Friday, June 9, 2023

Markets rise cautiously

Dow was up 94, advancers slightly ahead of decliners & NAZ gained 85.  The MLP index slid back 1+ to the 227s & the REIT index was about even at 370.  Junk bond funds hardly budged & Treasuries were sold, raising yields.  Oil went higher in the 71s & gold was flattish at 1978.

AMJ (Alerian MLP Index tracking fund)


 

 




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Treasury yields rose as investors looked ahead to the Federal Reserve monetary policy meeting next week, where officials will announce a fresh interest rate decision.  The yield on the 10-year Treasury was up by more than 4 basis points to 3.755% & the 2-year Treasury yield was trading more than 4 basis points higher at 4.566%.  Yields & prices move in opposite directions & one basis point equals 0.01%.  Investors weighed what could be next for interest rates ahead of the Fed's next meeting on Jun 13 & 14.  Uncertainty about whether the central bank will continue or pause its rate-hiking campaign has spread in recent weeks as both Fed officials & economic data have provided mixed signals.  Weekly initial jobless claims came in higher yesterday, reaching the highest level since last Oct, according to the Labor Dept.  Some investors saw this as a hint that elevated rates are having the impact desired by the Fed & are cooling the economy, including the job market, prompting them to believe that the Fed would not hike rates further next week.  According to the CME FedWatch Tool, traders are currently pricing in a close to 28% chance of a rate increase then.

Treasury yields climb as investors prepare for Fed policy meeting

A panel of independent advisors to the Food & Drug Administration is meeting to make a recommendation on whether the Alzheimer's drug Leqembi, made by Eisai & Biogeb (BIIB), should receive full approval from the agency.  The FDA is not required to follow the advisors' recommendation, but a panel vote in favor of Leqembi would help pave the way for the treatment's approval this summer.  The FDA is expected to make a final decision on Leqembi on Jul 6.  Leqembi is technically already available on the US market after receiving fast-track approval in Jan, but very few seniors can access the expensive treatment because Medicare is restricting coverage to only people who are participating in clinical trials.  There are no clinical trials underway.  The stock was unchanged.
If you would like to learn more about BIIB
, click on this link:
club.ino.com/trend/analysis/stock/BIIB_aid=CD3289&a_bid=6aeoso5b6f7

FDA advisors to weigh whether Alzheimer’s drug Leqembi should receive full approval

General Motors (GM) confirmed a $500M investment in its Arlington, Texas, assembly plant to get it ready to build the next generation of its internal combustion engine-powered full-size SUVs.  The news came on the same day that CEO Mary Barra & Tesla (TSLA) CEO Elon Musk announced a landmark deal that will see GM's future electric vehicles adopt TSLA's charging technology & gain access to its Supercharger network.  "Today we are announcing plans for a significant investment in Arlington to strengthen our industry-leading full-size SUV business," exec VP of Global Manufacturing & Sustainability Gerald Johnson said.  "Preparing the plant to produce future ICE full-size SUVs reflects our commitment to our valued customers and the efforts of the dedicated Arlington Assembly employees, who have been breaking production records this year."  The Chevrolet Tahoe & Suburban, GMC Yukon & Cadillac Escalade comprise the best-selling lineup of full-size SUVs in the US & are a major profit center for GM.  Starting prices for the models range from $56K for the entry-level Tahoe to $151K for the high performance Escalade-V.  The stock rose 71¢.
If you would like to learn more about GM
, click on this link:
club.ino.com/trend/analysis/stock/GM_aid=CD3289&a_bid=6aeoso5b6f7

GM makes massive investment in new internal combustion-powered SUVs

There is not much new to excite the stock market while investors wait for Fed comments next week.

Dow Jones Industrials

 






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