CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

US stocks set to start near record highs; Pfizer slides lower on Mylan merger

14:01 29 July 2019

Summary:

  • S&P500 remains near Friday’s all-time high

  • Trump weighs in again ahead of Fed decision

  • Pfizer shares drop as Mylan merger announced

 

Stock markets across the Atlantic are set to begin the new week close to where they ended the last with all major indices little changed ahead of the cash session. Friday saw the S&P500 make a new record high and while the Nasdaq  and Dow Jones both failed to chalk up a fresh milestone, they remain within striking distance of all-time peaks. 

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

The S&P500 hit a new all-time high of 3029 on Friday. There is some negative divergence apparent on the MACD but as of yet there are no reversal signals from the candlesticks. Source: xStation 

 

It’s a busy week on the economic calendar with several big earnings releases (Apple after Tuesday’s close could be of particular interest) due out and the latest jobs report on Friday, but in broader market terms the stand out event is no doubt Wednesday’s Fed decision. Markets have pretty much discounted a 25 bps cut, which should it occur would be the first time in a decade the US central bank has lowered rates, but the key aspect to watch will likely be whether this is a one-off or if there are more cuts to come. 

Donald Trump has been a near constant public critic of Fed chair Powell and the FOMC in the past year calling for rate cuts and the US president has once more taken the opportunity to weigh in with his monetary policy opinions today. Source: Twitter 

 

News that Pfizer is set to combine part of its business with Mylan has caused some sizable moves in both stocks in pre-market trade, with the former called to start in the red and the latter jumping strongly higher. The all-stock deal would see each Mylan share converted into one share of the new company with Pfizer shareholders owning 57% of the combined entity and Mylan the rest. The divestiture relates to Pfizer’s off-patent drug business and will see it join forces with generic drug maker Mylan. Estimates at the combined company’s annual sales are in excess of $20B. In other related news, Pfizer reported adjusted earnings per share of $0.80 for the second quarter, beating estimates by $0.05. Mylan beat the street by $0.08 on the same measure and posted EPS of $1.03. Pfizer shares are called to begin lower by around 2% while Mylan is expected to start firmly higher, somewhere in the region of 15%. 

Mylan shares have plunged by more than 75% from their 2015 peak but the stock is expected to jump this afternoon on the Pfizer merger news. Source: xStation 

 

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language