The new year has begun with a significant shift in investor sentiment, particularly towards the technology sector. The 'Magnificent 7' tech giants, which include Apple (AAPL, Financial), Amazon (AMZN, Financial), Alphabet (GOOG, Financial) (GOOGL, Financial), Meta (META, Financial), Microsoft (MSFT, Financial), Nvidia (NVDA, Financial), and Tesla (TSLA, Financial), are experiencing a change in exposure from long-only active funds. This shift, according to BofA, has reached a "critical mass," with concerns that these stocks could be liquidated if the market avoids a hard landing and diversifies beyond secular growth stocks. The equal-weighted S&P 500 has already started to outperform the cap-weighted index since mid-November, indicating a potential broadening of market leadership.
Intel (INTC, Financial) has announced a collaboration with DigitalBridge Group (DBRG, Financial) to create a new company, Articul8 AI, which will focus on generative artificial intelligence. This new venture aims to provide a comprehensive AI software platform for enterprise customers. Intel's CEO, Pat Gelsinger, expressed optimism about the collaboration, which aligns with Intel's AI acceleration strategy. Arun Subramaniyan, previously with Intel’s Data Center and AI Group, will lead Articul8 as CEO.
Stock index futures are signaling further losses as interest rates continue to climb. The 10-year Treasury yield has risen, reflecting growing skepticism about near-term rate cuts by the Federal Reserve and the European Central Bank. This skepticism is evident in the reduced probability of rate cuts priced into futures markets, indicating a cautious outlook from investors.
Apple (AAPL, Financial) shares dipped following a downgrade from Barclays, driven by concerns over the iPhone 15's performance and a slower recovery in other product lines. Analyst Timothy Long adjusted Apple's rating due to these factors and set a lower price target, highlighting challenges in service revenue growth.
Biopharma company Elektrofi has entered into a significant agreement with Johnson & Johnson’s (JNJ, Financial) Janssen Biotech to develop a subcutaneous version of a cancer drug. The collaboration includes an $18M upfront payment to Elektrofi, with the potential for over $155M in milestone payments and royalties on future sales.
The United States' national debt has surpassed $34 trillion, a concerning fiscal milestone that arrives as Congress faces another potential government shutdown. The rising cost of servicing the national debt is becoming increasingly unsustainable, with interest payments nearing $1 trillion.
Verizon (VZ, Financial) received an upgrade from KeyBanc Capital Markets, citing a favorable outlook for the wireless industry and the company's broadband strength. The investment firm's analysis suggests positive trends for Verizon in subscriber growth, churn stability, and revenue per user.
Scynexis (SCYX, Financial) shares fell after an amendment to its licensing agreement with GSK (GSK, Financial) for the antifungal drug Brexafemme. The amendment adjusts the milestone payments Scynexis will receive due to a delay in commercialization and clinical development associated with a potential contaminant risk.
Entravision (EVC) has announced a sales partnership with Snap Inc (SNAP, Financial), aiming to expand Snapchat's advertising reach in emerging markets across the Asia-Pacific region.
Chinese gaming stocks, including Tencent (TCEHY, Financial) (TCTZF, Financial) and NetEase (NTES, Financial), saw a rise following the removal of a key gaming regulatory official in China. This change has sparked optimism about the gaming industry's regulatory environment.
Ballard Power Systems (BLDP, Financial) has secured a new supply agreement with NFI Group for fuel cell engines, signaling continued growth in the North American market for hydrogen fuel cell buses.
Copper prices have dropped to two-week lows amid concerns about demand in China, following weak industrial data. This decline in copper prices is indicative of broader concerns about the global economic outlook.
Morgan Stanley downgraded Keurig Dr Pepper (KDP, Financial) to an Equal Weight rating, citing slower growth and weaker pricing power compared to peers. The downgrade comes after a significant rally in the company's shares.
Enterprise Products Partners (EPD, Financial) has priced a public offering of $2.0 billion in notes, with plans to use the proceeds for general company purposes, including growth investments and debt repayment.
Inovio (INO, Financial) is preparing to submit a Biologics License Application for its drug INO-3107, with a potential commercial launch targeted for 2025. The company is seeking accelerated approval for the treatment of recurrent respiratory papillomatosis.
Google (GOOGL, Financial) (GOOG, Financial) and other tech companies like Meta Platforms (META, Financial), Telegram, and TikTok (BDNCE) have reportedly settled fines in Russian courts, while Twitter and Twitch remain listed as debtors.
ABVC BioPharma (ABVC) has received a milestone payment of 46 million shares from AiBtl BioPharma as part of a global licensing agreement, with further payments expected upon achievement of additional milestones.
