The equity market is getting more narrow, Raymond James says
Investors largely predicted that the market rally would broaden in 2024, with small-cap stocks stealing more of the spotlight away from their larger counterparts.
However, midway through the year, it seems that the already narrow market just keeps getting more and more constrained, according to Raymond James.
“The market just keeps getting narrower, as the S&P 500 finished the week was up +1.3%, essentially at all-time highs, while small and mid cap indexes were down ~2%, below 50-DMA and down well below all-time highs,” the financial institution wrote.
— Lisa Kailai Han
Eli Lilly shares hit fresh highs after FDA panel says its Alzheimer’s drug is effective
The Eli Lilly logo is shown on one of the company’s offices in San Diego, California, on Sept. 17, 2020.
Mike Blake | Reuters
Eli Lilly shares have already gained about 48% year to date, but the stock hit a fresh 52-week high in trading Monday. A U.S. Food and Drug Administration panel unanimously agreed its Alzheimer’s treatment, donanemab, was effective for patients in the early stages of Alzheimer’s disease. Although the panel’s recommendations are nonbinding, the agency typically follows its guidance.
Similar to Leqembi, a competing therapy developed by Eisai and Biogen, Eli Lilly’s drug works to remove the buildup of beta-amyloid plaques in the brains of patients who have the fatal disease.
— Christina Cheddar Berk
Rate hikes are unlikely despite strong May jobs report, UBS says
May’s jobs report came in stronger than expected, but is still not enough to warrant any rate hikes in the near future, according to UBS.
The strong jobs report, combined with other indicators signifying the economy is slowing down, paints a mixed picture and complicates the Federal Reserve’s job this year. But UBS is still pricing in two rate cuts this year, starting in September.
“Overall, we keep our view that the U.S. economy is slowing,” the bank added.
To that end, UBS recommended investors stick to quality bonds as well as technology stocks such as semiconductor names.
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