US Open: Wall Street struggles for direction before Fed interest rate decision 🔔

• US500 remains at 23-month highs ahead of the Fed decision
• USD Dollar holds off significant movements
• Pfizer warns that company revenues may decline in 2024
• Vertex jumps after positive results in pain medication study

Wall Street is holding its breath at the opening of the cash session on Wednesday. The indices are recording moderate increases up to 0.30%. Nevertheless, they remain at 23-month highs. Similar behavior can be observed in the forex market, where the USD Dollar is moderately calm. On the USD Dollar index (USDIDX), we see consolidation over the week. The yields on 10-year US bonds are falling and currently stand at 4.17%.

After the recent deeper correction, the USD Dollar has halted its decline around 102.3 points. Although the dollar began to strengthen again since the end of November, the increases have stopped at the 38.2% Fibonacci retracement around 104.4 points. Today's publication of the Fed's decision on interest rates and the speech by Chairman Jerome Powell will be crucial in determining the trend for the coming weeks. Source: xStation 5

US500 is trading today around yesterday's closing prices. The index gains a modest 0.05%. However, the quotes remain at 23-month highs, above the local mid-year peak of 4630 points. Definitely, the entire market's attention is focused on the last conference and the FOMC's decision this year. The market will be looking for clues in Chairman Jerome Powell's speech regarding the prospect of the first interest rate cuts. Source: xStation 5

Company news

Pfizer (PFE.US) shares dropped almost 10% after the company projected a revenue decline for 2024, citing reduced demand for its Covid-19 vaccine and related products. The forecasted revenue of $58.5 billion to $61.5 billion falls short of analysts' expectations of $62.66 billion. This downturn is attributed to overestimation of Covid-19 vaccine and drug sales, which had previously boosted Pfizer's performance during the pandemic. The company anticipates around $8 billion in revenue from its Covid-19 vaccine and Paxlovid treatment next year, down from this year's expected $12.5 billion. Amidst this, Pfizer is focusing on growth in operational revenue and has announced a major $43 billion deal for Seagen, aiming to establish a separate cancer-drug business. The company's adjusted earnings forecast for 2024 is also lower than analysts' predictions.

Pfizer's share price today dips to its lowest level since 2013, not including a one-day drop during the Covid-19 pandemic in 2020. Source: xStation 5

Vertex Pharmaceuticals (VRTX.US) experienced a 7.0% increase in premarket trading following the announcement of positive results from a Phase 2 study of VX-548, their investigational non-opioid drug for treating painful diabetic peripheral neuropathy. The study showed a significant and clinically meaningful reduction in pain, as measured by the Numeric Pain Rating Scale. The company highlighted the potential of VX-548 to become a new class of medicine for millions suffering from neuropathic pain. The drug was generally well-tolerated in the study, and Vertex plans to move forward with pivotal development after discussions with regulators.

Source: xStation 5