Daily Newsletter | December 22, 2023

December 22, 2023

TLDR

MARKET RECAP → Stocks rose Friday as investors looked to close out the year strong with a classic Santa Claus rally. This marked the 8th straight week of gains for the major averages, spurred by a clear change in sentiment for stocks catapulted by an expected “Fed Pivot” next year (reversal in monetary policy from rising rates, to declining rates).

BRISTOL BUYS KARUNA → ? Bristol Myers Squibb clinches a $14 billion deal for Karuna Therapeutics, aiming to rejuvenate its portfolio with promising neurological and psychiatric treatments amidst a competitive pharma landscape.

GAMING GIANTS TUMBLE → ? China’s new gaming curbs send Tencent, NetEase, and Bilibili into a market value nosedive, spotlighting the ongoing regulatory crackdown’s impact on the tech behemoths.

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

Today’s S&P 500 Heatmap

Source

Today’s Top News

BRISTOL BUYS KARUNA

? Bristol Myers Squibb announced a $14 billion cash acquisition of Karuna Therapeutics, with Karuna’s shares surging over 47% and Bristol’s rising more than 2%. The move aims to bolster Bristol Myers’ drug pipeline, especially following a dip in demand for its blood cancer drug Revlimid.

? The acquisition focuses on expanding Bristol Myers’ presence in the neuroscience field, with Karuna’s lead asset, KarXT, an antipsychotic expected to treat schizophrenia by late 2024 and potentially Alzheimer’s disease psychosis and a form of bipolar disorder.

? Both companies’ boards unanimously approved the deal, expected to close in the first half of 2024, marking a significant stride in treatment advancements for neurological and psychiatric conditions.

Source: shutterstock

GAMING GIANTS TUMBLE

? Tencent, NetEase, and Bilibili saw significant market value losses after China proposed new online gaming rules aimed at curbing excessive gaming and spending, with Tencent alone losing about $43.5 billion in market value.

?️ The draft guidelines from China’s National Press and Publication Administration include bans on daily login rewards and high-value transactions in games, as well as imposing recharging limits with warnings for “irrational consumption behavior.”

? The new regulations mark another phase in China’s tightening grip on the tech sector, particularly online gaming, as the industry was just beginning to recover from a broader crackdown that started in late 2020.

Source: shutterstock

Keep Reading

Here are the big health sector themes to watch next year (CNBC)

Universal banks on ‘Migration’ to expand its animation lead over Disney (CNBC)

Angola’s OPEC exit highlights group tensions – but is unlikely to rattle the market (CNBC)

Meta is one step closer to following in Airbnb’s footsteps as $954 million Italian tax case heads to EU judgment (Fortune)

RSEC ‘deeply regrets’ errors in crypto case, asks judge to waive sanctions after misleading statements (Fortune)

And if you want more, be sure to check out the MoneyLion blog for tips, hacks and all things money. (MoneyLife)

Our Favorite Tools & Resources

Coinmarketcap.com – Crypto market data
Finviz – Financial visualizations
Trading Economics – Economic calendar
ChatGPT – Large language model-based chatbot
CME FedWatch Tool – Market-implied interest rates
Dataroma – Track stock picks and portfolios of legendary value investors such as Warren Buffett
Vimcal – Lightning-fast calendar and AI scheduling assistant

Was this email forwarded to you? Sign up or refer a friend for free!

Interested in sponsoring this newsletter? Let us know!

The Bull vs. Bear Merchandise Promotion is a limited time campaign that begins on December 1, 2023 at 12:00 AM ET and ends on the date that there are no more Rewards. This Promotion is available to any registered MoneyLion user who is a legal resident of the 50 United States or the District of Columbia and who has reached the age of majority in their state as of the beginning of the Promotional Period. See terms and conditions here.