The markets edged higher again ahead of the all-important Fed policy meeting this week. Markets widely expect the Federal Reserve to keep interest rates higher for longer. Treasury bond yields already fell in the last few weeks, especially longer duration ones. Debt markets are pricing in a rate cut in 2024
The downtrend in Pfizer (PFE) stock that began in late 2022 accelerated today. The company cut its 2024 guidance, partly citing the impact of its proposed Seagen (SGEN) acquisition.
Pfizer expects 2024 revenue of $58.5 billion – $61.5 billion, compared to the Wall Street estimates of $63.2 billion. Earnings per share of $2.05 – $2.25 is sharply below expectations of $3.17.
Covid vaccine will contribute ~ $8 billion in revenue while Paxlovid, the antiviral, will add $3.1 billion.
Roblox (RBLX) added 2.02%. BTIG picked the video game firm for its attractive valuation, strong free cash flow, and stable bookings on Dec. 7.
Hertz (HTZ) lost 4.93% yesterday and -0.23% in pre-market trade. It had fallen 3.61%.
Tesla (TSLA) recalled 2 million vehicles. The National Highway Traffic Safety Administration found that Tesla’s driver-assistance system Autopilot has inadequate measures to prevent its misuse.
Among the EV stocks, Tesla’s is the strongest. Rivian (RIVN) has a strong offering to compete with its Cybertruck. Conversely, Lucid (LCID), Fisker (FSR), and Polestar (PSNY) are stocks that investors should avoid as short interest increases.