Stocks rallied on Friday, with gains seen across the board. The Dow industrials advanced 1.6%, or 654 points, while the Nasdaq gained 1% and the S&P 500 rose 1.1%. Benchmark 10-year Treasury yields slipped 0.057 percentage point to settle just below 4.2%. The Federal Reserve is widely expected to keep rates at current high levels next Wednesday, while opening the door wider for a cut in September.
Not everyone was celebrating. For well over a year now, Dexcom, which makes monitoring devices for diabetes patients, has been trading under a dark Ozempic cloud. Investors have worried that a drug that can bring obesity and type 2 diabetes under control would eventually take a bite out of its earnings. On Friday, Dexcom had its biggest one-day decline ever, plummeting 41%. Dexcom cut its full-year revenue outlook to $4 billion to $4.05 billion, from $4.2 billion to $4.35 billion. DexCom’s chief executive partially attributed the revenue shortfall to being “short a large number of new patients,” compared to what the company had expected.
Bristol Myers Squibb meanwhile seemed to benefit from a mini-rotation into big pharma laggards. The company has underperformed versus other pharma companies as it has struggled to grow past patent expirations. But the drugmaker's quarterly earnings topped expectations amid strong sales of major drugs such as its Opdivo cancer medication. Its stock leaped 11%.
Four influential technology companies are set to report their results during a busy week for earnings next week, after a selloff among the “Magnificent Seven” hit the Nasdaq. Amazon and Apple, two of the so-called “Magnificent Seven,” will report results Thursday after the market closes. They will follow Microsoft, which is scheduled to report Tuesday, and Meta, slated for Wednesday.
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