Biotech Investors Brace for Shutdown Blues

We're also helping you get ready for a busy week of earnings reports. ------------------------------------------------------------------------------------------------------------------------------------------------------ [View this email in your browser]( As the government shutdown continues, more companies find themselves in limbo. We're also helping you get ready for a busy week of earnings reports, sharing some tax tips, and more. – Katie Carrera, Stock Up Editor Government Shutdown Could Leave Biotech Companies in a Lurch --------------------------------------------------------------- The longer the U.S. government shutdown drags on, the wider its impact spreads. With the Food and Drug Administration (FDA) running out of funding, that could spell trouble for biotech and pharmaceutical companies seeking approvals for various treatments. Here are three companies facing major obstacles for important projects. - Aimmune Therapeutics ([NASDAQ:AIMT]( is stuck waiting for the FDA to review its application for a peanut allergy immunotherapy, which the agency announced won't happen until the shutdown ends. If approved, it would be the first therapy of its kind. - Amarin ([NASDAQ:AMRN]( A recent study showed that Vascepa, an existing treatment for lowering triglyceride levels, could reduce the risk of major cardiovascular events such as heart attack and stroke. The company plans to apply for a label that includes those benefits in the first quarter of 2019, but there's no telling how long approval could take. - Celgene ([NASDAQ:CELG]( has two drugs potentially in limbo due to the shutdown. The biggest headache would be additional slowdowns for Ozanimod, a treatment for multiple sclerosis that was previously stalled by a filing mistake. It was expected to be one of the biggest new drugs to hit the market. [Read the rest]( for more the significance of these drugs to each of their companies' respective businesses. --------------------------------------------------------------- Already subscribed to a premium service? [Click here]( to view your subscriptions. Not a member yet? [Click here]( to sign up! --------------------------------------------------------------- Watch: Why Do Companies Pay Dividends? --------------------------------------------------------------- [FAQ Fools Answer Questions: Why Do Companies Pay Dividends?]( The word "dividend" gets thrown around a lot, so we're breaking down why companies pay them and how dividend reinvestment plans work. We'll also dig into some of the core metrics investors need to know to evaluate dividend stocks. --------------------------------------------------------------- Earnings Season: What to Watch Next Week The upcoming week will be a particularly busy one for earnings reports. Here's some of what we'll be watching as some major companies report their fourth-quarter and full-year 2018 results. January 29 - Apple ([NASDAQ:AAPL]( rocked investors and the market earlier this month when it said revenue for the holiday quarter would come in about $5 billion less than expected. That puts extra pressure on the details of what could be the tech company's first quarter showing a year-over-year decline since late 2016. What to watch: Whether other product segments can help make up for lower iPhone sales, specifically services (the App Store, iCloud, etc.) and other products (Apple TV, Apple Watch, AirPods, etc.). January 30 - Facebook ([NASDAQ:FB]( will report its fourth-quarter and full-year financial results after market close. Decelerating growth, high-profile privacy issues, and the stock market's decline in late 2018 are among the factors weighing on shares of the social network. What to watch: Year-over-year revenue growth rates have dropped off substantially in recent quarters, and it's likely the trend will continue. Meanwhile, Facebook's new user metric (which includes anyone who uses at least one of the company's apps each month) has been growing and it will be interesting to see if the company is sustaining that momentum. - Tesla ([NASDAQ:TSLA]( The electric car maker proved it could increase its production volume (it previously released record vehicle numbers for 2018), so the focus this week will be on financials. What to watch: When Tesla recently announced plans to [lay off 7% of its full time workforce]( the company also said it expects a lower profit in the fourth quarter. Investors should also check on Tesla's cash flow in this report, and pay close attention to any future guidance from management especially when it comes to expectations for Model 3 sales and deliveries, or whether the company will launch a cheaper version. January 31 - Amazon.com ([NASDAQ:AMZN]( hasn't been immune to larger market volatility, but the e-commerce giant has still far outpaced the S&P 500 over the past year. What to watch: Revenue growth has been Amazon's calling card, and although it slowed in recent quarters management still expects 10% to 20% year-over-year growth for the fourth quarter. Other areas to scrutinize include whether the rapidly growing cloud computing business, Amazon Web Service, can keep up its pace and if the company can continue to expand its operating income. --------------------------------------------------------------- [Smart Speaker] Looking for new things to ask your smart speaker? Keep up with what's happening in the market by adding our daily flash briefing to your home assistant. Just look for The Motley Fool on your Amazon Alexa or Google Home app, click subscribe, and then you're good to go. --------------------------------------------------------------- Tax Tips for 2019 and Beyond Dozens of new rules took effect last year that dramatically changed the way people are taxed on their income. So, as you prepare to file your 2018 taxes, and see, maybe for the first time, the impact of tax reform on your finances keep these things in mind. - Take a fresh look at your tax situation. Throw out any preconceptions — the rules changed on enough key provisions that you should look out for new opportunities to save. One key example is the new rules for the child tax credit. - Watch your withholding. If you get a big refund when you file your 2018 return, you could have gotten more of that money over the course of the year by adjusting your withholding. - Check your deductions. The near-doubling of the standard deduction combined with limitations on some itemized deductions might mean you won't want to itemize even if you did so previously. - Examine your state income tax. State taxes don't always mirror what's happening at the federal level and many have completely independent systems. Pay close attention to find any new differences. - Save a little more — in a tax-savvy way. Most tax-advantaged retirement accounts have higher maximum contributions for 2019. If you can afford it, take the opportunity to add more to your savings. [Read the rest.]( This is for educational use only and should not be considered tax advice. For individualized tax advice and planning, please consult your personal accountant. --------------------------------------------------------------- FEATURED PODCAST --------------------------------------------------------------- [Motley Fool Answers]( A Tribute to Jack Bogle and Emergency Funds Hosts Robert Brokamp and Alison Southwick cover everything you need to know about emergency funds: how to build one, where to keep it, and what to do if you don't have one when an emergency happens. All that and a celebration of the life of Vanguard founder, Jack Bogle. 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