The wait is over for the results of the December 2023 FOMC Meeting and Fed press conference. If you had a Dovish Fed on your bingo card for this week, you might be ready to claim your prize. At the December Fed meeting, the central bank has caused a significant about-face in the outlook on rates for 2024.
December Fed Meeting Recap
The Fed finally tapped the brakes on interest rates today. After aggressively hiking rates most of last year as inflation soared, they’ve now held steady at the last few meetings. Today we got a clearer picture of what’s next. The Fed basically conceded they’ve done enough to fight inflation. Most officials now think rates can start coming back down in 2024 to boost growth.
It’s a major shift in tone. For over a year, all we heard was tough talk about crushing inflation at all costs. Now, suddenly, they’re seeing signs inflation is cooling, and the economy can handle slightly lower rates again soon. The new forecasts show rates dropping about 0.75% through 2024. And inflation falling to 2.4% by then – not far above their 2% goal.
Meanwhile unemployment only ticks up to 4.1%, so no major pain on Main Street. And we still see decent growth, around 1.5% a year. That’s the elusive “soft landing” the Fed has hoped for.
Taming inflation without triggering a nasty recession or, possibly worse, a period of stagflation. Wall Street seems to buy it, too – investors have predicted rates would fall starting next year.
But as is always the case, the Fed left the door open to hiking more if inflation rebounds. But that seems doubtful, given the steady progress lately. So does this mean it’s time to open the floodgates and buy stocks hand over fist? You can be the judge of that. For now, we’re sticking with the list of penny stocks to watch and 3 gaining momentum in the stock market today.
Penny Stocks To Watch
- ReShape Lifesciences (NASDAQ: RSLS)
- Agenus Inc. (NASDAQ: AGEN)
- Terran Orbital Corp. (NYSE: LLAP)
ReShape Lifesciences (RSLS)
ReShape Lifesciences is a healthcare company focusing on weight loss and metabolic health solutions. They are known for developing minimally invasive medical devices for obesity treatment. The FDA-approved Lap-Band System is one of the prominent products that it is known for. Something helping to drive momentum in RSLS stock is another FDA-related update.
ReShape Lifesciences announced FDA approval of a supplement for the next-generation Lap-Band 2.0 FLEX. This new Lap-Band version features FLEX Technology for improved patient experience. The technology allows food to pass more easily, reducing discomfort.
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The company is preparing for the U.S. launch of this product. However, the ultimate success of the Lap-Band 2.0 FLEX will rely on effective marketing, market acceptance, and the demonstration of long-term benefits to patients.
On the back of this news, RSLS stock has continued surging higher. In the stock market today, shares rose as high as $0.59.
Agenus Inc. (AGEN)
Agenus Inc. is an immuno-oncology company focused on developing therapies to treat cancer and other diseases. Their work includes developing novel immuno-oncology agents. A key area of their research is in TIGIT-CD96 bispecific antibodies.
Earlier this week, the company announced that it received a $25 million milestone payment from Bristol Myers Squibb. This payment is linked to their bispecific TIGIT antibody program, particularly BMS-986442. The milestone was triggered by the first patient dosing in a phase 2 trial of BMS-986442. This program is part of a larger collaboration between Agenus and Bristol Myers Squibb, initiated in 2021.
Chief Executive Officer, Garo Armen, Ph.D. explained, “The start of the phase 2 portion of the dose expansion study marks an exciting milestone for this differentiated anti-TIGIT program and an important step in potentially delivering a meaningful new option for cancer patients…Similar to our lead program botensilimab, we engineered this bispecific TIGIT antibody with an Fc-enhanced design, which we believe to be a pivotal feature for boosting clinical activity. We look forward to the future development of this program together with our partner Bristol Myers Squibb, as we remain committed to delivering innovation in cancer research.”
While this milestone is promising, investors should weigh the potential benefits against the risks and uncertainties inherent in clinical development.
Terran Orbital Corp. (LLAP)
Terran Orbital specializes in nano-satellite systems. The company is a significant player in aerospace and defense technology. The company has been in the spotlight recently, thanks to a potential sale.
A group of investors in Terran Orbital Corp., including Sophis Investments LLC and co-founders of Tyvak Nano-Satellite Systems, has called for immediate leadership changes. They urge the separation of Chairman and CEO roles and the appointment of a new CEO. This follows recent statements by the current CEO, which they believe have negatively impacted the company’s stock value and credibility.
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The call for leadership changes could have varying impacts on sentiment. While it might bring instability in the short term, long-term traders might see it as a positive move towards better governance. However, against this backdrop, LLAP stock has traded higher in the stock market today.
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