Market Highlights: Wall Street skids ahead of CPI; Wegovy could be ‘top selling drug in history’
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The ASX 200 is set to open slightly higher on Thursday despite stocks falling in New York. At 8am AEST, the ASX 200 index futures was pointing up by just 2 points.
Overnight, US stocks skidded for the second day in a row – as the S&P 500 fell 0.7%, blue chips Dow Jones down by 0.54%, and tech heavy Nasdaq down by -1.17%.
Traders ditched risk assets ahead of today’s (US time) CPI inflation report, which will shape the outlook for the Fed Reserve’s next steps.
Ahead of the report, bond investors also gobbled up the newest Treasury 10-year note issuance, pushing its yields below 4% as the market raises bets that the Fed peak is near.
To stocks, Nvidia fell 5% ahead of its earnings despite FT’s report that it was going to receive billions of dollars in orders from Chinese tech giants.
Walt Disney rose 3% after hours after reporting its Q3 earnings where profits came in at $US1.03 a share, beating the US99¢ forecast.
WeWork plunged almost 40% after saying post-market yesterday that there’s “substantial doubt” about its ability to continue operating, citing growing canceled memberships.
BTIG’s analyst Thomas Catherwood, who recommended WeWork to clients as a buy and said it could triple, backtracked and said “We were wrong,” in a note to investors overnight.
He still however rated the stock as “neutral” despite the company saying it could go bankrupt.
In a groundbreaking study, the hyped anti-obesity drug from Novo Nordisk, called Wegovy, was found to cut the risk of major cardiovascular disease like a heart attack by a fifth.
Currently, Wegovy costs over US$1,300 per month for weekly injections, but insurance companies could now feel pressured to start covering this pricey medication.
“If they play baseball in Denmark, Wegovy just hit a home run,” Barclays analyst Emily Field wrote, a nod to Novo Nordisk’s Danish home base.
The latest study means that Wegovy and a similar drug from Eli Lilly (called Mounjaro) could easily become the “top-selling pharmaceuticals in history,” a report from Barron’s said.
The Novo Nordisk stock price has gained by 20% this week, and 60% in the last 12 months. Eli Lilly also jumped by 20% on Tuesday.
Overnight, gold traded lower by 0.5% to US$1,915.36 an ounce.
“With a softer dollar, gold shouldn’t be weakening this much ahead of a key inflation report,” said Oanda analyst, Edward Moya.
“Some big traders must be profit-taking over fears Wall Street will not react kindly to a slight rise with the headline annual inflation reading.”
Crude prices rose by +1.5%, with WTI now trading at US$84.29 a barrel.
“Oil prices should remain supported going forward as OPEC+ remains committed to keeping the market tight and as the Russia-Ukraine war could threaten Russian crude exports,” said Moya.
Iron Ore 62% fe climbed by +0.3% to $US104.70/ a tonne.
Bitcoin meanwhile was down -0.83% to US$29,540.
MPower Group (ASX:MPR)
The battery storage company said that acquisition accounting for Lakeland Solar & Storage Project has been completed, resulting in a profit of $6.1 million being recognised. Lakeland, located in Cooktown Shire, North Queensland, with a 10.8MWac solar farm, was valued at $12.7 million following an independent external valuation. The $6.1 million gain will be taken as profit in the FY2023 full year accounts.
PYC Therapeutics (ASX:PYC)
PYC has increased its shareholding in subsidiary Vision Pharma to 96.2% (previously 95.2%). Vision Pharma owns the VP-001 Program in clinical development targeting Retinitis Pigmentosa Type 11 (RP11). PYC is currently conducting a Phase 1 clinical trial of VP-001 in patients with RP11.
Titomic has received an order for a high pressure cold spray system from the Sabanci University in Turkey. The system has been sold for EUR1.4 million, and is expected to be delivered, installed, and paid for by April 2024. The system uses Titomic’s Kinetic Fusion technology, also known as cold spray, to enable additive manufacturing, material science, and surface engineering capabilities.
Riedel Resources (ASX:RIE)
New high grade results at Tintic have extended mineralisation by approximately 50m along strike, and 50m down dip to the north and east of previous drilling. Significant results include: 1.52m @ 15.6g/t Au, 160.5g/t Ag, 1.02% Pb, 0.38% Zn, and 5.32m @ 2.37g/t Au, 329g/t Ag, 0.28% Pb, 0.40% Zn.
Basin Energy (ASX:BSN)
Basin provided an update on its exploration activities at its Geikie Uranium Project in Canada. Basin’s maiden drilling campaign has now been completed. Drilling has successfully identified a series of regionally significant alteration patterns. Multiple elevated radioactive zones have been identified with downhole gamma probe peaks up to 4,802 counts per second.
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