CBOE's Weekly Market Recap: Nov.14-18 – Biogen's Alzheimer's Drug Captures Investors' Attention

The market has experienced some relief from bearish price action in November, continuing October’s push to usher the SPDR S&P 500 ETF SPY toward $400. 

Individual stocks have seen some relief as well, particularly in the oil & gas, biotechnology and financial sectors, which continue to show bullish action compared to the general market. The current rally is likely influenced by the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports, both of which came in below expectations. This arguably indicates that the Federal Reserve’s monetary tightening policies are starting to work. 

Cboe Global Markets Inc. CBOE reports that all the exchange-traded funds (ETFs) and indices recorded in this series experienced a price decrease last week as the general market experienced a pullback in its short-term uptrend. Britain’s iShares Core DAX UCITS ETF EXS and France’s Lyxor CAC 40 ETF CAC were the two exceptions, both experiencing slight increases in the prior week. 

The cryptocurrency market has largely mirrored its traditional counterparts, experiencing decreases in Bitcoin BTC/USD, Ethereum ETH/USD and Solana SOL/USD — all of which have dropped in value following FTX’s collapse. With uncertainty brimming, Cboe highlights Biogen Inc. BIIB as a chart that may have piqued investor interest following positive clinical trial results for their new Alzheimer’s drug.

Next week will be huge for the fashion retail sector, with many of Wall Street’s top firms reporting earnings. Cboe has compiled a list of earnings for investors to keep an eye on at the bottom of this report. 

Keep scrolling to learn more. 

Quick Bites

Exchange-Traded Funds 

• The SPDR S&P 500 ETF SPY decreased by 0.62% over the previous week.
• The Invesco QQQ Trust Series 1 QQQ decreased by 1.09% over the previous week, mirroring the SPY’s movements.
• The iShares Russell 2000 ETF IWM decreased by 1.70% over the previous week.
• The Cboe Volatility Index™ VIX closed at 23.11 last week, a slight increase over last week.

World Markets

• The iShares Core MSCI Europe ETF IEUR decreased by 0.63% week-on-week.
• The iShares FTSE 100 UCITS ETF ISF increased by 0.95% week-on-week. 
• The Lyxor CAC 40 ETF CAC increased by 0.71% week-on-week. 

Chart Of The Week: BIIB

This photo was taken from the TradingView platform

Shares of Biogen skyrocketed on Sept. 22nd after the company announced positive clinical trial results for their Alzheimer’s drug lecanemab. The company said their drug met all key secondary endpoints with highly statistically significant results.

These results have brought Biogen closer to a Federal Drug Agency (FDA) approved Alzheimer’s drug, a feat several biopharmaceutical companies are competing to achieve. Investors responded enthusiastically to this information. Biogen’s trading volume on the 28th of September hit 7.111 million shares, a 1,500% positive deviation off of the 50-day average trading volume of 331,000. 

The stock’s price slingshotted 50% overnight – rising to $284 a share – and, since then, has drifted toward $300. According to Grand View Research, the Alzheimer’s therapy market was valued at $4.04 billion in 2021 and is expected to grow at a 16.2% compound annual growth rate from 2022 to 2030.

Major Cryptocurrencies

• Bitcoin has decreased by 0.33% since the previous week, consolidating after FTX’s collapse.
• Ethereum has decreased by 6.4% since last week.
• Solana has decreased by 6.91% since last week.

Upcoming Earnings Releases

A number of companies report earnings next week, including: 

Company	Earnings per share (EPS) estimate
Dell Technologies Inc. DELL	$1.61
Zoom Video Communications Inc. ZM	$0.84
Urban Outfitters Inc. URBN	$0.42
Best Buy Co. BBY	$1.03
Helmerich & Payne, Inc. HP	$0.84
Abercrombie & Fitch ANF	-$0.14
Dick’s Sporting Goods Inc. DKS	$2.24
Nordstrom Inc. JWN	$0.15

Click here for more weekly insights by Cboe. 

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Featured photo by Aditya Vyas on Unsplash