- S&P 500 remains at 23-month highs ahead of Fed decision
- US dollar shows no significant movements
- Pfizer warns of possible sales declines in 2024 Vertex gains after positive results in pain medication study
Wall Street is holding its breath as the trading session opens on Wednesday. The indices recorded moderate increases of up to 0.30%. Still, they remain at 23-month highs. Similar behavior can be observed in the foreign exchange market, where the US dollar is moderately calm. On the USD Dollar Index (USDIDX) we see consolidation over the week. US 10-year bond yields are falling and are currently at 4.17%.
After the recent deeper correction, the USD dollar stopped its decline at around 102.3 points. Although the dollar began to strengthen again since late November, the advances were halted at the 38.2% Fibonacci retracement level of around 104.4 points. Today’s release of the Fed’s interest rate decision and Chairman Jerome Powell’s speech will be crucial in setting the trend for the coming weeks. Source: xStation 5
The S&P 500 is trading near yesterday’s closing prices today. The index gained a modest 0.05%. However, prices remain at 23-month highs, above the local half-year high of 4630 points. All of the market’s attention is definitely focused on the last conference and the FOMC decision this year. The market will look for clues in Chairman Jerome Powell’s speech on the prospects for the first rate cuts. Source: xStation 5
Company news
The shares of Pfizer (PFE.US) fell nearly 10% after the company forecast a decline in sales for 2024, citing reduced demand for its Covid-19 vaccine and related products. Forecast revenue of $58.5 billion to $61.5 billion is below analysts’ expectations of $62.66 billion. This downward move is attributed to an overvaluation of sales of Covid-19 vaccines and drugs, which had previously boosted Pfizer’s performance during the pandemic. The company expects to generate about $8 billion in sales next year from its Covid-19 vaccine and Paxlovid treatment, compared to the expected $12.5 billion this year. Amid this, Pfizer is focused on growing operating revenue and has announced a significant $43 billion deal for Seagen to build a separate cancer drug business. The company’s adjusted profit forecast for 2024 is also below analysts’ predictions.
Pfizer’s share price today reached its lowest level since 2013, excluding a one-day decline during the Covid-19 pandemic in 2020. Source: xStation 5
Vertex Pharmaceuticals (VRTX.US) rose 7.0% in premarket trading after announcing positive results from a Phase 2 trial of VX-548, its investigational non-opioid drug for the treatment of painful diabetic peripheral neuropathy. The study showed a significant and clinically meaningful reduction in pain as measured by the Numerical Pain Scale. The company highlighted VX-548’s potential to become a new class of medicine for millions of people with neuropathic pain. The drug was generally well tolerated in the study, and Vertex plans to move forward with critical development after discussions with regulators.
Sources: xStation5 from XTB
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