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Biotechnology stocks offer an under-the-radar and unappreciated way to profit from the central bank's looming campaign to start cutting the cost of borrowing, according to Goldman Sachs. Investors may have already begun to anticipate the effect of lower rates on some biotech companies. IBB .SPX mountain 2024-06-30 The iShares Biotechnology ETF has risen more than twice as much as the S & P 500 this quarter. The iShares Biotech ETF is up 7.7% this quarter while the Nasdaq Biotech Index has advanced 7.4%, more than double the 3.2% gain in the S & P 500 since June 30. Year-to-date, Regeneron is up 30.6% and Vertex by 18.3%, both outperforming the 18.1% rise in the S & P 500.
Persons: Goldman Sachs, John Flood, Goldman, Flood, Regeneron Organizations: Biotechnology, Federal Reserve, Gilead Sciences, Nasdaq Biotechnology, IQVIA Holdings, Regeneron Pharmaceuticals, Amgen, Vertex Pharmaceuticals, iShares Biotech, Nasdaq Biotech Locations: Gilead
David Solomon had been shrinking the size of Goldman's partner ranks to make it more exclusive. On Wednesday, the firm named 80 new partners, its largest class since Solomon became CEO in 2018. Goldman Sachs promoted 80 people to partner status on Wednesday, marking the largest class since David Solomon took over as CEO in 2018. Goldman's partner class has been steadily shrinking since David Solomon took over as CEO in 2018. Last year, Goldman gave its roughly 400 partners special one-time payments that added millions of dollars to their already generous year-end bonuses.
Buybacks are expected to come in full force in the fourth quarter, poised to give the volatile stock market a big boost. Publicly traded companies have a policy that restricts trading in their own shares beginning two weeks prior to the quarter end, through 48 hours after earnings are publicly released. Most of the current buybacks are executed through Rule 10b5-1, which allows companies to set up a predetermined plan to buy back stock. Buybacks have been a popular way for companies to return cash to shareholders, competing with dividends. Corporate America also uses share repurchases to improve earnings per share, since buybacks reduce the share count.
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