US equity and bond markets are rallying in post-Memorial Day trading. Gold and silver are mixed, while oil prices are waffling between gains and declines. The US dollar is flat.
Markets have been taking tentative steps toward pricing in peace in the Middle East, with oil prices falling, stocks rising, and interest rates easing globally in the last couple of trading days. That’s happening even as the US reportedly attacked two Iranian minelaying boats, which prompted Iran to fire on US airplanes – and the US to respond by targeting Iranian missile launchers. Don’t get too excited though. Even after its recent pullback, the United States Oil Fund LP (USO) is still up 103.8% year-to-date.
USO, LLY, RACE (YTD % Change)
Data by YCharts
Flush with funds from sales of its highly successful weight loss products, Eli Lilly & Co. (LLY) is going shopping. The pharmaceutical giant is buying three vaccine makers called Curevo, LimmaTech Biologics, and Vaccine Co. for around $4 billion. They have vaccines in development to combat shingles, bacterial pathogens, and the Epstein-Barr virus. Lilly stock is roughly unchanged YTD, but up 154.6% in the past three years.
Finally, Ferrari NV (RACE) revealed its first fully electric vehicle yesterday. The “Luce” model sports a price tag of more than $640,000 and a non-traditional design from Jony Ive, the former chief designer at Apple Inc. (AAPL).
It churns out 1,050 horsepower and goes from 0-60 miles per hour in under 2.5 seconds. Still, some Ferrari traditionalists don’t appear happy with the styling – and it comes as other high-end automakers like Lamborghini have shelved EV plans due to lackluster demand. Ferrari stock is down 4.6% YTD.
