1. S&P 500 May Reach New Record High;
2. Occidental Closes $10.8 Billion Acquisition;
3. Weight Rebound After Eli Lilly Drug Discontinued;
4. Bitcoin Drops 7.5%;
5. Cigna Drops Humana Acquisition Plan;
6. Nvidia Emerges as Top AI Investor;
7. Macy’s Receives $8.5 Billion Buyout Offer.
1. S&P 500 May Reach New Record High
Bloomberg’s latest Markets Live Pulse survey shows that among 518 respondents, expectations are for the S&P 500 Index to rise to 4,808 next year—above the all-time high of 4,787 set in January 2022. Meanwhile, the 10-year Treasury yield is expected to fall from its 2023 peak of 5% to 3.8%.
Over two-thirds of respondents believe the U.S. can avoid a hard economic landing and expect the Federal Reserve to start cutting rates by July.
Top strategists at Deutsche Bank and RBC Capital Markets also predict the S&P 500 will break new highs next year.
John Stoltzfus, Chief Strategist at Oppenheimer Asset Management—who accurately predicted this year’s rally—even believes the S&P could exceed 5,200.
33% of pessimistic respondents believe consumer spending will continue to slow and drag the market down.
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2. Occidental Closes $10.8 Billion Acquisition
Occidental Petroleum Corp. announced today that it will acquire shale driller CrownRock for $10.8 billion in cash and stock. The deal is expected to close in Q1 2024, pending regulatory approval.
With Bank of America’s help, Occidental secured a $10 billion bridge loan, which will later be replaced by longer-term loans and bonds.
CrownRock is the third-largest privately owned oil producer in the Permian Basin, and its operations complement Occidental’s other acquisitions in the region.
Occidental’s largest shareholder, Berkshire Hathaway, did not participate in the deal.
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3. Weight Rebound After Eli Lilly Drug Discontinued
New research has found that patients who stopped taking Eli Lilly’s weight-loss drug Zepbound regained half of the weight they had lost—but still remained significantly lighter than before starting treatment.
According to a study published in the Journal of the American Medical Association (JAMA), patients lost an average of 20.9% of their weight after 8 months of Zepbound. A year after stopping the drug, they remained 9.9% lighter than their starting weight. Patients who took the drug continuously for 88 weeks lost an average of 25.3%.
Obesity expert Dr. Louis Aronne of Weill Cornell Medicine said the results exceeded his expectations, though the data confirm that continued use yields better outcomes.
For patients who took the drug for 88 weeks, weight loss plateaued around week 64.
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4. Bitcoin Drops 7.5%
Bitcoin saw an intraday plunge of up to 7.5% today—its largest single-day drop since August 18—as many profit-taking investors chose to cash out.
Analysts said the dip was not caused by any fundamental weakness but rather position adjustments and profit realization.
Data showed that on December 11, $405 million worth of long crypto positions were liquidated—the highest since mid-September.
The Federal Reserve’s two-day policy meeting begins Tuesday, and the outcome may influence broader asset market moves.
Bitcoin has surged over 150% year-to-date, making this a timely moment for some to lock in gains.
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5. Cigna Drops Humana Acquisition Plan
Sources revealed that U.S. health insurer Cigna has decided to abandon its acquisition of Humana, which would have been the largest deal of the year.
The companies reportedly disagreed on financial terms and were concerned about regulatory hurdles and Cigna’s falling share price.
On Sunday, Cigna announced that it would increase its stock buyback program by $10 billion after scrapping the deal.
CEO David Cordani said the company would use capital cautiously and only merge with firms that bring clear synergies. He added that Cigna’s current valuation made this an opportune time for buybacks.
A Jefferies survey found that 70% of healthcare firms expect M&A activity to pick up next year.
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6. Nvidia Emerges as Top AI Investor
Nvidia, the world’s most valuable semiconductor company, announced that it has invested in more than 20 AI firms—some involving billions of dollars.
According to Dealroom, which tracks VC investments, Nvidia took part in 35 funding rounds in 2023—six times more than last year—outpacing top Silicon Valley VCs like Sequoia Capital and Andreessen Horowitz.
Nvidia’s head of venture investing, Mohamed Siddeek, said the main criteria for investing is that target firms must use Nvidia’s technology, creating mutual benefit.
The company has invested in Inflection AI and Cohere, two of ChatGPT’s biggest rivals.
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7. Macy’s Receives $8.5 Billion Buyout Offer
Sources say Arkhouse Management and Brigade Capital Management have submitted a $21-per-share buyout offer for department store chain Macy’s.
The prospective buyers reportedly aim to sell off some of Macy’s real estate holdings, as well as its upscale Bloomingdale’s brand and beauty chain Bluemercury.
Joel Bines, former global retail lead at Alix Partners, said it’s Macy’s property portfolio that is drawing buyer interest—operating a department store chain is increasingly challenging in today’s economy.
Bloomberg estimates that Macy’s real estate is worth $8 billion. With a total offer of $8.5 billion, the buyers could effectively acquire the entire company for just $500 million above the value of its property assets.
Macy’s flagship store at Herald Square alone is valued at $2 billion—possibly more.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.