Dow 30 Stock Roundup: WMT Earnings Beat, MRK's Keytruda SBLA Gets Priority Review
Zacks Investment Research | Feb 22, 2019 07:41AM ET
The index endured a holiday-shortened but volatile week. Optimism about a resolution increased among investors as a fresh round of trade talks between the United States and China started in Washington. Investors were also buoyed by indications from the Fed that the process of balance sheet unwinding could end soon. However, indications of a global slowdown kept investors worried.
Last Week’s Performance
The index increased 1.7% last Friday, buoyed by positive developments on the U.S. - China trade war front. China vowed to make efforts to boost U.S. exports to the country. Meanwhile, Trump declared a national emergency over funding for his border wall along America’s southern border with Mexico.
The Dow amassed 443.9 points to end the session in the positive territory. Gains for the Dow were backed by a surge in shares of JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs (NYSE:GS) , which gained 3.1% each.
The index gained 3.1% over last week. This marked the Dow’s best streak of weekly gains since November 2017. U.S. markets closed at their highest levels for 2019 on Tuesday. Stocks soared after a temporary deal to provide funding for a U.S. – Mexico barrier was reached between Republican and Democratic lawmakers.
Further, the rally continued for the rest of the week, buoyed by positive developments on the trade war front. Moreover, President Trump’s statement, which negated the possibility of a second government shutdown, also boosted investors’ confidence.
The Dow This Week
Markets were closed on Monday for the President’s Day holiday. The index inched up 0.03% on Tuesday as another round of U.S.-China trade talks kickstarted in Washington this week. Market watchers largely expect positive outcomes from the meeting.
Meanwhile, a group of U.S. states filed lawsuits against Trump’s declaration of national emergency over the border wall funding. Gains for the Dow were buoyed by a bump of 2.2% in shares of Walmart Inc. (NYSE:WMT) . The company posted an earnings beat in the fourth quarter of fiscal 2019.
The index gained 0.2% on Wednesday after the release of the minutes from Fed’s last meeting held in January. The Fed remained undecided on the future of rate hikes in the country.
However, the minutes indicated that Fed’s balance sheet unwinding might end by the end of this year. Meanwhile, trade talks between the United States and China continued in Washington. Gains for the Dow were buoyed by gains recorded by Boeing (NYSE:BA) and Caterpillar (NYSE:CAT) , up 1.3% and 3.3%, respectively.
The index lost 0.4% on Thursday after dismal economic data emanating from Europe and Japan indicated a slowdown in global growth. The Dow lost a whopping 103 points after shares of Walgreen Boots (NYSE:BA) lost nearly 2%.
However, concerns over a global slowdown were curbed to an extent as trade talks between the United States and China progressed. The two sides are in the process of hammering out an agreement to end this lingering conflict.
Components Moving the Index
Pfizer Inc. (NYSE:PFE) and Eli Lilly and Company (NYSE:LLY) announced that a higher dose of their NGF inhibitor, tanezumab, met the primary endpoint in a phase III study, evaluating it in patients with chronic low back pain (“CLBP”). Pfizer has a Zacks Rank #4 (Sell).
The phase III study evaluated two dosages – 5 mg or 10 mg – of tanezumab, a non-opioid candidate, subcutaneously administered every eight weeks for 56 weeks in patients with moderate-to-severe CLBP, followed by 24-week safety follow-up period. The eligible patients experienced inadequate relief or are intolerant to analgesics and suffering from the disease for more than three consecutive months.
Top-line data from the study showed that treatment with the 10 mg dose of tanezumab led to statistically significant improvement in pain compared to placebo after 16 weeks of treatment. (Read: Zacks Investment Research
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