Market scorecard
US markets edged lower yesterday as it anticipates forthcoming inflation data. Despite this minor setback, all three major indices remain poised to finish February with positive gains, marking the continuation of their upward trajectory for the fourth consecutive month.
These stock market gains extend beyond the renowned tech giants often referred to as the "Magnificent Seven." According to Dow Jones Market Data from FactSet, as of Friday, a notable 171 stocks within the S&P 500 index have outpaced the index's performance this year.
In company news, Alcoa (NYSE:AA) has made a $2.2 billion all-share offer to its Australian partner Alumina in a quest to simplify its operations. Elsewhere, Woodside Energy (NYSE:WDS) reported a 74% drop in annual net profit as it impaired assets in the Gulf of Mexico and Australia. Lastly, the FTC sued to block Kroger's (NYSE:KR) $25 billion bid for Albertsons in what would've been the largest supermarket deal in history.
At market close, the JSE All-share closed down 0.80%, the S&P 500 fell 0.38%, and the Nasdaq was 0.13% lower.
One thing, from Paul
We are entering a golden age for biotech companies and Vestact-recommended stock Amgen (NASDAQ:AMGN) is not being left behind. There are three major innovations in progress now: (1) advancements in AI and deep learning, (2) significant cost reductions for collecting biological data through lab automation, and (3) the precision editing of DNA with CRISPR.
Amgen is not just investing in cutting-edge research and development, they are also rolling out new high-tech manufacturing facilities. They just opened a massive plant in New Albany, Ohio, that cost almost $500 million to build. They aim to produce injectables there, including the new weight-loss drug MariTide (once it's approved by the FDA).
Goldman Sachs reckons that Amgen should be trading at $350 per share (it's at $286 now) on the basis of its "catalyst-rich" pipeline of new obesity, immunology, inflammation, and cancer drugs. Sounds good, we will go along for the ride.
Byron's beats
We have a lot of clients sitting on Rands, waiting for the currency to strengthen so they can send it offshore. We often get asked for our advice on this matter.
Trading Rands for Dollars at 19.30 feels like a very bitter pill to swallow. But it is all relative. If the currency went to R18 now, it would feel strong, but if you gave someone that level 2 years ago, they would laugh at you.
In reality, there are many factors unknowable and out of our control that will move both the Dollar and the Rand. The recent rhetoric from the Fed, which is delaying interest rate drops, is positive for the USD. But dropping rates is inevitable and that should be good news for the Rand.
Having said that, we also have a very important election coming up in SA. If you cannot envision a positive outcome from that, then you should probably send money offshore sooner rather than later.
Michael's musings
Over the weekend, Bloomberg published an article on Apple (NASDAQ:AAPL)'s expected additions to its wearables range. The speculative devices include a smart ring, smart glasses and AirPods with a camera. I'm trying to think of a use case for AirPods with a camera?
Out of the list, I'm most excited about the smart ring. I love the data that I get from my Garmin watch, but I don't wear it all the time. I hate sleeping with something bulky on my arm, and some days I'm wearing a different watch. Having a smart ring would give me all the data without needing a watch.
Samsung (KS:005930) launched their Galaxy Ring this week, targeting people 'who want the benefits of a smartwatch without feeling inundated with data'. Hopefully, Apple's version isn't too far behind.
Bright's banter
The dissolution of a marriage made headlines after a woman parted ways with her husband due to his involvement in insider trading, leveraging information gleaned from her professional discussions.
Tyler Loudon, acting upon privileged insights obtained from his wife's employment at BP (LON:BP), acquired 46 000 shares in TravelCenters, a truck stop travel company. BP subsequently announced a proposed $1.3 billion acquisition.
TravelCenters' stock surged by an impressive 71%, leading to substantial gains exceeding $1.76 million for Loudon. However, he chose to conceal his windfall from his then-spouse and swiftly divested all acquired shares.
Subsequent scrutiny by both BP and the Securities and Exchange Commission exposed Loudon's illicit actions, resulting in his apprehension for insider trading. Not even a "Sorry honey, I made all of this money for you" could save his marriage.
Signing off
Asian markets are mixed this morning. Benchmarks rose in India, Japan, and mainland China, while they fell in Hong Kong and South Korea.
US equity futures are flat pre-market. The Rand is trading at around R19.30 to the US Dollar.
Companies reporting their earnings include Lowe's (NYSE:LOW), Autozone (NYSE:AZO), Coupang (NYSE:CPNG), and eBay (NASDAQ:EBAY).