Intel, Intuitive Surgical, P&G and more set to report earnings Thursday

Investing.com -- The biotech sector is experiencing a significant resurgence after five years of underperformance compared to broader market indices. Following a sustained rally that began in the second half of 2025, the sector has returned to highs not seen since 2021, with certain stocks positioned to capitalize on this renewed momentum.

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Deutsche Bank has identified key players in the SMID-cap biotech space expected to outperform in 2026, driven by several favorable market conditions.

These include returning generalist investors with increased risk appetite, healthy M&A activity from large pharmaceutical companies addressing patent cliffs, improved capital market access, revaluation of clinical and commercial-stage companies, and a healthier ecosystem following the elimination of underperforming companies from the previous bull cycle.

Among the standout performers in Deutsche Bank’s analysis:

1. Axsome Therapeutics (NASDAQ:AXSM) tops the list as the premier US biopharma stock to watch. The company has demonstrated strong commercial execution and successful study readouts that have contributed to its improved valuation. As the biotech sector continues its upward trajectory, Axsome is well-positioned to benefit from the increased investor interest and capital flowing into the space.

In a recent update, Axsome Therapeutics reported preliminary fourth-quarter 2025 product revenue of approximately $196 million, a 65% increase from the prior year. The strong sales figures prompted price target increases from several analyst firms, including H.C. Wainwright and Baird.

2. Apogee Therapeutics (NASDAQ:APGE) secures the second position in Deutsche Bank’s rankings. The company exemplifies the sector’s renewed focus on rewarding clinical success and commercial potential. As generalist investors return to biotech with greater risk tolerance, Apogee stands to benefit from the improved market sentiment and funding environment.

Apogee Therapeutics released encouraging Phase 1b data for its asthma treatment, zumilokibart, which was viewed as a validation of the treatment’s potential. Following the results, firms such as BTIG and Craig-Hallum raised their price targets, while UBS initiated coverage with a Buy rating.

The broader positive outlook for biotech in 2026 is supported by multiple factors, including the anticipated emergence of a healthier IPO market expected to materialize after the J.P. Morgan Healthcare Conference in the first quarter of 2026. This development would complete the sector’s recovery cycle by providing an exit pathway for private companies looking to test public markets.

The resurgence in biotech valuations reflects a market that has become more discerning, rewarding companies with solid data and commercial execution while eliminating underperformers. This reset creates a more sustainable investment landscape for companies like Axsome and Apogee to thrive.

As large pharmaceutical companies continue seeking innovation through acquisitions to address upcoming patent expirations, well-positioned SMID-cap biotech firms with promising pipelines or commercial products remain attractive targets, potentially driving further valuation growth in the sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Lucid Group (NASDAQ:LCID) stock surged 15% Wednesday after the luxury electric vehicle maker announced a partnership with Rockwell Automation (NYSE:ROK) to power its manufacturing facility in Saudi Arabia.

The collaboration will see Lucid deploy Rockwell’s enterprise software solutions, including FactoryTalk manufacturing execution system (MES) software, across all major production areas at its King Abdullah Economic City plant. This facility represents Saudi Arabia’s first vehicle manufacturing site and will focus on producing Lucid’s future midsize vehicles.

Rockwell’s software will provide Lucid with real-time visibility, traceability, and control across operations, potentially enhancing production efficiency. The automation company will also deliver training programs to develop local Saudi talent, aligning with Saudi Arabia’s Vision 2030 economic diversification goals.

"Rockwell Automation has been a trusted partner throughout our journey, from our Arizona factory to our expansion in Saudi Arabia," said Faisal Sultan, president of Middle East at Lucid. "Their software solutions and local expertise will help us scale production while maintaining the highest standards of quality and innovation our customers have come to expect."

The announcement comes as Lucid works to expand its manufacturing footprint beyond its Arizona facility. The Saudi Arabian plant represents a significant step in the company’s international growth strategy and its efforts to establish a presence in the Middle East automotive market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com - Canada’s main stock index was little changed on Wednesday, after the average sank to its worst day in two months in the prior session.

The S&P/TSX 60 index standard futures contract was hovering just above the flatline.

The S&P/TSX composite index was hovering around flat line at 32,738.43.

On Tuesday index fell by 1% to 32,750.28, retreating from a recently-logged all-time peak.

Along with renewed geopolitical and trade tensions between the U.S. and Europe, investors were also digesting a spike in Japanese government bond yields ahead of a snap election in the country next month.

Yet losses were mitigated by the materials sector, which includes metal mining stocks. The segment has been bolstered by a surge in gold prices, reflecting a flight by many traders to the perceived safety of bullion.

U.S. stocks gain

U.S. stock index rose after Trump said he won’t use force in Greenland issue in World Economic Forum in Switzerland, giving some calm to investors. The previous session saw bruising losses.

The Dow Jones Industrial Average rose 195 points, or 0.4%, the S&P 500 index gained 20 points, or 0.3%, and the NASDAQ Composite climbed 25 points, or 0.1%.

The main averages on Wall Street fell sharply Tuesday, weighed by a resurgence in both geopolitical and trade tensions following President Trump’s threat to slap additional tariffs on several European countries unless his demands for U.S. ownership of Greenland were met.

The blue chip Dow Jones Industrial Average slipped more than 870 points, or about 1.8%, the S&P 500 lost 2.1% and the NASDAQ Composite slumped 2.4%, with all three benchmark indices logged their worst daily performances since Oct. 10. U.S. Treasury yields also surged, sending the benchmark 10-year note to its highest level since August.

Trump heads to Davos

The focus now turns to Trump’s scheduled speech at the World Economic Forum in Davos, Switzerland, later in the session, where he is expected to press his right to Greenland, a semi-autonomous Danish territory that the U.S. president has said the U.S. needs for national security reasons.

Trump appeared on Tuesday to strike a more conciliatory tone on the matter, saying he wanted to secure a deal that will make America’s NATO allies “very happy”, but he has remained insistent that Greenland needs to belong to America.

"Greenland will be the dominant theme today and there may be scope for de-escalation,” said analysts at ING, in a note.

“Trump is meeting EU leaders in Davos today, and if the past year has shown anything, it’s that face‑to‑face engagement tends to provide the best opportunity for tensions with the U.S. president to ease.”

Still, investors are jittery as Trump continues to warn that he could slap further 10% tariffs on eight European countries over Greenland — and raise them to 25% in June if he does not get his way.

Netflix slides on weak outlook

This is set to be a busy week for quarterly earnings, and Netflix reported its December quarter earnings after the market close Tuesday.

The streaming giant beat market expectations, but its first-quarter guidance came in short. The company flagged declining viewership of non-branded licensed titles, indicating that demand outside its premier in-house content was weakening. Its shares headed sharply lower premarket.

The numbers came shortly after California-based Netflix improved its $72 billion offer for Warner Bros Discovery’s studios and streaming division, in an attempt to bolster its stance in a bidding war with Paramount Skydance.

On the flip side, United Airlines stock rose strongly premarket after the carrier beat quarterly profit expectations and issued an upbeat outlook for the current quarter and the full year, buoyed by strong demand from higher‑income and corporate travelers.

There are more earnings set for release Wednesday, including from Johnson & Johnson, Halliburton and Travelers.

Procter & Gamble, GE Aerospace, Intel, Abbott Laboratories and Intuitive Surgical will report earnings on Thursday.

Gold climbs to new high

Gold prices soared to fresh record highs on Wednesday, surpassing $4,800 an ounce, as escalating tensions linked to Greenland and renewed trade frictions rattled global markets and drove investors toward safe-haven assets.

Spot gold recorded a new all-time high of $4,888.13/oz earlier in the day, while U.S. gold futures climbed 2.1% to historic highs of $4,866.10/oz.

Oil slips

Elsewhere, oil prices dropped sharply amid concerns for global growth from the U.S. tariff threats.

Both contracts closed nearly 1.5% higher on Tuesday after OPEC+ producer Kazakhstan halted output at two of its oilfields, potentially limiting global supply.

Beyond geopolitical tensions, a monthly report from the International Energy Agency is due later in the session, while eyes will also be on the latest reports of U.S. crude oil and gasoline stockpiles this week.