iShares U.S. Pharmaceutical ETF (ARCA: IHE)

에 대한 최신 뉴스 iShares U.S. Pharmaceutical ETF (ARCA:IHE)

iShares U.S. Pharmaceutical ETF

Healthcare

The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index measures the performance of the pharmaceuticals sector of the U.S. equity market. The underlying index includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund is non-diversified.

Johnson & Johnson

Eli Lilly & Co.

Viatris

Bristol-Myers Squibb Co.

Pfizer, Inc.

Zoetis Inc. [zts]

Royalty Pharma

Catalent, Inc.

Merck & Company Inc.

Intra-Cellular Therapies Inc

iShares US Pharmaceutical ETF

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4월을 마무리하면서, 이번달에 가장 성과가 뛰어난 섹터와 산업 교환 펀드들을 순위화 할 시간이다.



주가를 더 넓은 시각에서 보면, S&amp;P 500 지수는 SPDR S&amp;P 500 ETF 트러스트(NYSE:SPY)로 표현되는 4월에 약 3% 하락하여 4월을 마감했다. 이로써 지난 5개월간 상승 기간이 끝난 셈이다.  



유사하게 Invesco QQQ

월가에 소나기 내린 4월: 우울한 시장에 광업 및 유틸리티 부문이 상승하며 부상

iHeartMedia Inc

According to a report, U.S. healthcare spending grew by 7.5% to $4.9 trillion in 2023. The increase was fueled by higher enrollment in private health plans and expanded use of medical services, driven by legislative changes and post-pandemic rebounds in care utilization.
Healthcare spending accounted for 17.6% of the U.S. economy, outpacing GDP growth of 2.9%. Spending on retail prescription drugs <a target="_blank" href="https://www.healthaffairs.org/doi/full/10.1377/hlthaff.2024.01375" rel="noreferrer noopener">saw</a> the most significant rise, jumping 11.4% to $449.7 billion.
The report attributed this to increased use of medications for obesity and diabetes.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/24/11/41866438/donald-trumps-second-term-could-reshape-us-healthcare-system-with-major-impacts-on-affordable-care-act-and-medicare" rel="noreferrer noopener">Donald Trump&#8217;s Second Term Could Reshape US Healthcare System, With Major Impacts on Affordable Care Act And Medicare</a>
The rapid growth in spending for drugs used to treat diabetes and obesity contributed to faster overall growth in retail prescription drug expenditures and private health insurance and Medicare spending growth.
Hospital care spending rose 10.4% to $1.5 trillion in 2023, marking the fastest growth since 1990. Hospital discharges increased by 1.6%, with Medicare beneficiaries driving higher outpatient service utilization.
Spending on physician and clinical services also climbed by 7.4% to $978 billion, with private insurance and Medicare patients contributing to this rise.
Enrollment in private health insurance grew by 1.6%, adding 3.3 million Americans.
Private insurance spending surged by 11.5%, reaching $1.5 trillion and accounting for 30% of national healthcare expenditures.
Medicare spending grew 8.1% to $1 trillion, representing 21% of total healthcare spending. Medicaid spending, however, grew more slowly at 7.9%, reflecting the end of the COVID-19 public health emergency.
The report also revealed that 92.5% of Americans had health insurance in 2023, up from 92.0% in 2022, underscoring the broader coverage expansion in recent years.
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streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

iShares Trust Dow Jones US Healthcare Sector Index Fund

Your Healthcare Costs are Soaring! US Spending Reached $5 Trillion In 2023 with Major Increase in Obesity and Diabetes Drugs, Hospital Services

Eli Lilly And Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) has achieved a year-to-date (YTD) increase of&nbsp;32.11% as of Friday, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. This&nbsp;surge has had varied effects on several ETFs that hold significant stakes in the pharmaceutical giant. Several ETFs with substantial holdings in Eli Lilly have experienced varied performances during the same period.
What Happened:&nbsp;The&nbsp;iShares U.S. Pharmaceuticals ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>) with a 20.33% allocation to Eli Lilly, reported a YTD gain of 10.89%. Meanwhile, the&nbsp;Roundhill GLP-1 &amp; Weight Loss ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OZEM#NASDAQ">OZEM</a>), holding 15.86% in Eli Lilly, saw a modest YTD increase of 3.74%.
See Also:&nbsp;<a href="https://www.benzinga.com/24/12/42438029/candel-therapeutics-prostate-cancer-therapy-hits-primary-goal-in-late-stage-study-stock-surges-over-100?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Candel Therapeutics Stock Surges Over 100%</a>
Conversely, the&nbsp;Horizon Kinetics Medical ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MEDX#NASDAQ">MEDX</a>), with Eli Lilly making up 16.06% of its portfolio, experienced a YTD decline of 1.56%. Similarly, the&nbsp;Amplify Weight Loss Drug &amp; Treatment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THNR#NYSE">THNR</a>), with a 14.43% exposure to Eli Lilly, also saw its YTD returns decrease by 6.27%.
Lastly, the iShares U.S. Healthcare ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYH#NYSE">IYH</a>), which includes an 11.76% stake in Eli Lilly, recorded a YTD increase of 2.68%.
Buying $1000 In LLY vs. ETFs: If an investor had bought $1000 of LLY stock earlier this year, it would be worth $1,251 today based on a price of $782.35 for Eli Lilly at the time of writing. At the same time, IHE would have been worth $1100 based on a price of $67.11 for iShares US Pharmaceuticals ETF at the time of writing.
Why It Matters: Recently, the company announced a&nbsp;<a href="https://www.benzinga.com/general/biotech/24/12/42421676/eli-lilly-15b-buyback-faces-stiff-resistance-on-the-charts">massive $15 billion share buyback plan</a>&nbsp;and a 15% dividend increase. These strategic moves come as the company enjoys the success of its blockbuster drugs, Mounjaro and Zepbound, despite facing mixed technical signals on the charts.
Moreover,&nbsp;Eli Lilly&nbsp;has been heavily investing in its production capabilities. The company recently announced a&nbsp;<a href="https://www.benzinga.com/24/12/42370795/investments-in-eli-lillys-production-capabilities-reaches-23-billion-with-additional-3-billion-expansion-at-us-facility">$3 billion expansion</a>&nbsp;of its manufacturing facility in Kenosha County, Wisconsin. This expansion is part of a broader $23 billion investment to meet the growing demand for diabetes, obesity, and pipeline medicines, further solidifying its position in the pharmaceutical industry.
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

MEDX

OZEM

Amplify ETF Trust Amplify Weight Loss Drug & Treatment ETF

THNR

Eli Lilly Stock Soars 34.42% YTD: A $1000 Investment Outpaces Returns From These ETFs Holding Mounjaro-Maker Shares

FDA commissioner Robert Califf&#8217;s <a target="_blank" href="https://www.benzinga.com/general/biotech/21/11/24301293/robert-califfs-speedy-confirmation-vote-as-fda-head-likely-delayed-see-why" rel="noreferrer noopener">second term is anticipated</a> to end in 2025, and all eyes are now on who will be the next to take the position after Donald Trump is elected president for the second time.
He was <a target="_blank" href="https://www.fda.gov/about-fda/fda-organization/robert-califf" rel="noreferrer noopener">elected</a> to head the agency in February 2022. Califf was briefly the agency&#8217;s commissioner under the Obama administration beginning in 2016.
At a conference <a target="_blank" href="https://www.youtube.com/live/hQ7rYiJTcmU" rel="noreferrer noopener">hosted</a> by the Friends of Cancer Research, Califf acknowledged the uncertainty President-elect Donald Trump&#8217;s return to the White House raises for the agency workforce.
He is &#8220;disappointed&#8221; about the election&#8217;s outcome. &#8220;I think we just don&#8217;t know what&#8217;s going to happen.&#8221;
At the Tuesday conference, Califf added, &#8220;The gist of this administration, from everything that&#8217;s been said, is that they want to change a lot of things, and how it gets changed depends on who gets appointed into key positions and how the various policies play out.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/24/11/41866438/donald-trumps-second-term-could-reshape-us-healthcare-system-with-major-impacts-on-affordable-care-act-and-medicare" rel="noreferrer noopener">Donald Trump&#8217;s Second Term Could Reshape US Healthcare System, With Major Impacts on Affordable Care Act And Medicare</a>
Asked whether FDA employees are eying the exits, Califf said, &#8220;people are waiting to see.&#8221;
Asked to respond to Robert F. Kennedy Jr&#8217;s statements about clearing FDA groups focused on nutrition and other issues, Califf suggested the agency is limited in addressing issues with the American diet <a target="_blank" href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction" rel="noreferrer noopener">because of Congress</a>.
In an interview Califf said, &#8220;In times of change and chaos, there&#8217;s also opportunity,&#8221; he continued. &#8220;I will just comment, there&#8217;s a lot of things that I bet almost everyone in leadership positions in the health agencies would have liked to have changed but couldn&#8217;t because of the gridlock of various interests that made it difficult to change things.&#8221;
Callif said he believes the FDA is at &#8220;peak performance right now — and we&#8217;ll see what happens as the new team comes in.&#8221;
&#8220;From things that have been said, the change could happen internally or from external decisions made by the administration,&#8221; he said. &#8220;I just think we have to wait and see and have some faith that hard-working, high-quality people are still going to be in place and have support from — I hope — the external regulated community, which given the dynamics is likely to be the most important factor.&#8221;
While Califf hasn&#8217;t officially announced his departure from the FDA, he said today that &#8220;this is not the first time I&#8217;ve ridden out of town after an election.&#8221;
Read Next:
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<li><a href="https://www.benzinga.com/media/24/11/41915397/netflix-reaches-70-million-users-on-ad-supported-plan-boosts-live-sports-ads" target="_blank" rel="noreferrer noopener">Netflix Reaches 70 Million Users On Ad-Supported Plan, Boosts Live Sports Ads</a></li>
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Regulations

PowerShares Dynamic Healthcare Sector Portfolio

FDA Commissioner Califf Candid on Trump's Impact: 'We Just Don't Know What's Going to Happen'

Robert Kennedy Jr. has disclosed President-Elect Donald Trump&#8217;s three-fold directive to him, aimed at transforming the nation&#8217;s health landscape.
What Happened: On Wednesday, Kennedy Jr. took to X to share the tasks Trump has assigned to him. He wrote that Trump asked him to do three things: clean up corruption in health agencies, restore evidence-based science, and end the chronic disease epidemic to make America healthy again.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">President Trump has asked me to do three things: 1. Clean up the corruption in our government health agencies. 2. Return those agencies to their rich tradition of gold-standard, evidence-based science. 3. Make America Healthy Again by ending the chronic disease epidemic. <a href="https://t.co/WHMOsD0CiI">pic.twitter.com/WHMOsD0CiI</a>
&mdash; Robert F. Kennedy Jr (@RobertKennedyJr) <a href="https://twitter.com/RobertKennedyJr/status/1854281809464529384?ref_src=twsrc%5Etfw">November 6, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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See Also: <a href="https://www.benzinga.com/news/large-cap/24/11/41741814/walgreens-agrees-to-100-million-settlement-over-alleged-deceptive-pricing-of-generic-drugs?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Walgreens Agrees To $100 Million Settlement Over Alleged Deceptive Pricing Of Generic Drugs</a>
This announcement comes after Trump&#8217;s previous pledge to give Kennedy <a href="https://www.benzinga.com/news/24/10/41565423/trump-says-robert-kennedy-jr-can-run-wild-on-health-and-food-im-going-to-let-him-go-wild-on-the-medi">full authority over health</a>, food, and medicine issues if he secures a second term. The former President had expressed his intent to allow Kennedy to &#8220;run wild&#8221; on these matters, with the exception of oil.
Kennedy Jr. is known for his contentious views on vaccines and has also been know to speak out regularly on food additives. In the aftermath of the election, shares of pharmaceutical companies, particularly those associated with the COVID-19 vaccine, have slid.
On Wednesday Pfizer Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) and Modern Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) stocks hovered near their 52-week lows of $25.20 and $49.60 respectively. For the day, PFE ended 2.2% lower at $27.36, while MRNA dropped 2.8% to $51.81. The iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>) fell 0.5% to $68.39 in a similar period.
Why It Matters: Kennedy&#8217;s new role and the tasks assigned to him align with Trump&#8217;s earlier statements. In a recent interview, Trump showed tentative support for Kennedy&#8217;s plan to <a href="https://www.benzinga.com/news/24/11/41704387/robert-kennedy-jr-says-he-will-advise-all-us-water-systems-to-remove-fluoride-on-day-1-of-trump-admi">remove fluoride from water</a>, a move aimed at improving public health. Kennedy, known for his health-related advocacies, stated that his administration would encourage all U.S. water systems to eliminate fluoride on its first day in office.
Furthermore, Kennedy had previously disclosed that he might be appointed by Trump to select leaders for <a href="https://www.benzinga.com/news/24/09/40931166/robert-kennedy-jr-trump-wants-him-to-help-pick-cdc-fda-and-nih-leaders-unravel-the-capture-of-agenci">key public health agencies</a>, including the Centers for Disease Control and Prevention, the Food and Drug Administration, and the National Institutes of Health. This latest announcement seems to confirm his involvement in these agencies, marking a significant shift in the country&#8217;s health policies.
Image via Shutterstock
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Politics

MRNA

Trump Has Asked Me To Do 3 Things, Says Robert Kennedy Jr.

The second-quarter results of the healthcare sector have been impressive, with earnings of 78.8% of the sector participants that have reported so far up 17.1% on 7.6% revenue growth. The earnings beat ratio of 85.7% and the revenue beat ratio of 75.5% are also assuring. Combining the actual results with the estimates for the still-to-report companies, the total earnings of the sector are expected to grow 16.6% on revenue growth of 8.5%.
Many industry bigwigs reported solid results, with some beating on earnings or revenues or both. However, the recent market rout has eroded some gains from the sector. As such, pharma ETFs have delivered mixed performances over the past month. iShares U.S. Pharmaceuticals ETF (ARCA:IHE), VanEck Vectors Pharmaceutical ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pph#NASDAQ">PPH</a>), SPDR S&amp;P Pharmaceuticals ETF (ARCA:XPH) and First Trust Nasdaq Pharmaceuticals ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ftxh#NASDAQ">FTXH</a>) have gained 0.3%, 1.1%, 0.07%, and 0.4% respectively, while Invesco Pharmaceuticals ETF (ARCA:PJP) has shed 0.1% in a month.
Let&#39;s delve deeper into the earnings of some of the bigwigs:
<h3>Earnings in Focus</h3>
Johnson and Johnson 
Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>) continued with its long streak of earnings beat and also outpaced revenue estimates. Earnings per share came in at $2.82, beating the Zacks Consensus Estimate of $2.71 and improving 10.2% from the year-ago quarter. Revenues grew 4.3% year over year to $22.45 billion and fell short of the Zacks Consensus Estimate of $22.38 billion. For 2024, Johnson &amp; Johnson maintained its revenue guidance of $88-$88.4 billion, indicating year-over-year growth of 4.7%-5.2%. It lowered adjusted earnings per share guidance from $10.57-$10.72 to $9.97-$10.07. 
Pfizer 
Pfizer (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) topped estimates on both the top and bottom lines. It reported adjusted earnings per share of 60 cents, which beat the Zacks Consensus Estimate of 45 cents per share but declined 11% year over year. Revenues inched up 2% year over year to $13.28 billion and edged past the consensus mark of $13.13 billion. The U.S. drug giant raised its revenue guidance from $58.5-$61.5 billion to $59.5-$62.5 billion and adjusted earnings per share from $2.15-$2.35 to $2.45-$2.65 for 2024. 
Merck 
Merck (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) also topped earnings and revenue estimates. It posted earnings per share of $2.28, which surpassed the Zacks Consensus Estimate of $2.16. In the year-ago period, the company had incurred an adjusted loss of $2.06 per share. Revenues rose 79% year over year to $16.11 billion and edged past the consensus mark of $15.90 billion. Merck lifted the higher end of its revenue guidance from $63.1-$64.3 billion to $63.1-$64.4 billion but lowered the earnings per share guidance to $7.94-$8.04 from $8.53-$8.65. 
Bristol-Myers 
Bristol-Myers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmy#NYSE">BMY</a>) also reported better-than-expected results. It posted an earnings per share of $2.07, outpacing the Zacks Consensus Estimate of $1.64. Earnings came in higher than the year-ago earnings of $1.75. Revenues grew 9% year over year to $12.2 billion and edged past the Zacks Consensus Estimate of $11.5 billion. For 2024, Bristol-Myers now expects revenues to increase in the upper end of the low single-digit range versus the previous guidance of low single digits.&nbsp; It lifted its earnings per share guidance to 60-90 cents from 40-70 cents. 
Eli Lilly and Company 
Eli Lilly and Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) reported robust second-quarter 2024, beating earnings and revenue estimates. Earnings per share came in at $3.92, surpassing the Zacks Consensus Estimate of $2.64 and improving 86% from the year-ago number. Revenues rose 36% to $11.3 billion and edged past the estimated $9.83 billion. Eli Lilly increased its full-year outlook for the second time this year. It raised the revenue guidance to $45.4-$46.6 billion from $42.4-$43.6 billion and the adjusted earnings per share guidance to $16.10-$16.60 from $13.50-$14.00.
<h3>ETF Angle</h3>
iShares U.S. Pharmaceuticals ETF
iShares U.S. Pharmaceuticals ETF provides exposure to 36 U.S. companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. The in-focus five firms are the top holdings in the basket, accounting for a combined 59.4% of the total assets, suggesting heavy concentration. iShares U.S. Pharmaceuticals ETF has $670.8 million in AUM and charges 39 bps in fees and expenses. It carries a Zacks ETF Rank #3 (Hold) with a High risk outlook. 
VanEck Vectors Pharmaceutical ETF
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index and holds 26 stocks in its basket. The five firms collectively account for a 33.6% share in the fund&#39;s basket. The product has amassed $678.1 million in its asset base and charges 36 bps in annual fees. VanEck Vectors Pharmaceutical ETF carries a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
SPDR S&amp;P Pharmaceuticals ETF
SPDR S&amp;P Pharmaceuticals ETF provides exposure to pharma companies by tracking the S&amp;P Pharmaceuticals Select Industry Index. With AUM of $177.9 million, it holds 43 securities, with the in-focus firms making up about 4% share each. SPDR S&amp;P Pharmaceuticals ETF charges 35 bps in fees a year and has a Zacks ETF Rank #3 with a High risk outlook.
Invesco Pharmaceuticals ETF
Invesco Pharmaceuticals ETF offers exposure to companies that are principally engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. It follows the Dynamic Pharmaceuticals Intellidex Index and holds 23 stocks in its basket, with the in-focus firms making up at least 5% share each. Invesco Pharmaceuticals ETF has AUM of about $283.8 million and charges 57 bps in fees and expenses. The ETF has a Zacks ETF Rank #3 with a High risk outlook.
First Trust Nasdaq Pharmaceuticals ETF
First Trust Nasdaq Pharmaceuticals ETF tracks the Nasdaq US Smart Pharmaceuticals Index, holding 50 securities in its basket. The in-focus five firms account for a combined 31.4% of the assets. FTXH has AUM of $18.3 million. First Trust Nasdaq Pharmaceuticals ETF charges 60 bps in annual fees and has a Zacks ETF Rank #3.
<a href="https://www.zacks.com/stock/news/2322190/pharma-etfs-in-focus-post-solid-q2-earnings?cid=CS-BENZ-FT-etf_news_and_commentary-2322190">To read this article on Zacks.com click here.</a>

Earnings

Earnings Beats

Guidance

Analyst Ratings

Trading Ideas

FTXH

Merrill Lynch Pharmaceutical HOLDRs Trust

Pharma ETFs in Focus Post Solid Q2 Earnings

The first-quarter results of the healthcare sector have been unimpressive, with earnings of 78% of the sector participants that have reported so far down 31.2% despite 4.4% revenue growth. The earnings beat ratio of 93.9% and the revenue beat ratio of 75.8% are assuring, though. Combining the actual results with the estimates for the still-to-report companies, the total earnings of the sector are expected to decline 25.1% despite revenue growth of 7.1%. 
However, many industry bigwigs reported solid results, with some beating on earnings or revenues or both. As such, pharma ETFs have delivered mixed performances over the past month. iShares U.S. Pharmaceuticals ETF (ARCA:IHE), VanEck Vectors Pharmaceutical ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pph#NASDAQ">PPH</a>), SPDR S&amp;P Pharmaceuticals ETF (ARCA:XPH) and First Trust Nasdaq Pharmaceuticals ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ftxh#NASDAQ">FTXH</a>) have lost 3.7%,1.9%, 2.9%, and 3.1% respectively, while Invesco Pharmaceuticals ETF (ARCA:PJP) has added 0.8% in a month. 
Let&#39;s delve deeper into the earnings of some of the bigwigs:
<h3>Earnings in Focus</h3>
Johnson and Johnson 
Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>) continued with its long streak of earnings beat but lagged revenue estimates. Earnings per share came in at $2.71, beating the Zacks Consensus Estimate of $2.64 and improving 12.4% from the year-ago quarter. Revenues grew 2% year over year to $21.38 billion and fell short of the Zacks Consensus Estimate of $21.4 billion. For 2024, Johnson &amp; Johnson revised its guidance from $88.2-$89.0 billion to $87.8-$88.6 billion, indicating year-over-year growth of 5.5%-6.0%. The adjusted earnings per share guidance was tightened from $10.55-$10.75 to $10.57 to $10.72. 
Pfizer 
Pfizer (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) topped estimates on both the top and bottom lines. It reported adjusted earnings per share of 82 cents, which beat the Zacks Consensus Estimate of 56 cents per share but declined 33% year over year. Revenues declined 20% year over year to $14.88 billion and fell short of the consensus mark of $13.96 billion. The U.S. drug giant reaffirmed its revenue guidance of $58.5-$61.5 billion and raised its adjusted earnings per share to $2.15-$2.35 from $2.05-$2.25 for 2024. 
Merck 
Merck (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) also topped earnings and revenue estimates. It posted earnings per share of $2.07, which surpassed the Zacks Consensus Estimate of $1.94 and increased 48% from the year-ago earnings. Revenues rose 9% year over year to $15.78 billion and edged past the consensus mark of $15.37 billion. Merck lifted the lower end of its revenue guidance. It now expects revenues in the range of $63.1-$64.2 billion from $62.7-$64.2 billion, while earnings per share are expected in the range of $8.53-$8.65 versus the prior expectation of $8.44-$8.59. 
Bristol-Myers 
Bristol-Myers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmy#NYSE">BMY</a>) also reported better-than-expected results. It posted a loss per share of $4.40, narrower than the Zacks Consensus Estimate of a loss of $4.53 per share. In the year-ago quarter, BMY posted adjusted earnings per share of $2.05. Revenues grew 5% year over year to $11.86 billion and edged past the Zacks Consensus Estimate of $11.46 billion. For 2024, Bristol-Myers expects revenues to increase in the low single digits while earnings per share are expected in the band of 40 cents to 70 cents, down from the earlier estimate of $7.10-$7.40, to reflect the dilutive impact of recent acquisitions and collaborations. 
Eli Lilly and Company 
Eli Lilly and Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) posted mixed first-quarter 2024 earnings, beating earnings estimates but lagging on revenues. Earnings per share came in at $2.58, surpassing the Zacks Consensus Estimate of $2.53 and improving 59% from the year-ago number. Revenues rose 26% to $8.77 billion but fell short of the estimated $8.81 billion. Eli Lilly raised the 2024 revenue guidance to $42.4-$43.6 billion from $40.4-$41.6 billion, while the adjusted earnings per share guidance was upped to $13.50-$14.00 from the prior projection of $12.20-$12.70.
<h3>ETF Angle</h3>
iShares U.S. Pharmaceuticals ETF 
iShares U.S. Pharmaceuticals ETF provides exposure to 34 U.S. companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. The in-focus five firms are the top holdings in the basket, accounting for a combined 59% of the total assets, suggesting heavy concentration. iShares U.S. Pharmaceuticals ETF has $654.8 million in AUM and charges 40 bps in fees and expenses. It carries a Zacks ETF Rank #2 (Buy) with a High risk outlook. 
VanEck Vectors Pharmaceutical ETF 
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index and holds 26 stocks in its basket. The five firms collectively account for a 33.2% share in the fund&#39;s basket. The product has amassed $512.7 million in its asset base and charges 36 bps in annual fees. VanEck Vectors Pharmaceutical ETF carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. 
SPDR S&amp;P Pharmaceuticals ETF 
SPDR S&amp;P Pharmaceuticals ETF provides exposure to pharma companies by tracking the S&amp;P Pharmaceuticals Select Industry Index. With AUM of $197.9 million, it holds 41 securities, with the in-focus firms making up about 4% share each. SPDR S&amp;P Pharmaceuticals ETF charges 35 bps in fees a year and has a Zacks ETF Rank #3 with a High risk outlook. 
Invesco Pharmaceuticals ETF 
Invesco Pharmaceuticals ETF offers exposure to companies that are principally engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. It follows the Dynamic Pharmaceuticals Intellidex Index and holds 24 stocks in its basket, with the in-focus firms making up at least 5% share each. Invesco Pharmaceuticals ETF has AUM of about $270.2 million and charges 57 bps in fees and expenses. The ETF has a Zacks ETF Rank #3 with a High risk outlook. 
First Trust Nasdaq Pharmaceuticals ETF 
First Trust Nasdaq Pharmaceuticals ETF tracks the Nasdaq US Smart Pharmaceuticals Index, holding 50 securities in its basket. The in-focus five firms account for a combined 32.2% of the assets. FTXH has AUM of $19.9 million. First Trust Nasdaq Pharmaceuticals ETF charges 60 bps in annual fees and has a Zacks ETF Rank #2 (Buy).
<a href="https://www.zacks.com/stock/news/2269782/a-look-at-pharma-etfs-post-q1-earnings?cid=CS-BENZ-FT-etf_news_and_commentary-2269782">To read this article on Zacks.com click here.</a>

A Look at Pharma ETFs Post Q1 Earnings

As April comes to a close, it&#8217;s time to compile the rankings for the top-performing sector and industry exchange-traded <a href="https://www.benzinga.com/etfs">funds of the month.</a>
Taking a broader look at the stock market, the S&amp;P 500 Index, represented by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">(FOMC) meeting on Wednesday. </a>
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell&#8216;s remarks to assess the Fed&#8217;s stance in response to recent inflation surprises.
Read also: <a href="https://www.benzinga.com/general/macro-notification/24/04/38491988/federal-reserve-meeting-preview-high-interest-rates-need-more-time-to-work-bank-of-ame">Federal Reserve Meeting Preview: High Interest Rates &#8216;Need More Time To Work,&#8217; Bank of America Says</a>
<h2 class="wp-block-heading">Performance Of Sector ETFs In April 2024</h2>
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities&#8217; performance in April are NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), The Southern Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>), Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) and NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) which showed monthly gains between 4% and 8%. 
Energy stocks remained broadly stable, while the other nine S&amp;P 500&#8217;s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month. 
Following real estate, the technology and healthcare sectors also showed poor performance in April.
<h4 class="wp-block-heading">April&#8217;s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags</h4>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>April 2024 performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>2.06%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>0.01%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-1.11%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-3.23%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>-3.68%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-3.85%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-4.13%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-4.24%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>-4.78%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>-7.83%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 2:50 p.m. EDT</figcaption></figure>
<h2 class="wp-block-heading">Performance Of Industry ETFs In April 2024</h2>
Based on the industry ETF list provided by BlackRock Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains. 
Standout contributors to the mining industry&#8217;s outperformance in April were Pan American Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAAS#NYSE">PAAS</a>), up over 20%, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), up 14%, Anglo American plc (OTCPK: AAUKF), up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI Global Silver and Metals Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLVP#NYSE">SLVP</a>)</td>
<td>12.11%</td>
</tr>
<tr>
<td>iShares Copper and Metals Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>)</td>
<td>9.50%</td>
</tr>
<tr>
<td>iShares MSCI Global Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>)</td>
<td>5.93%</td>
</tr>
<tr>
<td>iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>)</td>
<td>2.81%</td>
</tr>
<tr>
<td>iShares MSCI Global Energy Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FILL#NYSE">FILL</a>)</td>
<td>2.46%</td>
</tr>
<tr>
<td>iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</td>
<td>-1.16%</td>
</tr>
<tr>
<td>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>)</td>
<td>-1.37%</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>)</td>
<td>-1.66%</td>
</tr>
<tr>
<td>iShares Lithium Miners and Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILIT#NYSE">ILIT</a>)</td>
<td>-3.30%</td>
</tr>
<tr>
<td>iShares U.S. Broker-Dealers &amp; Securities Exchange ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAI#NYSE">IAI</a>)</td>
<td>-3.74%</td>
</tr>
<tr>
<td>iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>)</td>
<td>-3.88%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-4.37%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>-4.40%</td>
</tr>
<tr>
<td>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>)</td>
<td>-4.79%</td>
</tr>
<tr>
<td>iShares U.S. Insurance ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAK#NYSE">IAK</a>)</td>
<td>-4.85%</td>
</tr>
<tr>
<td>iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>)</td>
<td>-5.11%</td>
</tr>
<tr>
<td>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>)</td>
<td>-5.38%</td>
</tr>
<tr>
<td>iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>)</td>
<td>-5.45%</td>
</tr>
<tr>
<td>iShares Mortgage Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REM#NYSE">REM</a>)</td>
<td>-5.57%</td>
</tr>
<tr>
<td>iShares U.S. Medical Devices ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHI#NYSE">IHI</a>)</td>
<td>-5.75%</td>
</tr>
<tr>
<td>iShares Global Timber &amp; Forestry ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOOD#NYSE">WOOD</a>)</td>
<td>-6.20%</td>
</tr>
<tr>
<td>iShares Expanded Tech-Software Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGV#NYSE">IGV</a>)</td>
<td>-6.76%</td>
</tr>
<tr>
<td>iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>)</td>
<td>-7.12%</td>
</tr>
<tr>
<td>iShares Biotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NYSE">IBB</a>)</td>
<td>-7.23%</td>
</tr>
<tr>
<td>iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>)</td>
<td>-8.34%</td>
</tr>
<tr>
<td>iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>)</td>
<td>-9.60%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of Apr. 30, 2024 3:15 p.m. EDT</figcaption></figure>
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38497224/ai-data-centers-drive-electricity-demand-goldman-sachs-picks-16-stocks-to-play-the-">AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend</a>
Image generated using artificial intelligence via Midjourney.

iShares S&P Global Timber & Forestry Index Fund

WOOD

April Showers On Wall Street:  Miners, Utilities Emerge As Bright Spots In Gloomy Market

The race for new drugs to fight obesity and associated diabetes and cardiovascular diseases heated up on Monday after positive results from trials by Zealand Pharma were published, pushing the <a href="https://www.benzinga.com/topic/weight-loss">Danish company&#8217;s shares 30% higher</a>.
Zealand Pharma&#8217;s survodutide drug showed positive results in 83% of patients in Phase 2 trials being tested for a liver disease caused by excess fat cells called MASH, the company <a href="https://www.zealandpharma.com/media/zealand-news/">announced</a> on Monday.
&#8220;Survodutide has demonstrated efficacy in people with obesity, and statistically significant results in MASH suggest the potential to lead to clinically meaningful benefits across the cardiovascular, renal, and metabolic spectrum,&#8221; the announcement said.
The blockbuster impact of drugs such as Novo Nordisk&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) Ozempic and Eli Lilly And Company&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) Mounjaro, have driven dozens of companies to research and develop rival weight-loss treatments and further announcements of breakthroughs in the fast-developing market are expected in 2024. 
<h2 class="wp-block-heading">Impact Of Weight-Loss Drugs On Q4 Results</h2>
Currently, they are the main two players. Thanks to its Mounjaro and Zepbound treatments, Eli Lilly crushed analysts estimates for fourth-quarter earnings, <a href="https://www.benzinga.com/markets/equities/24/02/36955955/eli-lilly-soars-on-diabetes-and-obesity-drug-boom-projects-20-revenue-increase-in-2024">reported</a> earlier this month, with a 19% increase in earnings per share to $2.49, beating Street expectations of $2.22.
Upgrades soon followed with analysts from Cantor Fitzgerald and Morgan Stanley raising their price targets on the stock.
Novo Nordisk&#8217;s <a href="https://www.benzinga.com/general/biotech/24/01/36865688/with-bumper-33b-sales-novo-nordisk-forecasts-double-digit-2024-earnings-growth-boosts-lower-dose-">results</a> were similarly impressive, with its Wegovy and Ozempic offerings helping fourth-quarter sales to soar 37% to $9.5 billion, compared with expectations of $8.82 billion.
<h2 class="wp-block-heading">Market To Become More Crowded</h2>
Health and medical information research company Stat, <a href="https://www.statnews.com/2023/09/12/obesity-weight-loss-mounjaro-drug-development/">suggests</a> that around 70 weight loss drugs are currently in development to catch the exploding market — including from large and well-established pharma companies such as AstraZeneca Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>) and Pfizer Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>).
This suggests the early runners, Novo Nordisk and Eli Lilly, will find the space becoming more crowded in the months to come as many newly-developed treatments receive fast-track drug designations from global regulators.
How can they respond? They can certainly make hay while the sun shines — indeed, Novo recently <a href="https://www.benzinga.com/general/biotech/24/02/36931734/ozempic-maker-strikes-11b-deal-with-catalent-as-it-rushes-to-meet-massive-weight-loss-drug-demand">announced the acquisition</a> of Catalent Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTLT#NYSE">CTLT</a>), a New Jersey-based manufacturing facility, so that it can scale up production of Wegovy and Ozempic within their biggest market.
Meanwhile, Eli Lilly has turned its focus to the marketing side of its blockbuster treatments, announcing in January the launch of a new digital health-care platform, LillyDirect, that will offer drugs directly to consumers who have been prescribed the medications. 
Shares in both Novo and Eli Lilly have outperformed broader measures of pharmaceutical stocks. Novo is up 19% so far this year, while Eli Lilly has gained 33%.
The iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>), an exchange traded fund that tracks U.S. pharma companies, is up 12.5% in 2024.
Now Read: <a href="https://www.benzinga.com/markets/equities/24/02/37312557/hallelujah-for-shale-why-warren-buffett-likes-american-oil-companies">&#8216;Hallelujah&#8217; For Shale: Why Warren Buffett Likes American Oil Companies</a>
Photo: Shutterstock

Price Target

CTLT

Eli Lilly, Novo Nordisk's Strategies Against New Weight-Loss Drug Competitors

The fastest easing of financial conditions in history could leave markets offsides if the expected ideal economic scenario fails to materialize, Bank of America warned in a note released on Tuesday.
The bank&#8217;s analysts observed that investors recently adopted a conflicting stance, anticipating more than five Federal Reserve rate cuts and maintaining an excessively <a href="https://www.benzinga.com/topic/inflation">optimistic view on inflation.</a>
Bank of America advised investors to be wary of the bond market&#8217;s relatively dovish position compared to the Federal Reserve. It also raised concerns that Federal Reserve rate cuts in the current year might perpetuate inflationary pressures.
Here are 10 surprises that could affect markets in 2024, according to the bank&#8217;s latest Research Investment Committee (RIC) report: 
<ol>
<li>High Bond Taxes Shifting Focus to Stocks: Investors, initially drawn to the allure of 5% yields in Treasury securities, might pivot to equities due to favorable tax treatments. BofA notes the distinction between a 37% tax on Treasury coupon payments and a 20% tax on long-term stock holdings. </li>
<li>Stable Corporate Landscape Despite 5% Rates: Despite higher default rates, the robustness of corporate debt structures, alongside substantial cash reserves and private credit availability, suggests a low likelihood of a widespread bankruptcy wave. </li>
<li>IPO Market Set for a Comeback: After a sluggish 2023, favorable macroeconomic conditions and interest rate cuts could rejuvenate the IPO market, benefiting large banks, as tracked by the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), and exchanges. </li>
<li>Japan: The Dark Horse of Developed Markets: Masashi Akutsu, BofA&#8217;s Strategist, predicts a 13% upside for Japanese equities, monitored through the iShares MSCI Japan Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>), driven by corporate reforms and attractive valuations compared to U.S. stocks. </li>
<li>Geopolitical Risks Weighing on Tech Giants: The reliance of major tech firms like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) on Taiwanese chipmakers aligns their performance closely with Taiwan Semiconductor Manufacturing Company Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>). Amid rising geopolitical risks in the region, BofA suggests a shift to more balanced equity indices, such as the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>). </li>
<li>Biotech and Pharma Poised for Growth: Following a 2023 dominated by weigh-loss drugmakers, advancements in Alzheimer&#8217;s research could propel the pharmaceutical sector, as tracked via the iShares U.S. Pharmaceutical ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>), to new heights. </li>
<li>Rationalizing Energy Investments: With renewable energy stocks underperforming, investors might turn to more traditional energy sources, recognizing the value in undervalued oil, gas, and nuclear sectors. </li>
<li>The Fragile Path to Low Inflation: Market consensus for a smooth inflation reduction could be upended by various global events, potentially leading to higher inflation scenarios. BofA warns that <a href="https://www.benzinga.com/economics/macro-economic-events/24/01/36451978/wti-crude-oil-prices-soar-on-new-years-kickoff-as-tensions-escalate-in-red-sea-be">disruptions in the Red Sea</a> represent a dangerous threat to the inflation&#8217;s perfect landing scenario that markets are pricing in. </li>
<li>Demand for Premium on Government Debt: Fading confidence in the U.S. government&#8217;s budget sustainability might lead investors to seek higher yields for long-term government bonds. </li>
<li>Renewed Affection for Free Markets: As regulatory burdens remain high, the upcoming U.S. election could spark hopes for a more business-friendly environment, boosting investor confidence in equities.</li>
</ol>
Read Now: <a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36557192/el-salvadors-bitcoin-bet-pays-off-sovereign-bonds-skyrocket-200-challenging-imfs-warnings">El Salvador&#8217;s Bitcoin Bet Pays Off, Sovereign Bonds Skyrocket 200%, Challenging IMF&#8217;s Warning</a>

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Bank Of America Predicts 10 2024 Market Surprises: From Booming IPOs To Japanese Equity Surge

In a recent surge of labor unrest, pharmacy employees from CVS Health Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvs#NYSE">CVS</a>) and Walgreens Boots Alliance, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wba#NASDAQ">WBA</a>) raised&nbsp;their voices by calling out sick or walking out entirely last week.
What Happened: These&nbsp;actions were&nbsp;a protest against what they described as insufficient staffing and escalating job demands, which they believed are compromising the safety of their work environment.
The grassroots movement, known on social media as &quot;Pharmageddon,&quot;&nbsp;is part of a more significant wave of worker activism that has impacted&nbsp;sectors like automotive manufacturing and entertainment.
The protests were&nbsp;primarily driven by nonunion workers and have reportedly affected several pharmacy&nbsp;locations, as <a href="https://www.nytimes.com/2023/11/01/business/cvs-walgreens-pharmacy-workers-protest.html">reported </a>by The New York Times.&nbsp;
Expressing solidarity with the movement, Bled Tanoe, a pharmacist based in Oklahoma City, told the newspaper that she has been&nbsp;actively disseminating information about the walkouts.
Ms. Tanoe, who previously worked for Walgreens and is now employed by a hospital, shared her concerns about the pharmacy chains&#39; longstanding push for increased efficiency at the cost of patient care.
&quot;Pharmacies are not OK,&quot; Ms. Tanoe&nbsp;told The New York Times,&nbsp;emphasizing the potential risks customers face due to the current pressures on pharmacy staff.
While the full scope of the protests is complex to gauge without a union&#39;s coordination, Shane Jerominski has orchestrated actions through his Facebook page&nbsp;The Accidental Pharmacist, the newspaper noted. He reported that a significant number of stores were understaffed&nbsp;and that&nbsp;various pharmacy outlets across states such as New York and Illinois were temporarily closed.&nbsp;
Also Read:&nbsp;<a href="https://www.benzinga.com/pressreleases/23/10/b35527651/biotek-remedys-shines-a-spotlight-on-pharmacists-for-national-pharmacy-week">BioTek reMEDys Shines a Spotlight on Pharmacists for National Pharmacy Week</a>
In response to the protests, Walgreens and CVS&nbsp;minimized their impact, with the latter affirming that its operations have continued without notable disruptions, according to the newspaper.&nbsp;
Rite Aid Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rad#NYSE">RAD</a>) also stated that it was &ldquo;unaware of plans by our pharmacists to participate in this activity.&rdquo;
Pharmacy workers have been assembling online, particularly on Facebook and Reddit, to organize and advocate for improved staffing, compensation&nbsp;and consistent hours for pharmacy technicians. A previous walkout by CVS pharmacists in Missouri partly inspired this collective action.
According to the report, Rebecca Kolins Givan, an associate professor at Rutgers University, pointed&nbsp;out that these issues are symptomatic of a larger trend within healthcare, where profit motives often lead to reduced staffing, resulting in a cycle of worker dissatisfaction and high turnover rates.
In response to the unrest, CVS said it has&nbsp;committed to targeted investments to address these concerns, focusing on scheduling flexibility, recruitment,and training. Walgreens also said it has&nbsp;committed to improving pharmacists&#39; work experiences and &quot;advancing the profession.&quot;
This period of labor protest&nbsp;marks a critical point for workers&#39; rights within the healthcare industry.&nbsp;
Related stocks in the pharmaceutical <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a>, such as Pfizer Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>), may also be impacted by the broader implications of these protests.
Additionally, ETFs like the Health Care Select Sector SPDR Fund (NYSEARCA: XLV) and the iShares U.S. Pharmaceuticals ETF (NYSEARCA: IHE) could see investor sentiment shift as the industry responds to these labor challenges.
Now Read:&nbsp;<a href="https://www.benzinga.com/pressreleases/23/10/35146504/navigating-the-pharmacy-automation-market-trends-and-insights">Navigating the Pharmacy Automation Market: Trends and Insights</a>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Pharmacy Workers Strike At CVS and Walgreens, Echoing Wider Pharma Sector Unrest

The 2022 election was held on Tuesday, Nov. 8. No decision has been made as to who won many of the key battles, including several pivotal seats in the U.S. House of Representatives and U.S. Senate. Here&rsquo;s a look at the latest news and some ETFs that could see wide swings <a href="https://www.benzinga.com/news/22/11/29630414/midterm-results-no-red-wave-in-sight-as-democrats-republicans-fight-out-tight-contests">on the heels of the election</a>.
What Happened: The Democrat party has held a majority in the House of Representatives, and an often tie-breaking lead in the Senate, along with&nbsp;a Democrat president in Joe Biden.
Some financial analysts <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/11/29597625/morgan-stanley-says-the-us-midterm-elections-could-spark-a-rally-in-stocks-heres-ho">have pointed to</a> the positives that could be seen for the market with gridlock and a Republican-led Congress challenging a Democratic president.
At the time of writing, the Associated Press <a href="https://apnews.com/article/2022-midterm-elections-results-954de3200a5467d36ea5f04e4ccbb78f">has </a>called 376 of the 435 seats in the House of Representatives, with 175 Democrats and 201 Republicans. A total of 218 are&nbsp;needed to have a majority. Prior to the 2022 election, the House had 212 Republicans and 220 Democrats.
Related Link: <a href="https://www.benzinga.com/news/22/11/29599251/14-stocks-to-watch-if-donald-trump-announces-2024-presidential-bid-6-for-now-8-for-later">14 Stocks To Watch If Donald Trump Announces 2024 Presidential Bid&nbsp;</a>
ETFs to Watch: <a href="https://www.benzinga.com/money/what-is-an-etf">Exchange traded funds </a>can offer investors exposure to sectors or ideologies with a basket of stocks, instead of investing in just one or two stocks. With the potential of the political makeup of Congress changing, several sectors could be impacted and could offer ideas for ETFs.
The Point Bridge America First ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/maga#BATS">MAGA</a>) was <a href="https://www.benzinga.com/news/20/10/18061030/what-happens-to-the-maga-etf-if-trump-loses-the-presidential-election">launched in 2017</a> and offers exposure to the Republican side of the political spectrum. The ETF <a href="https://www.pointbridgecapital.com/about/">tracks </a>companies in the S&amp;P 500 that make donations to the Republican Party. While not all these companies would stand to benefit from a Republican-led Congress, the ETF is often linked to positive news for the Republican Party or former President Donald Trump. The ETF has the ticker MAGA, which coincides with Trump&rsquo;s acronym &ldquo;Make America Great Again,&rdquo; which was a slogan and rallying cry for Trump in the 2016 and 2020 presidential elections.
The ETF holds 150 stocks and has $15 million in assets under management. The ETF has <a href="https://etfdb.com/etf/MAGA/">returns </a>of -0.6%, +43.7%&nbsp;and +57.4% over the last one year, three years, and five years respectively.
Similar to the America First ETF, the God Bless America ETF (ARCA:YALL) is an ETF that focuses on one side of the political spectrum. The ETF, launched in October 2022, screens out companies that are considered left-leaning&nbsp;politically&nbsp;or have &ldquo;liberal political activism and social agendas.&rdquo; The ETF invests in U.S.-listed companies from various sectors and has $24.2 million in assets under management. The ETF is actively managed.
The iShares Global Clean Energy ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/icln#NASDAQ">ICLN</a>) is an ETF that could be favored by investors if the Democrats keep control of the House and Senate and could see declines of several components under a gridlocked Congress not focused on passing clean energy initiatives. The ETF invests in the clean energy sector.
The ETF has 100 holdings and has $4.9 billion in assets under management. It has returned -10.7%, +21.8% and +18.0% over the last one year, three years and five years respectively.
Like the iShares Global Clean Energy ETF, the Invesco Solar ETF (ARCA:TAN) could benefit from the Democrats keeping control and could see pressure with a Republican-led Congress. The Invesco Solar ETF invests in companies in the solar energy sector on a global scale.
The ETF was launched in 2008 and now has 53 holdings with&nbsp;$2.2 billion in assets under management. The ETF has returns of -27.9%, +6.6% and +25.1% over the last one year, three years, and five years respectively.
Two sectors that could benefit from&nbsp;Republicans leading Congress could be healthcare and pharmaceuticals. Republicans have been&nbsp;against healthcare-for-all initiatives, and haven&#39;t been particularly vocal&nbsp;on cutting drug costs for Americans. The iShares U.S. Pharmaceuticals ETF (ARCA:IHE) was launched in 2006 and holds 43 stocks.
The ETF has $412 million in assets under management,&nbsp;returning&nbsp;-6.2%, +31.3% and +29.0% over the last one year, three years and five years respectively.
What&rsquo;s Next: It could be days before several of the most anticipated election races are decided. Investors will have to wait until it is known which political party has control of Congress and how big of an impact it could have on getting bills passed in the coming two years.
The potential of&nbsp;Trump&nbsp;launching a 2024 presidential campaign and Florida Governor Ron DeSantis announcing an intent to run could also impact many ETFs. Trump and DeSantis are seen as front-runners to become&nbsp;the Republican Party nominee&nbsp;<a href="https://www.benzinga.com/news/22/11/29629422/trump-warns-freshly-re-elected-governor-desantis-against-running-for-president-in-2024-he-could-hurt">in the upcoming&nbsp;election</a>.
Read Next: <a href="https://www.benzinga.com/government/22/11/29597514/control-of-congress-up-for-grabs-in-midterms-12-stocks-to-watch">Control Of Congress Up For Grabs In Midterms, 12 Stocks To Watch&nbsp;</a>
Photo: Courtesy of shutterstock.com

iShares S&P Global Clean Energy Index Fund

ICLN

MAGA

YALL

5 ETFs To Watch After 2022 Midterm Elections: Which Sectors Win From Republican Or Democrat Majority?

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From Sohn Conference: Larry Robbins Recommends Shorting A Pharma ETF, But Doesn't Specifically Mention 1 ETF; BZ NOTE: The SPDR S&P Pharma ETF Is Ticker 'XPH'

Total earnings for <a href="https://www.zacks.com/ZER/zer_get_pdf.php?r=H0170834233&amp;ADID=ZP_Article_EarningsTrends">95.3%</a> of the total healthcare market capitalization are up 7.6% on revenue growth of 4.6%. Though earnings growth appears solid compared with many other sectors, earnings and revenue beat ratios of 72.5% and 58.8%, respectively, look disappointing.
	Among the most notable players, Johnson &amp; Johnson JNJ was the first major drug company to report earnings on Oct 17, followed by Eli Lilly and Company LLY and Bristol-Myers Squibb Company BMY on Oct 24 and Oct 26, respectively. Two other major U.S. drug companies, Merck MRK and Pfizer PFE, reported on Oct 27 and Oct 31, respectively. These industry primes posted solid results with either earnings or revenue beats or both.
	Johnson and Johnson Earnings in Focus
	The world&#39;s biggest maker of healthcare products continued its long streak of earnings beat. Earnings per share came in at $1.90, 10 cents ahead of the Zacks Consensus Estimate and 13.1% higher than the year-ago quarter. Revenues grew 10.3% year over year to $19.65 billion and edged past the Zacks Consensus Estimate of $19.28 billion. Johnson &amp; Johnson raised its full-year earnings per share guidance to $7.25-$7.30 from $7.12-$7.22 and revenue guidance to $76.1-$76.5 billion from $75.8-$76.1 billion (read: <a href="https://www.zacks.com/stock/news/279372/healthcare-etfs-in-focus-on-johnson-amp-johnson-q3-earnings">Healthcare ETFs in Focus on Johnson &amp; Johnson Q3 Earnings</a>).
	Pfizer Earnings in Focus
	The U.S. drug giant came up with an earnings beat and in-line revenues. Earnings per share of 67 cents came in a couple of cents above the Zacks Consensus Estimate while revenues of $13.7 billion were in line with the estimate of $13.17 billion. On a year-over-year basis, earnings per share and revenues rose 10% and 1%, respectively. For 2017, Pfizer narrowed the revenue guidance range to $52.4-$53.1 billion from $52-$54 billion while raised the earnings per share guidance range to $2.58-$2.62 from $2.54-$2.60.
	Merck Earnings in Focus
	Merck beat the earnings estimate while missed on revenues. Earnings per share came in at $1.11, surpassing the Zacks Consensus Estimate of $1.03 and improving 3.7% from the year-ago quarter. Revenues declined 2% year over year to $10.33 billion and were below the Zacks Consensus Estimate of $10.51 billion. Merck raised its revenue guidance to $40-$40.5 billion from $39.4-$40.4 billion and earnings per share guidance to $3.91-$3.97 from $3.76-$3.88 for this year.
	Bristol-Myers Earnings in Focus
	Bristol-Myers missed on earnings while beats on revenues. It reported earnings per share of 75 cents, a couple of cents below the estimate. Revenues grew 7.1% to $5.25 billion and edged past the Zacks Consensus Estimate of $5.19 billion. The company raised its earnings per share guidance to $2.95-$3.05 from $2.90-$3.00 (see: <a href="https://www.zacks.com/funds/etfs/etf-categories/Health-Care-ETFs-13">all the Healthcare ETFs here</a>).
	Eli Lilly Earnings in Focus
	Eli Lilly topped the Zacks Consensus Estimate on both fronts. Earnings of $1.05 outpaced the Zacks Consensus Estimate by couple of cents and came in 19% higher than the year-ago quarter. Revenues grew 9% to $5.66 billion and beat the $5.52-billion estimate. Like other drug makers, Eli Lilly also raised its 2017 revenue and earnings guidance. It now expects revenues in the range of $22.4-$22.7 billion compared with the previous expectation of $22.0-$22.5 billion and earnings per share in the range of $4.15-$4.25 versus $4.10-$4.20 expected previously.
	ETF Angle
	The string of earnings beat failed to boost pharma ETFs as they saw rough trading over the past one month. Below, we have highlighted these in detail. These funds have a Zacks ETF Rank #3 (Hold) with a High risk outlook:
	PowerShares Dynamic Pharmaceuticals Fund PJP
	This is by far the most popular choice in the pharma space that follows the Dynamic Pharmaceuticals Intellidex Index. The product has AUM of about $663.7 million and sees a lower volume of around 52,000 shares a day. The fund charges 56 bps in fees and expenses. Holding 30 stocks, the fund invests around 22.8% share in the in-focus five firms. The ETF has lost 6% in a month.
	iShares U.S. Pharmaceuticals ETF IHE
	This ETF provides exposure to 42 pharma stocks by tracking the Dow Jones U.S. Select Pharmaceuticals Index. The in-focus firms are the top five holdings in the basket accounting for a combined 40.3% of total assets, suggesting heavy concentration. The product has $594.5 million in AUM and charges 44 bps in fees and expense. Volume is light as it exchanges about 19,000 shares a day. The fund has shed 6% in a month (read: <a href="https://www.zacks.com/stock/news/282089/what-lies-in-store-for-pharma-etfs">What Lies in Store for Pharma ETFs?</a>).
	SPDR S&amp;P Pharmaceuticals ETF XPH
	This fund provides exposure to the pharma companies by tracking the S&amp;P Pharmaceuticals Select Industry Index. With AUM of $396.6 million, it trades in a good volume of around 90,000 shares a day and charges 35 bps in fees a year. In total, the product holds 39 securities with the in-focus five firms taking nearly 5% share each. The product was down 7% in the same period.
	VanEck Vectors Pharmaceutical ETF PPH
	This ETF follows the MVIS US Listed Pharmaceutical 25 Index and holds 26 stocks in its basket. Johnson &amp; Johnson, Pfizer, Bristol-Myers, and Eli Lilly accounts for at least 5% share each while Merck makes up for 4.4% of assets. The product has amassed $262.4 million in its asset base and trades in a moderate volume of about 67,000 shares a day. Expense ratio comes in at 0.35%. The fund has lost 5.9% in a month. 
	&nbsp;<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/pharma etf.jpg" style="width: 620px; height: 252px;" />
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Pharma ETFs Down Post Q3 Earnings

We are halfway through 2017 and pharma stocks have recovered nicely with their performance representing a sharp contrast to 2016 when the sector was under immense pressure due to the drug pricing issue. Another factor that weighed on pharma stocks last year was the noticeably lower number of FDA approvals. 2016 saw only 22 treatments gaining FDA approval, well below 45 approvals in 2015 and 41 in 2014. The industry was also hit by some high profile R&amp;D failures as well as mixed results, slower-than-expected new product launches and increasing competition.
&nbsp;
However, the sector has fared better this yearand the NYSE ARCA Pharmaceutical Index is up 10.1% year-to-date (YTD). New product sales ramp up, R&amp;D success and innovation, strong results, a higher number of FDA approvals and continued strong performance from legacy products are some of the factors that could contribute to a sustained recovery in the sector. Tax reforms and cash repatriation would support a recovery as well. (Read: <a href="https://www.zacks.com/stock/news/266090/forget-big-tech-biotech-etfs-are-soaring-higher">Forget Big Tech; Biotech ETFs are Soaring Higher</a>)
&nbsp;
Importantly, investors now seem to be more comfortable with the drug pricing scenario and are willing to look at the fundamentals of the sector. Although the drug pricing issue will remain a headwind this year as well, expectations are that steps taken by the Trump administration to drive down drug prices will not be as draconian as previously expected.&nbsp;
&nbsp;
Deregulation and increased competition seem to be some of the ways that will be used to control drug prices. FDA Commissioner Scott Gottlieb recently said that the agency is working on a plan to lower healthcare costs by speeding up the development of next-generation treatments, especially for rare diseases or targeted cancer therapies.
&nbsp;
Faster Drug Approval Process?
&nbsp;
At a meeting with pharma majors earlier this year, President Trump spoke about speeding up the FDA approval process. The President said that the FDA will be streamlined and the drug approval process will be much faster. The 21st Century Cures Act is a step in this direction.
&nbsp;
With the passing of this Act, expectations are that there will be more innovation in the sector and, maybe, a surge in new drug approvals. According to an IMSQuintiles report, the late-phase R&amp;D pipeline for the industry indicates that there should be about 40-45 new brand launches every year through 2021.
&nbsp;
Meanwhile, the FDA has already surpassed last year&#39;s total tally with 23 drugs being approved so far in 2017. &nbsp;(Read: <a href="https://www.zacks.com/stock/news/266846/how-to-build-a-winning-etf-portfolio-for-secondhalf-2017">How to Build a Winning ETF Portfolio for Second-Half 2017</a>)
&nbsp;
Will M&amp;As Pick Pace?
&nbsp;
There has been a lot of consolidation in the pharma industry over the last few years with quite a few deals being announced/completed in 2016. Expectations are high that M&amp;As will increase as the year progresses -- potential tax reform and cash repatriation are expected to lead to a boost in this area. While not too many deals have been announced so far in 2017, we could see several M&amp;A agreements being announced in the coming quarters though companies are wary of bidding wars leading to over-priced deals.
&nbsp;
Companies with innovative technologies and pipelines are highly sought after. Niche disease areas like nonalcoholic steatohepatitis (NASH), immuno-oncology and multiple sclerosis are in demand. Treatments for orphan diseases are also much sought after with quite a few deals being signed in these areas. (Read: <a href="https://www.zacks.com/stock/news/266243/best-leveraged-etfs-of-first-half-of-2017">Best Leveraged ETFs of First Half of 2017</a>)
&nbsp;
Innovative Pipelines &amp; Catalyst Rich 2017 
&nbsp;
Pharma companies continue to work on bringing innovative new treatments to market, and there could be significant catalysts in the coming quarters in the form of important new product approvals as well as major data read-outs especially in key therapeutic areas like immuno-oncology, Alzheimer&#39;s, central nervous system disorders, and immunology/inflammation.
&nbsp;
Cancer remains a key focus area. According to IMSQuintiles, 68 new cancer drugs were approved for 22 indications from 2011 to 2016 while worldwide costs for cancer therapeutics and supportive care drugs shot up from $91 billion in 2012 to $113 billion in 2016. More than 600 molecules are in late stage development with the majority being targeted therapy.
&nbsp;
Meanwhile, sales of products that gained approval over the last two years as well as line extensions should ramp up and boost growth.
&nbsp;
Pharma ETFs in Focus
&nbsp;
Highlighted below are some pharma ETFs - ETFs present a low-cost and convenient way to get a diversified exposure to the sector.
&nbsp;
Powershares Dynamic Pharmaceuticals ETF (ETF:PJP)
&nbsp;
PJP, launched in Jun 2005 by Invesco PowerShares, tracks the Dynamic Pharmaceuticals Intellidex Index. The fund covers healthcare stocks. The top 3 holdings include Celgene Corporation (5.24%), Amgen Inc. (5.14%) and AbbVie Inc. (5.01%). The total assets of the fund as of Jul 6, 2017 were $742.1 million representing 30 holdings. The fund&#39;s expense ratio is 0.57% while dividend yield is 0.81%. The trading volume is roughly 53,041 shares per day.
&nbsp;
SPDR S&amp;P Pharmaceuticals ETF (ETF:XPH)
&nbsp;
XPH, launched inJun 2006, tracks the S&amp;P Pharmaceuticals Select Industry Index. This ETF primarily covers pharma stocks with the top 3 holdings being Akorn, Inc. (5.27%), Jazz Pharmaceuticals plc (5.19%), and Endo International, plc (4.7%).
&nbsp;
Total assets as of Jul 6, 2017 were $458.5 million representing 38 holdings. The fund&#39;s expense ratio is 0.35% and dividend yield is 0.62%.The trading volume is roughly 58,019 shares per day.
&nbsp;
iShares U.S. Pharmaceuticals (ETF:IHE)
&nbsp;
IHE, launched in May 2006, seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Pharmaceuticals Index. The fund mainly consists of pharma companies (89.8%). Biotech companies account for about 10.1% of the fund.
&nbsp;
The top 3 holdings of this fund are Johnson &amp; Johnson (9.95%), Pfizer Inc. (8.21%) and Merck &amp; Co. Inc. (7.58%). The total assets of the fund as of Jul 6, 2017 were $693.7 million representing 41 holdings. The fund&#39;s expense ratio is 0.44% with the dividend yield being 1.25%. The trading volume is roughly 19,527 shares per day.
&nbsp;
Market Vectors Pharmaceutical (ETF:PPH)
&nbsp;
PPH was launched in Dec 2011 and tracks the Market Vectors U.S. Listed Pharmaceutical 25 Index. This ETF covers healthcare stocks. While the expense ratio is 0.35%, dividend yield is 1.95%. The trading volume is roughly 39,357 shares per day. The total assets of the fund as of Jul 6, 2017 were $276.8 million representing 26 holdings. The top 3 holdings of this fund are Johnson &amp; Johnson (8.63%), Novartis AG (6.4%) and AbbVie Inc. (5.17%).
&nbsp;
Conclusion
&nbsp;
Although fears regarding the drug pricing issue have waned, it will nevertheless remain a headwind until the Trump administration comes out with a policy for controlling drug prices. Meanwhile, increased pipeline visibility and appropriate utilization of cash should increase confidence in the sector.
&nbsp;
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What Lies Ahead For Pharma ETFs In Second Half 2017

After being the worst-performing sector in the S&amp;P 500 last year, healthcare is rebounding nicely in 2017. With broader measures of the healthcare sector up about 9 percent year-to-date, however, investors should be selective when searching the sector for value opportunities.
Of course, there are policy concerns <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/03/9177808/that-was-fast-healthcare-etf-races-to-new-highs">for the healthcare sector</a>, not the least of which include the effort to repeal the Affordable Care Act. However, the Republican effort to rollback the ACA could take months or even drag into next year. With 2018 being a mid-term election year, the idea could take a backseat as politicians seek reelection.
In the meantime, healthcare is underowned by professional investors.
The broader healthcare sector is attractively valued relative to broader gauges of global equities, but investors can find compelling value with industry exchange traded funds such as the iShares U.S. Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>).
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/03/9132622/oppenheimer-bullish-on-entire-biotech-sector">Oppenheimer Bullish On Entire Biotech Sector</a>
&ldquo;Is health care a buy? We think a selective approach is appropriate,&rdquo; BlackRock said <a href="https://www.blackrockblog.com/2017/04/03/health-care-stocks/">in a recent note</a>. &ldquo;Health care has a lower stock correlation than other sectors, reflecting variations in innovation cycles, drug patents and pipelines. That dynamic reinforces the importance of selecting winners and avoiding losers.&rdquo;
The $714.4 million IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index and holds 40 stocks. IHE devotes about 26 percent of its combined weight to Dow components Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Merck &amp; Co. (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>).
&ldquo;Health care stocks have historically traded at a premium to the broader equity market, partly reflecting their growth characteristics and popularity as a source of income,&rdquo; said BlackRock. &ldquo;Yet today some sub-industries such as biotech sell at a discount. Many trade near the bottom of their historical valuation range.&rdquo;
Like the broader healthcare sector, pharmaceuticals stocks currently sport valuations against global equities that are <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/02/8993826/a-bull-call-on-a-marquee-healthcare-etf">at the lower end of historical averages</a>. The same is true of biotechnology stocks. The iShares Nasdaq Biotechnology ETF (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>), the largest biotech ETF, is up almost 10 percent year-to-date.
Healthcare, the S&amp;P 500&#39;s third-largest sector weight, is one of just three sectors expected to trade at a discount to the benchmark U.S. equity gauge this year.

Long Ideas

There Is Value To Be Had With The Right Healthcare ETFs

Pharmaceutical investors could breathe a sigh of relief after <a href="http://www.benzinga.com/topic/donald-trump">Donald Trump</a> won the race to the White House, at least according to <a href="http://www.benzinga.com/topic/alex-arfaei">Alex Arfaei</a> of BMO Capital Markets.
Arfaei commented in a research report on Wednesday that a Trump presidency, coupled with a Republican Congress and the apparent defeat of <a href="http://www.cnbc.com/2016/11/07/californias-very-expensive-drug-price-battle-prop-61-fight-gets-even-nastier.html">Proposition 61 in California</a> are all factors that support the pharmaceutical industry.
Arfaei continued that the pharmaceutical space will be characterized by the following:
<ol>
<li>Lower drug pricing pressures.</li>
<li>The potential repeal of the Affordable Care Act ("Obamacare") with more industry friendly reforms.</li>
<li>Increased probability of lower corporate tax rates.</li>
<li>Profit repatriation.</li>
</ol>
<h3>Drug Pricing Pressures</h3>
Hillary Clinton campaigned on targeting drug prices, but her defeat in the election now makes her proposals much less likely.
<h3>Obamacare</h3>
Trump campaigned to repeal Obamacare and replace it with reforms that follow free market principles.
While the Republicans may or may not be successful in actually repealing Obamacare &mdash; and it is uncertain what it would be replaced with &mdash; chances are likely it will be replaced with reforms that are friendly to the pharmaceutical industry.
<h3>Corporate Tax Rates</h3>
The analyst views Trump&#39;s plans to lower corporate tax rates from 35 percent to 15 percent as being favorable for the pharmaceutical industry. In addition, Trump&#39;s proposals of allowing companies to repatriate foreign cash at a one-time 10 percent tax rate will result in increased capital returns to shareholders through dividends and share buybacks.
<h3>Top Pick</h3>
Arfaei concluded that the U.S. election should be viewed as positive for the entire pharmaceutical universe, particularly for Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>).
<h3>At Last Check ...</h3>
<ul>
<li>iShares Dow Jones US Pharm Indx (ETF) (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>) was up 5.5 percent at $143.29.</li>
<li>iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) is up 7.47 percent at $281.16.</li>
<li>Pfizer was up 6.33 percent at $31.90.</li>
<li>SPDR S&amp;P Biotech (ETF) (NYSE: <a class="ticker" href="/stock/xbi#NYSE">XBI</a>) was up 8.31 percent at $62.59.</li>
<li>SPDR S&amp;P Pharmaceuticals (ETF) (NYSE: <a class="ticker" href="/stock/xph#NYSE">XPH</a>) was up 5.31 percent at $40.23.</li>
</ul>

Legal

Movers

Last Night's Election - A Series Of Fortunate Events For Big Pharma

Some investors know about the &ldquo;Dogs of the Dow&rdquo; strategy, which advocates buying the 10 highest-yielding of the blue-chip index at the end of the year and hold those names for a year.
Historical data suggest <a href="http://www.cnbc.com/2015/12/22/this-timeless-strategy-could-work-in-2016-technician.html">the strategy works</a>. So, with the fourth quarter here, now may be a good time for investors to consider some dogs among exchange-traded funds.
In a recent research note, BlackRock, Inc. (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>), parent company of iShares, the world&#39;s largest ETF issuer, examines <a href="https://www.blackrock.com/investing/insights/equities/opportunities-in-etf-losers">an ETF dogs strategy</a>.
<h3>Pedigree Lineup</h3>
Looking at the 25 worst-performing members of the expansive iShares lineup as of Sept. 30, investors will notice some obvious themes, notably the presence of ex-U.S. developed markets ETFs on the list of slack performers.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8299150/terms-of-the-trade-dogs-of-the-dow-investing-strategy">Terms Of The Trade: Dogs Of The Dow Investing Strategy</a></bzrelatedlink>
Sixteen (16) of the 25 ETFs on the BlackRock list are ex-U.S. developed markets funds. Underscoring the point that dollar weakness has been a major headwind for currency hedged ETFs this year, six of the 25 iShares dogs are currency hedged funds.
&ldquo;Because ETFs hold bundles of securities, you can still keep your focus narrow &mdash; there&#39;s an ETF for almost any market segment you can think of &mdash; while helping to diversify your risk,&rdquo; notes BlackRock. &ldquo;Finally, rather than automatically rebalancing once or twice a year, it&#39;s important to recognize that an ETF &#39;story&#39; may unfold over a different horizon &mdash; potentially demanding patience and fortitude.&rdquo;
<h3>Not Too Crowded In The Winners' Circle</h3>
Indeed, it could take a while for some ETF dogs to shed that ominous label while others have the potential to do so much faster. The iShares Nasdaq Biotechnology Index (ETF) (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) and the iShares Dow Jones US Pharm Indx (ETF) (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>), two of the 25 dogs, have been dragged lower by election year rhetoric, but as markets reconcile a likely victory by Hillary Clinton, the healthcare sector offers rebound potential.
<h3>Laggin', Draggin' Pups</h3>
At the other end of the spectrum, the iShares Currency Hedged MSCI Italy ETF (NYSE: <a class="ticker" href="/stock/hewi#NYSE">HEWI</a>) the worst-performing member of the iShares dogs list of September 30, likely has its work cut out for it after losing nearly 20 percent through the first nine months of the year.
Not only do currency hedged ETFs need the dollar to rise, but HEWI&#39;s dog status could prove harder to erase because of the fragility of Italy&#39;s banking and the massive debt burden facing the eurozone&#39;s fourth-largest economy. Those are significant problems that will take a long time, to put it delicately, to work through.
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Short Ideas

Eurozone

Currency ETFs

Psychology

HEWI

Looking For ETF Dogs That Will Hunt

The strongest catalysts for a pharma stock are the various milestones on the road to FDA approval for new drugs. For new investors, they&rsquo;ll often see a stock rise astronomically, but, when they go to make sense of the reasons for the jump, they&rsquo;re greeted with unfamiliar acronyms.
Let&rsquo;s try to make some sense of them and the process a new drug goes through before approval.
<h3>Phase Trials</h3>
One news item that regularly affects the price of a stock is the different phase studies, of which there are three, aptly called Phase 1, Phase 2 and Phase 3.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/general/biotech/16/09/8500542/drug-price-bubble-a-result-of-decade-long-economic-policy-issues">Drug Price Bubble A Result Of Decade-Long Economic Policy Issues</a></bzrelatedlink>
<ul>
<li>Phase 1 is to determine the safety and dosage of a new drug. It typically takes several months. About 70 percent of drugs move past this Phase and onto the next, according to the FDA.</li>
<li>Phase 2 is to determine the efficacy and side effects of a new drug. This can take several months to two years. According to the FDA, about a third of drugs studied are able to make it past Phase 2 studies.</li>
<li>Phase 3 studies can take one to four years and are designed to determine the efficacy of the drug as well as monitoring the adverse reactions to the drug. According to the FDA, between 25 and 30 percent of new drugs are able to make it past Phase 3.</li>
</ul>
The milestones a drug hits as it passes through these three discrete phases often act as catalysts for the price of the company&rsquo;s stock, as well as the next step.
<h3>New Drug Application (NDA)</h3>
The company has enough information on its new drug to complete and submit a New Drug Application (NDA). Since 1938, every drug in United States hospitals and pharmacies has had a New Drug Application (NDA) submitted and approved.
According to the FDA, each NDA must show three things:
<ul>
<ol>
<li>The drug is &ldquo;safe and effective in its proposed uses,&rdquo; with the benefits outweighing the risks.</li>
<li>The labeling is appropriate and contains all necessary warnings, side effects and ingredients.</li>
<li>The manufacturing process and the &ldquo;controls used to maintain the drug&rsquo;s quality&rdquo; (i.e., capsules, packaging) are able to effectively preserve the drug&rsquo;s &ldquo;identity, strength and purity.&rdquo;</li>
</ol>
</ul>
&ldquo;The documentation required in an NDA is supposed to tell the drug&#39;s whole story,&rdquo; according to the FDA website, &ldquo;including what happened during the clinical tests, what the ingredients of the drug are, the results of the animal studies, how the drug behaves in the body, and how it is manufactured, processed and packaged.&rdquo;
<h3>PDUFA Panel</h3>
The Prescription Drug User Fee Act (PDUFA) was originally passed in 1992 with the purpose of providing greater funding for reviewers so that more applications could be reviewed. The acronym is most often heard in reference to PDUFA dates or the amount of time the FDA has to review an application and either approve or deny it &mdash; typically ten months.
Sometimes, the FDA will give a drug a priority designation, which brings the PDUFA date from ten months to six, essentially fast-tracking the process and shortening the amount of time before a drug can hit the market.
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Education

GNRX

Getting Into The Drug Business: From NDAs To PDUFA Dates

Radio frequencies frequently emitted by cellphones can cause cancer, according to partial findings of a government study on rats, reported the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a>.
The National Toxicology Program (NTP) has carried out extensive toxicology and carcinogenesis <a href="http://biorxiv.org/content/early/2016/05/26/055699.full.pdf">studies of radiofrequency radiation (RFR)</a> in rats over multiple years. The studies involved observing the effects of frequencies and modulations found in the U.S. telecommunications industry on the rodents, paying particular attention to the potential of cancer-cell developments.
<h3>The Study</h3>
The peer-reviewed study found "the occurrences of two tumor types in male Harlan Sprague Dawley rats exposed to RFR (radiofrequency radiation), malignant gliomas in the brain and schwannomas of the heart," according to <a href="http://www.nbcnews.com/health/health-news/possible-cellphone-link-cancer-rat-study-launches-new-debate-n581621">the research team</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/16/05/8040684/astrazeneca-remains-committed-to-development-of-zs-9-despite-letter-from-fda">AstraZeneca Remains Committed To Development of ZS-9 Despite Letter From FDA</a></bzrelatedlink>
"Given the widespread global usage of mobile communications among users of all ages, even a very small increase in the incidence of disease resulting from exposure to [radio-frequency radiation] could have broad implications for public health," the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a> quoted a report of partial findings from the study.
Under these studies, rats and mice were exposed to radio-frequency "with two signal modulations [Code Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM)] at two frequencies (900 MHz for rats and 1900 MHz for mice)," the <a href="http://biorxiv.org/content/biorxiv/early/2016/05/26/055699.full.pdf">NTP</a> wrote.
The study also found that "the tumors in the brain and heart observed at low incidence in male rats exposed to GSM and CDMA-modulated cell phone RFR in this study are of a type similar to tumors observed in some epidemiology studies of cell phone use."
"All RF exposures were conducted over a period of approximately 18 hours using a continuous cycle of 10 minutes on (exposed) and 10 minutes off (not exposed), for a total daily exposure time of approximately 9 hours a day, 7 days/week," according to the study.
<h3>What Does It All Mean?</h3>
"Where people were saying there's no risk, I think this ends that kind of statement," the <a href="http://www.wsj.com/articles/cellphone-cancer-link-found-in-government-study-1464324146">Wall Street Journal</a> report said, quoting Ron Melnick, who ran the NTP project until his retirement in 2009.
The Journal said, "It's not clear how the results may impact the government's cellphone safety recommendations."
"Scientific evidence always informs FCC rules on this matter," an FCC spokesman told the Journal. "We will continue to follow all recommendations from federal health and safety experts including whether the FCC should modify its current policies and RF exposure limits."

Wall Street Journal

BIIB

First Trust NYSE Arca Biotechnology Index Fund

iShares Trust S&P Global Healthcare Sector Index Fund

Government Study: Cellphone Radiation Linked To Cancer

Last week was an eventful one, but one that did produce big weekly moves in either direction for the major U.S. equity indexes.

	&quot;For October, all three major indexes posted their biggest percentage increases since October 2011, with the S&amp;P 500 rising 8.3 percent, led by energy and materials,&quot; <a href="http://finance.yahoo.com/news/stock-futures-higher-exxon-chevron-113240704.html?l=1">Reuters</a>&nbsp;reported.&nbsp;

	Translation: The Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) and the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) finished October with monthly gains of 10.9 percent and 12.2 percent, respectively. Let that sink for a minute because for as impressive as those showings were for XLE and XLB, those ETFs are still 10.4 percent year-to-date, making them two of the worst-performing sector SPDR ETFs. XLE is the worst with a 2015 loss of 14.1 percent.
<h3>
	Consumer Discretionary?</h3>

	Keeping with the theme of sector funds, as prosaic as it sounds, the time could be right for the Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>). Classic seasonal trends could bolster what is already this year&#39;s top-performing member of the SPDR suite. As noted on Friday, XLY is home to several of this year&#39;s <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5951718/a-leading-sector-etf-for-november">best-performing Dow stocks</a>.

	Related Link: <a href="http://www.benzinga.com/news/earnings/15/11/5953939/high-hopes-for-facebook-disney-earnings-this-week">High Hopes For Facebook, Disney Earnings This Week</a>
<h3>
	Insurance</h3>

	It feels like earnings season is winding down, but one look at next week&#39;s earnings calendar proves otherwise. Some other sector funds will take their turns in the earnings limelight in the week ahead. The iShares U.S. Insurance ETF (NYSE: <a class="ticker" href="/stock/iak#NYSE">IAK</a>) is not a bad place to start as a fair amount of insurance providers step into the earnings confessional. Additionally, IAK is worth monitoring because insurance companies are sensitive to interest rates, in a positive way, so if Treasury yields climb, so should this ETF.
<h3>
	Oil&amp; Gas</h3>

	Fresh off an October gain of 11.4 percent, the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE: <a class="ticker" href="/stock/xop#NYSE">XOP</a>) will also see some earnings tests in the week ahead. Hint: Those reports are likely to reveal a lot of cost-cutting and downbeat commentary about the current state of the energy sector. The good news is, markets have <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5939541/how-to-play-oils-short-lived-rally">priced most of that in</a>.

	The iShares U.S. Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>) might be worth watching for the duration of November as Pfizer Inc. (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Allergan Plc (NYSE: <a class="ticker" href="/stock/agn#NYSE">AGN</a>) work towards a marriage. As <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5949034/these-etfs-should-love-the-pfizer-allergan-news">Benzinga noted last week</a>, IHE has one of the largest combined weights to those two stocks of any ETF. Media reports out Friday indicate the two companies want to finalize a deal by Thanksgiving.

	Here&#39;s a fun fact that could reveal some clues about the level of risk appetite currently being displayed by investors while potentially also revealing clues about what to expect in the coming weeks: Of last week&#39;s 20 top-performing non-leveraged ETFs, 19 either energy, healthcare or Internet funds and all of those funds were up at least 2.9 percent on the week.

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iShares U.S. Pharmaceutical ETF

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에 대한 최신 뉴스 iShares U.S. Pharmaceutical ETF (ARCA:IHE)

수요일, 5월 01, 2024

뉴스

파트너 / 기고자

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