Stocks Eke Out Eighth Consecutive Week of Gains

Equity Indexes Wrap: Nike Drags Down the Dow and Apparel Stocks; Pharmaceuticals Gain on Bristol Myers Squibb’s Karuna Acquisition

3 hr 3 min in the past

The Dow

Intel (INTC) led the index, rising 2% to shut at a brand new one-year excessive. 

Amgen (AMGN) gained 1.7%, adopted carefully behind by fellow pharmaceutical agency Merck & Co. (MRK), up 1.2%.

Walmart (WMT) rose 1.2%, making it one in every of a number of low cost and low-cost retailers to outperform immediately.

Nike (NKE) tumbled 11.8% after asserting a $2 billion cost-cutting plan and reducing its full-year gross sales outlook on softer-than-expected demand. 

Disney (DIS) shares fell 1.1%, adopted by Apple (AAPL), down 0.6%.

The S&P 500

Engineering software program agency Ansys (ANSS) rose 18.1% to steer the index greater following reviews it was contemplating a number of acquisition provides. 

Albemarle (ALB) inventory rose 3.2% because the lithium miner prolonged its rebound after hitting a three-year low in November.

Bristol Myers Squibb (BMY) rose 2% after it mentioned it could purchase Karuna Therapeutics (KRTX) for about $14 billion. Karuna shares surged 47.4%.

Dollar General (DG) and competitor Dollar Tree (DLTR) each rose 1.7%, following Walmart inventory greater.

Gold miner Newmont (NEM) gained 1.5% as the worth of gold ticked up. 

VF Corp (VFC), the proprietor of Vans and Timberland, fell 3.2%, weighed down by Nike’s grim outlook for the attire sector. Clothing corporations Ralph Lauren (RL) and Tapestry (TPR) slipped 1.7% and 1.4%, respectively. Beauty manufacturers Ulta Beauty (ULTA) and Estée Lauder (EL) additionally lagged. 

Cummins (CMI) fell 2.9% after the engine maker agreed to pay practically $1.7 billion in penalties for altering a whole lot of 1000’s of pickup truck engines to bypass air air pollution laws.

The Nasdaq 100

Moderna (MRNA) gained 4.1% as international well being authorities warned of a brand new fast-spreading Covid variant, JN.1.

Micron Technology (MU) continued to climb after yesterday’s earnings beat. The inventory rose 1.2% Friday to complete the week greater than 6% greater.

Synopsis (SNPS) shares fell 6.3% after Reuters reported it had submitted one of many aforementioned provides to amass Ansys. 

The Trade Desk (TTD) fell 3.9%, a part of a sluggish tech sector that completed the day flat.

Bristol Myers Squibb Boosts Its Neuroscience Reach With $14 Billion Karuna Deal

4 hr 31 min in the past

Karuna Therapeutics (KRTX) shares skyrocketed over 46% after Bristol Myers Squibb (BMY) mentioned it could purchase the biopharmaceutical agency for $14 billion to develop its neuroscience portfolio.

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Bristol Myers Squibb mentioned it could pay Karuna traders $330 in money for each share they owned. That works out to a 53% premium to Karuna’s closing worth yesterday.

The drug maker mentioned that Karuna is growing medicines for these affected by psychological or neurological situations and that its lead asset, the antipsychotic KarXT, “represents a significant revenue contribution opportunity.”

Karuna Therapeutics shares have been up 47% to $316.50 per share Friday afternoon. Shares of Bristol-Myers Squibb additionally superior and have been 1.8% greater at $52.16 per share.

-Bill McColl

Midday Movers

5 hr 23 min in the past

Bristol Myers Squibb Co. (BMY): Shares of the pharmaceutical firm rose about 3% after it mentioned it could pay $14 billion to amass biopharma agency Karuna Therapeutics (KRTX) because it seeks to strengthen its neurology pipeline. Karuna shares jumped 47%.

Moderna Inc. (MRNA): The vaccine maker’s shares rose greater than 5% as well being authorities warned of a fast-spreading Covid variant, JN.1. Moderna shares have risen greater than 10% this week. 

Nike Inc. (NKE): Shares fell 11% after the corporate slashed its full-year gross sales outlook and introduced a $2 billion cost-cutting plan because it confronts weakening gross sales. 

Cummins Inc. (CMI): Shares sank greater than 2% because the engine maker agreed to pay $1.675 billion in penalties associated to allegations it altered truck engines to bypass air air pollution guidelines.

Nike Plunges After Slashing Its Outlook and Announcing Cost Cuts as Demand Softens

6 hr 17 min in the past

Nike (NKE) was the worst-performing inventory within the Dow and S&P 500 as shares tumbled after the athletic attire retailer slashed its full-year outlook due to “softer” gross sales within the second half. It additionally introduced plans to scale back prices, which might embrace layoffs.

The firm now expects fiscal 2024 income to extend roughly 1%, down from its earlier forecast of rising by a mid-single-digit share.

CFO Matt Friend defined that the brand new steering mirrored “increased macro economic headwinds,” notably in Greater China and Europe, the Middle East, and Africa. Friend added that the corporate plans to chop $2 billion in prices over the subsequent three years, noting that financial savings would come from throughout the business, not simply from promoting, basic, and administrative (SG&A) bills.

Nike shares have been down 11% Friday afternoon and have been in destructive territory for the 12 months.

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-Bill McColl

Ansys Leads S&P 500 Following Reports of Potential Acquisition

7 hr 8 min in the past

Simulation software program developer Ansys (ANSS) was the best-performing inventory within the S&P 500 Friday following reviews that the corporate was contemplating a sale after being approached by no less than one purchaser. 

The firm’s administration is in dialogue with advisors, in line with a Bloomberg report that cited unidentified individuals aware of the matter. The firm has not decided and will nonetheless resolve to rebuff the curiosity. 

Ansys makes engineering software program that purchasers in industries starting from aerospace and protection to semiconductors and medical tech use to design merchandise and take a look at them by simulations. 

Ansys shares jumped practically 17% on the open to commerce close to a two-year excessive earlier than retreating barely. The inventory was up about 9% in noon buying and selling, placing it practically 40% greater for the 12 months.

Fed’s Preferred Inflation Measure Slows in November

7 hr 53 min in the past

The Federal Reserve’s most well-liked gauge of inflation slowed as earnings and spending have been sturdy in November, the latest indicator pointing towards a delicate touchdown.

The private consumption expenditures (PCE) worth index dropped 0.1% in its first decline since April 2020. The index was up 2.6% from the identical time final 12 months however is nearer to the Fed’s 2% objective and down from 2.9% within the prior month. That is the bottom charge since early 2021.

The core worth index which excludes meals and power costs grew solely 0.1%, the identical because the month prior. Core PCE was up 3.2% from the identical time final 12 months, down from 3.4% the month prior.

The slowdown might bolster confidence that the Fed’s anti-inflation charge hikes have delivered their desired end result. It might additionally elevate the percentages that Fed officers will comply with by with the rate of interest cuts they forecasted for subsequent 12 months at their December assembly.

-Naomi Buchanan

Video Game Stocks Sink on China’s Proposed Gaming Regulations

8 hr 36 min in the past

Chinese gaming shares tumbled Friday morning after regulators proposed new guidelines designed to curb the period of time and money spent on video video games. 

The guidelines, proposed by China’s National Press and Publication Administration, embrace an unspecified cap on how a lot gamers can spend inside a sport and banning builders from rewarding gamers for each day logins. The guidelines build on China’s already strict gaming laws, which restrict minors to taking part in video video games between the hours of 8 p.m. and 9 p.m. on Friday, Saturday, Sunday, and statutory holidays.

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Friday’s announcement got here as a shock to China’s gaming business, which serves one of many world’s largest video markets. Chinese online game gross sales topped 300 billion yuan ($42.6 billion) in 2023.

Shares of Chinese gaming giants plummeted on the information. Shares of Tencent Holdings (TCEHY) buying and selling over-the-counter fell greater than 11%, whereas American depositary receipts of NetEase (NTES) slumped 17%. 

E-commerce corporations Meituan (MPNGF) and Alibaba (BABA) fell 5% and 1%, respectively, amid considerations that Friday’s guidelines might sign the resumption of a authorities crackdown on huge tech that began in 2020 and had appeared to wane within the final 12 months.

Stocks Making the Biggest Moves Premarket

9 hr 55 min in the past

Gains: 

• Karuna Therapeutics Inc. (KRTX): Shares of the biopharmaceutical firm jumped practically 50% to about $318 after Bristol Myers Squibb (BMY) mentioned it could purchase the corporate for $330 a share, or about $14 billion. Bristol Myers Squibb shares slipped about 0.5% in early buying and selling. 
• Ansys Inc. (ANSS): Shares rose 22% amid reviews the software program firm was contemplating a sale after receiving takeover curiosity from a number of potential consumers.
• Rocket Lab USA Inc. (RKLB): Shares of the aerospace firm gained greater than 15% after it mentioned it had received a $515 million contract from a authorities purchaser.

Losses: 

• NetEase Inc. (NTES): American depositary receipts of the Chinese gaming firm fell greater than 20% after Chinese regulators proposed new curbs on on-line gaming. Gaming and Chinese shares adopted NetEase decrease on the information. 
• Nike Inc. (NKE): Shares of the attire firm fell about 12% after it lower its gross sales outlook for the fiscal 12 months and mentioned it could implement a cost-cutting plan to avoid wasting $2 billion within the subsequent three years. Shoe retailer Foot Locker (FL) fell 7% alongside different attire and sporting items shares. 

Stock Futures Rise as Data Shows Inflation Slowed Again in November

10 hr 29 min in the past

Futures contracts related to the Dow Jones Industrial Average have been 0.3% decrease in early buying and selling Friday.

S&P 500 futures have been up 0.1%.

Nasdaq 100 futures traded about 0.2% greater.