Equities New York: US stock markets continue to rally at a moderate pace | news
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NEW YORK (dpa-AFX) – The US stock exchanges continued their rally on Monday after a hesitant start. The fact that the eagerly awaited talks between US President Joe Biden and China’s head of state Xi Jinping were not classified as a failure should help.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) rose around two hours before the close of trading by 0.55 percent to 33,933.03 points and reached its highest level since mid-August. The market-wide S&P 500 went up 0.33 percent to 4006.10 points. After a slightly weaker start, the technology-heavy NASDAQ 100 rose 0.24 percent to 11,845.90 points.
The New York Times quotes Asia expert Ryan Hass from the US think tank Brookings on the meeting between Biden and Xi this Monday. Both politicians held back on important issues without making any concessions in one direction or the other. Nonetheless, Biden and Xi have made it clear that tensions need to be eased and that neither side seeks an unbridled confrontation with the other. From China, Professor Shi Yinhong of People’s University (Renmin Daxue) said: “Both sides are very careful to avoid conflict.”
On the company side, everything revolved around the pharmaceutical industry at the start of the week in the USA. Roche suffered another setback in Alzheimer’s research as data on its drug candidate gantenerumab fell short of targets, boosting shares in Biogen and Eli Lilly (Eli Lilly and). Biogen were up 4.8 percent, hitting their highest level since September 2021. Eli Lilly gained 1.7 percent, getting back close to a record high set last week at just under $370. Like the pharmaceutical group from Switzerland, both companies are also active in Alzheimer’s research. Biogen and its partner Eisai recently raised hopes with study data on lecanemab.
Royalty Pharma, meanwhile, fell 1.9 percent. The British company, a biopharmaceutical royalty buyer, has Roche’s gantenerumab in its royalty portfolio.
Analyst studies also weighed on Teva (Teva Pharmaceutical Industries) and Hasbro. Analyst Chris Schott of US bank JPMorgan wrote that the generic drug maker’s growth continued to face challenges. Furthermore, parts of the portfolio are eroding, the generics business in North America is consistently below average and the chances for the biosimilar to the rheumatism drug Humira can only be calculated to a limited extent. Teva shares lost 0.6 percent.
Hasbro dropped 9.2 percent. Bank of America analyst Jason Haas downgraded the toymaker’s stock by two notches, from “buy” to “underperform.” He has dealt extensively with the business field “Magic: The Gathering”. According to him, the company produces too many cards, which destroys the long-term value of the brand. Prices are falling, game stores are losing money, collectors are liquidating their inventory and major retailers are reducing their orders./ck/he