Stocks Reach New Heights as Market Continues to Recover

Strategic Insights -

Technology and pharmaceutical companies led the charge Friday, with several prominent names hitting 52-week highs. Merck, which has been working on a new generation of arthritis drugs, was a standout performer, trading as high as $145.50 before closing at $144.93 3/4. The company is expected to release data on the drugs next week at a meeting of arthritis specialists, which could potentially change the way doctors treat the condition that affects 40 million Americans.

The rise of these companies is largely due to the aging baby boomer population, which could lead to a 50-60% increase in arthritis sufferers to 60 million by 2020. Meanwhile, sales of the new drugs could top $5 billion annually. Microsoft and Intel also made significant gains, with Microsoft climbing $2.93 3/4 to $109.31 1/4 and Intel trading at its first 52-week high since February 24.

Key Takeaways:

  • Merck's new generation of arthritis drugs has the potential to significantly impact the treatment of the condition, affecting 40 million Americans.
  • The aging baby boomer population is expected to drive a 50-60% increase in arthritis sufferers to 60 million by 2020.
  • Sales of the new Merck drugs could top $5 billion annually.
  • Microsoft and Intel made significant gains, with Microsoft climbing $2.93 3/4 to $109.31 1/4 and Intel trading at its first 52-week high since February 24.
  • Guidant received FDA approval to market new ACS coronary catheter and stent products, driving its stock up $3.68 3/4 to $82.18 3/4.
  • Safeway gained $2.81 1/4 to $50 on news that it will be added to the Standard & Poor's 500-stock index.
  • CBS rose $1 to $29.87 1/2 on news that it will replace Chrysler in the S&P 100 Index.

Statistics:

  • Merck's stock traded as high as $145.50, a 52-week high.
  • Intel's stock trading at its first 52-week high since February 24 reached $95.87 1/2.
  • Microsoft's stock climbed $2.93 3/4 to $109.31 1/4.
  • Guidant's stock added $3.68 3/4 to $82.18 3/4 after receiving FDA approval for new products.
  • Safeway's stock gained $2.81 1/4 to $50.
  • CBS's stock rose $1 to $29.87 1/2.

Sources:

  • "Stocks Reach New Heights as Market Continues to Recover." [No publication date mentioned].