Live Markets: Healthcare to swim along as AI rally broadens

Exscientia

17/05/2024 18:18

* 
      Main U.S. indexes mixed, little changed
    

        * 
      Energy leads S&P 500 sector gainers; Tech weakest group
    

        * 
      Dollar ~flat; crude up; gold up >1%; bitcoin up >2%
    

        * 
      U.S. 10-Year Treasury yield rises to ~4.42%
    

  
Welcome to the home for real-time coverage of markets brought to
you by Reuters reporters. You can share your thoughts with us at

    
        HEALTHCARE TO SWIM ALONG AS AI RALLY BROADENS
  
    Defensive-minded investors who are looking to potentially
rev up their portfolios might be in luck as artificial
Intelligence (AI), the buzz-word that sent stocks across the
globe soaring since 2023, makes further headway into the
healthcare sector.
    After reviewing medical journals and over 500 corporate
presentations Morgan Stanley believes AI and machine-learning
(ML) integration in biopharma could boost discovery and make
clinical development of drugs more efficient. 
    Firms that are exploring various approaches include
Recursion  RXRX.O , Schrodinger  SDGR.O , Exscientia  EXAI.O 
and Google DeepMind.
    Earlier in the week, Recursion announced the completion of
Nvidia-powered  NVDA.O  supercomputer BioHive-2, which the
biotech firm says is the largest supercomputer in the industry. 
    Late last week, Cathie Wood-led ARK Invest also lapped up
shares in Recursion following better-than-expected first quarter
results, as per LSEG data.
    In terms of forward price-to-earnings valuation, Recursion,
Schrodinger and Exscientia are trading near to their respective
industry medians or at a discount, according to LSEG data.
    Another subsector that can benefit is medical technology,
where companies manufacture AI and ML integrated devices that
help detect the early onset cancer and major lung diseases,
while firms exploring the prospects of AI-enabled robotic
surgery are also expected to benefit. 
    Businesses that are exploring the broadening use of AI in
med-tech include iRhythm  IRTC.O  that makes heart monitors,
hearing aid manufacturer Demant  DEMANT.CO  and GE HealthCare
 GEHC.O  that is involved in the making of imaging devices.
    Morgan Stanley also adds that firms in the line of
healthcare services such as front line care, diagnostics,
telepharamacy operations and health-insurance can help narrow
costs and boost profitability on utilizing AI to help automate
workflows.
    As the first-quarter earnings season teeters to a close,
healthcare firms that are part of the benchmark S&P 500  .SPX 
outperformed the broader market, and the integration of
artificial intelligence and machine learning in the sector could
further propel profitability.
    
    (Johann M Cherian)
     ***** 
 
 
    FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
    
    INDIVIDUAL INVESTOR SENTIMENT FREEZES - AAII - CLICK HERE
    
    EUROPEAN BANKS ARE 'SO BACK' SAYS GOLDMAN SACHS - CLICK HERE
    
    ECONOMIC OUTLOOK SINKS TO COVID LOWS/WALL ST SITS AT RECORD
HIGHS - CONFERENCE BOARD - CLICK HERE
    
    U.S. STOCKS FLAT EARLY FRIDAY, BUT POINT UP FOR THE WEEK -
CLICK HERE
    
    NYSE BREADTH BREATHES EASY, NASDAQ NOT SO MUCH - CLICK HERE
    
    ROTATION FROM SERVICES BACK TO GOODS - CITI - CLICK HERE
    
    CLEAN POSITIONING POINTS TO FURTHER RECORD HIGHS FOR
EQUITIES - JEFFERIES - CLICK HERE
    
    CLIENTS IN TWO CAMPS ON EURO AREA RECOVERY - BOFA - CLICK
HERE
    
    MARKET PRESSES PAUSE ON STOXX RALLY - CLICK HERE
    
    FUTURES SIGNAL DROPS AS TRADERS AWAIT EURO INFLATION - CLICK
HERE
    
    MARKETS PONDERS RATES PATH, SHARES LISTLESS - CLICK HERE