Sector Update: Health Care Stocks Retreat Late Afternoon

Health care stocks fell Friday afternoon with the NYSE Health Care Index down 0.4% and the Health Care Select Sector SPDR Fund (XLV) shedding 0.2%.

The iShares Biotechnology ETF (IBB) rose 0.6%.

In corporate news, AstraZeneca will invest $2.5 billion in a new research facility in Beijing just months after the company's top executive for China was detained by the country's authorities, Bloomberg reported. AstraZeneca shares dropped 1.8%.

Johnson & Johnson plans to increase US investments to more than $55 billion over the next four years to boost its manufacturing and research capabilities. The shares rose 0.3%.

TC BioPharm shares fell 62% after the Nasdaq Hearings Panel decided to delist the stock from the exchange for failing to comply with the minimum bid price requirement.

he FTSE 100 index ended Friday trading 0.53% in the red, tracking a Europe-wide retreat, as consumer confidence in the UK remains subdued in March.

GfK's consumer confidence index grew by a point to -19 in March, exceeding the consensus estimate of -21 but remaining in the negative territory.

"Since September last year, the headline has been in a range of -17 to -22," according to Neil Bellamy, consumer insights director at NIQ GfK. "This is more positive than mid-2022 into early 2023 at the height of the cost-of-living crisis, which delivered the worst headline scores ever including nine months at -40 or worse. But we are still below the long-term average of -10."

Meanwhile, data from the Office for National Statistics showed that public sector net borrowing increased by 100 million pounds sterling year over year to 10.7 billion pounds in February.

Also in investors' minds is the fire at National Grid's (NG.L) North Hyde substation, which impacted flight operations at Heathrow. The airport expected to be closed the whole day but now said that some flights will restart shortly. The stock lost 1.21%.

In corporate news, AstraZeneca plans to set up a new global strategic research and development center in Beijing, China, with an investment of $2.5 billion over the next five years. The British drugmaker declined 1.69%.

Apollo-managed funds agreed to buy a 25% stake in BP Pipelines (Tanap), a subsidiary of bp (BP.L) that holds its 12% interest in the Trans-Anatolian natural gas pipeline, for $1 billion. The deal is expected to close in the second quarter. The British oil giant was up 0.33%.

BT Group (BT-A.L), ITV , IMG and BBC agreed to pay fines worth 4.2 million pounds after the UK Competition and Markets Authority found that the sports broadcast and production companies shared sensitive information about fees for freelance workers, including camera operators and sound technicians. BT and ITV gained 0.70% and 0.94%, respectively.

All three major US stock indexes were down in midday trading as markets appear as though they will end the week on a gloomy note.

In company news, Boeing has won a multibillion-dollar contract to design and build a fighter jet for the US Air Force, beating Lockheed Martin , according to media reports Friday. Boeing shares were up 5.3% at noon. Lockheed shares were down roughly 6%.

FedEx reported fiscal Q3 adjusted earnings late Thursday of $4.51 per diluted share, up from $3.86 a year earlier but below the consensus estimate of analysts polled by FactSet calling for $4.56. Fiscal Q3 revenue was $22.2 billion, up from $21.7 billion in the year-ago period and above the FactSet consensus of $21.87 billion. The company said it now expects fiscal 2025 adjusted EPS of between $18 and $18.60, down from the previous guidance of $19 to $20. Analysts expect $18.93. FedEx also expects flat to slightly lower revenue for the fiscal year compared to previous guidance of about flat revenue. FedEx shares were down 8.8%.

AstraZeneca will invest $2.5 billion in a new research facility in Beijing just months after the company's top executive there was detained by Chinese authorities, Bloomberg reported Friday. AstraZeneca shares were down 1.6%.

Nike reported fiscal Q3 earnings late Thursday of $0.54 per diluted share, down from $0.77 in the year-ago period but above the FactSet consensus of $0.28. Fiscal Q3 revenue was $11.27 billion, down from $12.43 billion a year earlier but above the FactSet consensus of $11.02 billion. The company expects revenue to be down at the low end of a mid-teens range in the ongoing quarter, reflecting unfavorable shipment timing in North America and foreign exchange headwinds, Chief Financial Officer Matthew Friend said on a call with analysts. Nike shares were down 5.6%.

Elliott Management, which holds nearly a 5% stake in BP , has urged the energy company to make more aggressive changes, including cost-cutting measures and a possible reshuffling of its leadership, Reuters reported Friday, citing two major shareholders. Elliott is pushing for a reduction in BP's annual spending to below $13 billion and urging for a sale of a significant portion of the company's petrol station network, Reuters reported, citing a source familiar with the matter. Separately, BP and Apollo Global Management said Friday they reached an agreement for Apollo-managed funds to buy a 25% non-controlling stake in BP's 12% interest in the pipeline carrying natural gas from Azerbaijan through Turkey. Apollo will pay about $1 billion for a stake in BP TANAP, the subsidiary that holds BP's interest in the 1,800-kilometer pipeline, the companies said. BP shares were down 0.7%, while those of Apollo were down 1.1%.

Johnson & Johnson said Friday it plans to increase its US investment to more than $55 billion over the next four years to boost its manufacturing and research capabilities. The investment represents a 25% increase to the previous four years, Johnson & Johnson said. Shares of the company were up 0.3%.

By Helena Smolak

AstraZeneca plans to invest $2.5 billion in China over five years to build a research-and-development center and strike deals with local biotechnology companies, at a time Chinese authorities are probing the U.K. drugmaker.

The U.K. pharmaceutical giant said Friday that it will build a new research center in Beijing, its sixth globally, that will focus on early-stage research and clinical development and include an artificial intelligence and data science laboratory.

AstraZeneca relies more on China than most of its peers. The company generated nearly 12% of its revenue last year in the country, an exposure that came under investors' scrutiny after Chinese authorities probed allegations of medical-insurance fraud and illegal drug imports by some current and former employees.

The company said alongside its full-year results last month that it could face a fine of up to $4.5 million if found liable. The probes weighed on AstraZeneca's stock initially, but shares have since rebounded as analysts expect the investigations to have a minimal impact on the company's result.

The $2.5 billion investment reflects AstraZeneca's continued commitment to China, Chief Executive Pascal Soriot said. The R&D facility will be the company's second in China, coming after its research center in Shanghai, and add to two more in Europe and two in the U.S.

AstraZeneca anticipates its Beijing workforce to grow to 1,700 employees, up from 1,100 currently.

The investment includes research agreements with Chinese biotech companies Harbour BioMed to identify multi-specific antibodies and Syneron Bio to develop macro-cyclic peptides. AstraZeneca said it entered into a joint venture with BioKangtai to develop, manufacture and commercialize respiratory and infectious diseases vaccines.

AstraZeneca said it reached 12 licensing agreements valued at more than $9.7 billion in total in China in recent years.

Write to Helena Smolak at helena.smolak@wsj.com

(Update with AstraZeneca's response to a request for comment.)

AstraZeneca will invest $2.5 billion in a new research center in Beijing just months after the company's top executive there was detained by Chinese authorities, Bloomberg reported Friday.

"This $2.5 billion investment reflects our belief in the world-class life sciences ecosystem in Beijing, the extensive opportunities that exist for collaboration and access to talent, and our continued commitment to China," Chief Executive Pascal Soriot said in a statement shared with MT Newswires. "Our sixth strategic R&D centre will partner with the cutting-edge biology and AI science in Beijing and be a critical part of our global efforts to bring innovative medicines to patients worldwide."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)