The S&P 500 fades despite tech rally — plus, the crosscurrents driving Lilly's volatile day

a day ago

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves : The S & P 500 turned negative Thursday afternoon after shares of major drugmakers came under pressure from President Donald Trump over prescription prices. Trump posted on social media letters that were sent to 17 pharmaceutical companies, including Club names Eli Lilly and Bristol Myers Squibb , asking them to cut U.S. drug prices. The letters mention the executive order the president signed in May that aims to reduce drug prices in the U.S. by comparing them to what's paid in other developed nations. This pricing push is separate from the sector-specific tariffs that Trump has threatened the pharmaceutical industry with. The stock market would look a lot worse if it weren't for the big post-earnings moves in Club names Meta Platforms , up 12%, and Microsoft , up 4%. Microsoft became the second stock to join the $4 trillion club, following fellow portfolio member Nvidia , which did so earlier this summer. But as of this writing, Microsoft was off its session highs and appeared unlikely to close above that market cap threshold. Tariff deadline : The S & P 500 had been rallying for much of the session but was losing steam even before the drug price news. Investors might be dealing with a little bit of a hangover from Wednesday when Federal Reserve Chairman Powell hesitated to pencil in an interest rate cut in September due to caution about whether tariffs will be inflationary. We will also watch out for more trade deals ahead of Friday's Trump administration-imposed "reciprocal" tariff deadline. Treasury Secretary Scott Bessent told CNBC on Thursday morning the U.S. has the "making of a deal" with China. In the afternoon, Trump froze Mexico's tariffs at 25% for 90 days as talks continued. The European Union made a trade deal with the U.S. on Sunday. Other countries reaching deals with Trump included Japan last Thursday and the United Kingdom back on May 8. Diabetes trial : In other Lilly news, the company announced the topline results of its highly anticipated SURPASS-CVOT Phase 3 trial on Thursday. This was a head-to-head trial comparing Mounjaro (tirzepatide) versus Trulicity (dulaglutide). Both drugs are in the GLP-1 class. The goal of the study was to prove that Mounjaro is an acceptable alternative in treating patients with Type 2 diabetes with cardiovascular risk. The results confirmed just that. While some of the more bullish investors were hoping for a more significant superiority, we still view the outcome as a positive step forward. It means Mounjaro's label will potentially expand to include cardiovascular risk reduction, an update that could drive broader insurance coverage. That said, this trial update is not the most important factor on our radar when it comes to Lilly. That event will be next week's earnings — and more specifically, what management says about sales expectations for Mounjaro and sister drug Zepbound in the second half of the year, especially in light of Novo Nordisk's surprise guidance cut earlier this week. While Novo's stumble makes it clear that Eli Lilly is gaining share in the lucrative GPL-1 market, we sold some shares on Tuesday to hedge against the possibility that GLP-1 market growth did not expand as fast as predicted, impacting the company's guidance. Shares of Lilly opened Thursday lower before mounting a comeback, only to rollover into the red after Trump went public with his drug price threats. As of 2:45 p.m. ET, shares of Lilly were down about 2%. At its highs of the day, the stock was up about 0.8%. Up next : Apple and Amazon report after Thursday's close. In addition to those two "Magnificent Seven" stocks, Reddit , Coinbase , Roku , Cloudflare ,and MicroStrategy report earnings. Before Friday's opening bell, we will get earnings from Club name Linde , Exxon Mobil , Chevron , Colgate-Palmolive , Regeneron and Dominion Energy . On the data side, the July nonfarm Payroll report will be out Friday morning. According to FactSet, the economy is expected to have added 115,000 jobs for the month. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Befesa S.A. (ETR:BFSA) Just Released Its Half-Year Earnings: Here's What Analysts Think

Yahoo

20 minutes ago

Yahoo

Befesa S.A. (ETR:BFSA) Just Released Its Half-Year Earnings: Here's What Analysts Think

Befesa S.A. (ETR:BFSA) came out with its half-yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in 2.8% below expectations, at €602m. Statutory earnings per share were relatively better off, with a per-share profit of €1.27 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. After the latest results, the ten analysts covering Befesa are now predicting revenues of €1.28b in 2025. If met, this would reflect a satisfactory 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 19% to €2.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.32b and earnings per share (EPS) of €2.05 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important. Check out our latest analysis for Befesa The consensus has made no major changes to the price target of €35.40, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Befesa analyst has a price target of €42.00 per share, while the most pessimistic values it at €28.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Befesa's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% annually. So it's pretty clear that, while Befesa's revenue growth is expected to slow, it's still expected to grow faster than the industry itself. The Bottom Line The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Befesa following these results. They also downgraded Befesa's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on Befesa. Long-term earnings power is much more important than next year's profits. We have forecasts for Befesa going out to 2027, and you can see them free on our platform here. And what about risks? Every company has them, and we've spotted 2 warning signs for Befesa you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Here's one of the best shares to consider buying as Trump's trade war escalates!

Yahoo

20 minutes ago

Yahoo

Here's one of the best shares to consider buying as Trump's trade war escalates!

Gold shares like Serabi Gold (LSE:SRB) have been among the most popular stocks to buy as President Trump's trade policy shakes market confidence. Bullion's all-time highs above $3,500 per ounce in April was struck against the backcloth of rising trade tensions. It's a trend I expect to continue. Uncertainty over US trade policy — and the impact of thumping tariffs on economic growth — are natural drivers of safe-haven assets. Gold's receiving extra support, too, from concerns that escalating tariffs will bolster inflation and reduce central banks' appetite to cut interest rates. Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession. Given this situation, Serabi's share price has rocketed 152% over the past year. It's also been propelled higher by the falling US dollar and rising geopolitical tensions. But the Brazilian miner still looks cheap, leading to speculation of further price gains. Its forward price-to-earnings (P/E) ratio is just 3.5 times for 2025. It drops to 3.3 times for next year. Going for gold (stocks) Buying gold shares exposes investors to the risks and unpredictability of the mining industry. This makes it a more dangerous option than buying physical metal, or a fund that simply tracks the gold price. Serabi, which operates in Brazil but reports in US dollars, is also vulnerable to currency volatility. However, this strategy also offers exceptional opportunities to create wealth when the yellow metal surges. Serabi's all-in sustaining costs (AISC) are $1,636 per ounce. If gold prices rise further from current levels of $3,300, every extra dollar will flow straight into the bottom line. This 'leverage effect' means the miner's profits can grow much faster than the bullion price itself (though they can also fall faster when gold drops). The leverage factor partly explains why Serabi's 152% share price gain since last August has outpaced the 36% rise in metal prices. However, it's not the only reason for the company's outperformance. Serabi has also: Reported its highest quarterly production for eight years Raised its mineral resource estimate Made good progress towards more than doubling annual output by 2028 The company's earnings are tipped to rise 87% year on year in 2025. A further 5% rise is tipped for next year. A cheap share I'm considering I hold an exchange-traded fund (the L&G Gold Mining ETF) in my portfolio to capitalise on the leverage effect as gold prices rise. And given its excellent value, I'm also considering buying Serabi shares when I next have cash spare to invest. As well as that having that low P/E ratio, the miner's price-to-earnings growth (PEG) ratio of below 0.1 underlines its cheapness in relation to predicted profits. This is well under the widely accepted value water mark of one. And things remain that way for 2026, with Serabi's PEG coming in at 0.6. While it's not without risk, I think Serabi Gold could be one of the best shares to consider buying in the current climate. The post Here's one of the best shares to consider buying as Trump's trade war escalates! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Legal & General Ucits ETF Plc - L&g Gold Mining Ucits ETF. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

OpenAI Raises $8.3 Billion at $300 Billion Valuation

Business Insider

32 minutes ago

Business Insider

OpenAI Raises $8.3 Billion at $300 Billion Valuation

Microsoft-backed (MSFT) AI firm OpenAI has raised $8.3 billion in fresh funding at a $300 billion valuation, according to The New York Times. Indeed, the raise is part of the company's bigger $40 billion fundraising goal for 2025 and came months earlier than expected. It is worth noting that OpenAI had already secured $2.5 billion in March and initially planned to add another $7.5 billion later this year, but accelerated its timeline as investor demand surged due to the company's fast growth. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Indeed, The Information reported on Thursday that OpenAI reached $12 billion in annualized revenue and surpassed 700 million weekly active ChatGPT users. Meanwhile, the Times suggested that the number may be closer to $13 billion and could hit $20 billion by the end of the year. It also helps that the Trump administration's AI Action Plan and ongoing talks with Microsoft could push OpenAI toward its goal of becoming a fully for-profit company. As a result, the latest round was led by Dragoneer Investment Group, which invested $2.8 billion in one of its most significant bets to date. Other new backers included Blackstone (BX), TPG (TPG), and T. Rowe Price (TROW), alongside well-known firms like Andreessen Horowitz, Founders Fund, Sequoia Capital, and Fidelity. Interestingly, though, some early investors were reportedly frustrated because they received smaller allocations in this round, as OpenAI prioritized bringing in strategic partners to support its next growth phase. Is MSFT Stock a Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and two Holds assigned in the last three months. Furthermore, the average MSFT price target of $614.72 per share implies 17.3% upside potential.