Novartis Buys $2.5 Billion in Stock, Dow Futures Rise Nearly 1%

  • Novartis stated that it will achieve its goal of saving $2 billion in costs by the end of this year.
  • The Dow rose 1.12%, the Nasdaq rose 0.22%, and the S&P 500 index rose more than 0.5%.
  • In terms of sectors, new energy auto stocks led the gains.

Swiss pharmaceutical giant Novartis said on Tuesday that it plans to repurchase up to $2.5 billion worth of stock because it expects new drug candidates to drive sales growth. The company said that five anti-cancer drugs currently in clinical trials are expected to receive key data and progress next year.

Novartis International AG is a Swiss multinational pharmaceutical company based in Basel, Switzerland. It is one of the largest pharmaceutical companies by both market capitalization and sales.

Among these drugs is the potential lung cancer drug, Canakinumab. Novartis stated that it will achieve its goal of saving $2 billion in costs by the end of this year, as planned, and save another $2 billion in the medium term.

Three Major Index Futures Fluctuated

On Monday, three major US stock indexes closed higher. The Dow rose 1.12%. The Nasdaq rose 0.22%, and the S&P 500 index rose more than 0.5%.

In terms of sectors, new energy auto stocks led the gains. Xiaopeng car rose over 30%, ideal car rose more than 14%, Weilai rose more than 13%, and Tesla rose more than 6%.

U.S. November PMI Initial Value Hits Multi-Year High

On Monday, official US data showed the US November Markit manufacturing PMI initial value recorded 56.7, better than the expected 53, the former value of 53.4. US November Markit services sector PMI initial value recorded 57.7, also higher than the expected 55.3, the previous value is 56.9.

The initial value of the manufacturing PMI set a new high in the past 74 months, and the initial value of the service industry PMI set a new high in 68 months.

BlackRock upgraded the rating of U.S. stocks as positive vaccine news promoted hopes of an economic restart in 2021. On Monday, the investment management group said that despite the surge in health incidents, investors should ignore recent market volatility and buy US stocks. The agency raised US stocks to a rating equivalent to “buy.”

Chief U.S. equity strategist Michael Wilson

Michael Wilson, who has been known as Wall Street’s god operator, once again predicted the market outlook for the US stock market. Wilson, chief investment officer of Wall Street, expects a slight correction in US stocks, but is still firmly bullish on US stocks.

At the same time, he believes that the rise in stock prices will be driven by cyclical stocks, and small-cap stocks have more investment opportunities.

Wilson can be called the most accurate forecaster on Wall Street. This is because in the past year, Wilson has done what almost no one in the industry can do: he can not only accurately predict market trends before the market occurs, but also accurately predict market inflection points.

He was bullish on the market when the epidemic was at its worst in March, when most people in the industry were bearish on the market. He remained bullish until more than a month before the U.S. stock market plummeted in early September.

He warned, “be prepared for the very difficult trading environment in the next five weeks.” Then the technology stocks plummeted in early September, confirming that his prediction was correct.

Two weeks later, he believed that “the uncertainty of the election results, the possibility of the passage of fiscal stimulus policies, and the impact of the second wave of new coronavirus epidemics make investors not optimistic about the market,” so he predicted that the US stock market will usher in several months.

For the second time since the 10% correction, the S&P 500 index fell 9% and the Nasdaq and Russell 2000 index fell 10% and 7%, respectively.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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