Here are the main things investors should know to start their day of trading:
1. Towards the end
Stocks are finishing the last month of the year with good momentum. On Thursday, the Dow Jones Industrial Average went up by 1.47%, which is over 500 points, reaching a new high for the year.
The S&P 500 increased by 0.4%, and even though the Nasdaq Composite was lower on that day, it performed better than other major averages for the month, going up by more than 10% in November. Both the Dow and S&P gained nearly 9% for the month. As we enter December, the Dow is up 8.5% year to date, the S&P 500 is up almost 19%, and the Nasdaq is up over 35%.
2. A Losing Combination
Pfizer has decided to stop the development of a version of its experimental oral weight loss drug that requires taking it twice a day. This decision comes after a mid-stage clinical trial showed high rates of adverse effects.
The reported side effects were mostly mild and related to the digestive system, but a surprisingly large number of participants stopped taking the drug during the trial. Pfizer will continue to study a once-a-day version of the drug and plans to share data on its effectiveness and how well it is tolerated in the first half of 2024. Pfizer mentioned that these results will guide their future steps in the competitive weight loss market.
3. Trying Again and Again
Nelson Peltz’s investment firm, Trian Partners, is once again attempting to secure seats on Disney’s board. On Thursday, the firm stated that it owns around $3 billion in Disney stock and remains unsatisfied with the way the company is governed.
Peltz had previously tried to get a seat on the board, expressing concerns about leadership succession and returns for shareholders. However, he withdrew his efforts when Disney’s CEO, Bob Iger, restructured the business. Now, Peltz is back, expressing worries about shareholder value and stating that Trian plans to present their case for change directly to shareholders.
Disney dismisses the proxy battle as a personal issue, suggesting that Peltz’s ally Ike Perlmutter holds a longstanding personal grudge against Disney’s CEO, Robert A. Iger, which might not align with the interests of other shareholders.
4. Truce Ends
The one-week ceasefire between Israel and Hamas concluded on Friday morning, leading to a resumption of hostilities. The Israeli Defense Forces reported early in the morning that they had fired at Hamas in Gaza, citing an alleged attempt to launch an attack against Israel.
Initially planned for four days, the pause in fighting was extended to facilitate more humanitarian efforts in Gaza and the release of hostages and prisoners. As of Friday, 110 hostages taken by Hamas on Oct. 7 and 240 Palestinian prisoners held in Israeli jails had been released.
5. Cybertruck Details
Elon Musk shared the pricing and performance details of the long-anticipated Tesla Cybertruck. Musk highlighted the truck’s durability, featuring bulletproof bodywork, as well as its towing capabilities and quick acceleration from 0 to 60.
Speaking at a reveal event in Austin, Texas, Musk expressed confidence in the Cybertruck, calling it their best product and the most unique vehicle on the road.
The base model, with an estimated battery range of 250 miles, starts at $60,990, according to Tesla’s website. An all-wheel-drive version, with a 340-mile battery range, will start at $79,990, and a high-performance “Cyberbeast” model, offering 320 miles of range and 845 horsepower, will begin at $99,990.
Summary
Stocks are positive as the year ends. Pfizer paused a weight loss drug due to side effects, focusing on a once-a-day version. Trian Partners, led by Nelson Peltz, is revisiting a Disney board battle. Israel-Hamas conflict resumed after a ceasefire. Elon Musk unveiled Tesla’s Cybertruck.
