The stock market rally extended its run in the final week of 2023, with the S&P 500 just below all-time highs. China data showed stronger sales for Tesla and key rivals heading into key delivery data in early January. Bristol Myers Squibb announced another notable biotech acquisition.
Stock Market Rallies Into End Of 2023
The Dow Jones hit a fresh record high while the S&P 500 index is almost there as the late 2023 market rally continued into the final week of the year. Various measures indicate a pullback or pause could be ahead, but it hasn't happened yet with all the major indexes up for a ninth straight week. Treasury yields hit a fresh five-month low while crude oil retreated after a brief bounce.
Nasdaq Stands Out, China Markets Slump
As of Dec. 28, the Dow Jones rose 13.8% with the S&P 500 up 24.6%. The Nasdaq has surged 44.2%, its best one-year gains since 2003. In Europe, the U.K.'s FTSE climbed 3.6% as of Dec. 28. Germany's DAX was nearly 20%, the best gain since 2019. In Asia, Japan's Nikkei 225 jumped 28.2%, the best gain since 2013. The Shanghai composite fell 3.7%, or 18.3% over the past two years. Hong Kong's Hang Seng tumbled 13.8%, or 39.5% over the past four years.
Tesla, China Rivals' Sales Pick Up
Tesla insurance registrations in China continued to increase sequentially in the week ended Dec. 24, putting the global EV giant on track to a hit a record for China deliveries as it seek a path to hit 2023 global targets. The competitive Chinese EV market is picking up steam at the end of 2023 with insurance registrations for Li Auto, Nio and China EV giant BYD all ramping up last week. Meanwhile, XPeng registrations fell more than 18% in the latest week. Bloomberg reported that Tesla plans to revamp the Model Y in China with mass production beginning as early as mid-2024. Tesla China refuted the report. Tesla is close to announcing a plant in India, local media reported.
Pharma Giants Buy Cancer Drug Developers
Bristol Myers Squibb will buy cancer drug developer RayzeBio in a $4.1 billion deal. The $62.50-a-share deal was a 104% premium to RayzeBio's Dec. 22 close. RYZB stock doubled as BMY dipped. RayzeBio, which came public earlier this year, is a clinical-stage developer of radiopharmaceutical therapeutics. A week earlier, Bristol Myers agreed to a $14 billion acquisition of Karuna Therapeutics, which is developing a drug for the treatment of schizophrenia. Meanwhile, AstraZeneca announced a deal to buy China-based cell therapy company Gracell Biotechnologies for $1.2 billion. GRCL stock soared.
News In Brief
China approved 105 online video games on Monday amid efforts to ease concerns after regulators proposed tougher new rules on gaming on Dec. 22. Video game plays such as NetEase and Tencent rose after plunging in the prior week.
Apple resumed selling the Apple Watch Series 9 and Ultra 2 after an appeals court temporarily stayed a ban on importing them over an intellectual property dispute.
Intel announced plans to build a $25 billion chip factory south of Tel Aviv after receiving a $3.2 billion grant from Israel's government. The plant is the latest project in Intel's global manufacturing expansion plans.
