Latest news with #Homestretch
CNBC
12 hours ago
- Business
- CNBC
Here's what is driving Tuesday's stock rally — plus, an analyst comes to Eli Lilly's defense
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. Markets: Stocks are rallying on Tuesday, overcoming yet another premarket decline like we saw Monday. The data center and AI infrastructure trade — ranging from semiconductor stocks like Nvidia and Broadcom to industrials like GE Vernova and Eaton — is powering the market higher in reaction to Meta Platform's 20-year agreement to buy nuclear power from Constellation Energy . The Club owns all these stocks, except for Constellation Energy. Meanwhile, there was no real news on the trade negotiation front. A big thing to watch on trade in the coming days is whether President Donald Trump and Chinese leader Xi Jinping do, in fact, hold a call. The White House has indicated such a conversation is likely to happen this week. Eli Lilly: JPMorgan reiterated its overweight rating and $1,100 price target on Club name Eli Lilly in a research note on Tuesday. The main takeaway from the note was that volume trends for Lilly's GLP-1 drug portfolio — Zepbound for obesity and Mounjaro for type 2 diabetes — were running ahead of JPMorgan's expectations, resulting in the analysts raising their already above-consensus revenue forecast for the second quarter. JPMorgan cited two factors behind the increased estimates: strong growth in the obesity market, with prescriptions up approximately 25% quarter over quarter, and Eli Lilly capturing nearly three-quarters of all new patient starts. Importantly, JPMorgan thinks this strong category and share growth will help Lilly's prescriptions continue to grow despite the CVS formulary change to make rival Novo Nordisk's Wegovy the preferred GLP-1 for weight loss. This goes into effect on July 1. However, according to Lilly, it is only expected to impact roughly a couple hundred thousand patients. JPMorgan also doesn't think the Novo Nordisk and CVS deal will lead to a GLP-1 price war. The script trends and JPMorgan's belief that Lilly can offset any CVS headwind is very encouraging — especially on the CVS angle because that bit of news has been a huge overhang on Lilly shares ever since it was announced May 1. The broader pharmaceutical group has also been under pressure due to uncertainty tied to possible sectoral tariffs and drug pricing regulation. Lilly stock had fallen more than 20% in the month of May before mounting a modest rally in recent days. We added to our Lilly position a few weeks ago at around $715 per share. Before Eli Lilly reports second-quarter earnings in August, the next major event is the 2025 American Diabetes Conference, taking place between June 20 to June 23. There are expected to be several high-profile data readouts and presentations at the conference. In a separate note by JPMorgan, the analysts said investors should watch out for the full late-stage trial results from Eli Lilly's oral GLP-1 orforglipron. Eli Lily shares surged in April after GLP-1 pill was successful in a late-stage trial for type 2 diabetes, potentially paving the way for Food and Drug Administration approval in early 2026. Similarly, another readout to watch is more complete trial data for Novo Nordisk's CagriSema, which is a combination of an amylin analog called cagrilintide along with semaglutide, the active ingredient behind Wegovy and Ozempic. It targets fat loss and was thought to be Novo's next-generation product to follow up Wegovy. However, its preliminary trial results disappointed earlier this year. Amgen is also expected to release its mid-stage trial data on MarTide, which is a once-monthly GLP-1 injection. Finally, JPMorgan said we could see some data on one of Elil Lilly's next-gen weight loss drugs, bimagrumab. That was one of the assets that Lilly acquired as part of its acquisition spree in 2023 , and muscle mass preservation is one of its distinguishing features. Up next: Club name CrowdStrike reports after the closing bell on Tuesday. The LSEG consensus estimate is for revenue of $1.10 billion and EPS of 65 cents. We expect management will reaffirm its outlook that net new annual recurring revenue growth will reaccelerate in the second half the fiscal year, driven by strong adoption of the Falcon Flex platform and the expiration of the Customer Commitment Package incentive program. Other companies report are Hewlett Packard Enterprise and Asana . Thor Industries and Dollar Tree report before the opening bell on Wednesday. On the economic data side, there's weekly mortgage applications, the ADP private employment report, and ISM's look at the services industry. (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.
CNBC
a day ago
- Business
- CNBC
Where we stand on Bullpen stock Boeing after its incredible 7-week run higher
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. Markets: Stocks were mixed to start the week . The market on the first trading day in June stumbled around the open and traded lower in the absence of any real progress on trade talks between the U.S. and China, with both countries now accusing the other of violating their Geneva trade agreement announced on May 12. Industrials and other cyclicals also felt some pain in response to President Donald Trump doubling tariffs on steel imports to 50%. Underwhelming economic data, including construction spending and ISM manufacturing, also sparked some weakness. However, the market started to cut its losses shortly before 11 a.m. ET after a senior White House official told CNBC's Eamon Javers that Trump and Chinese President Xi Jinping were likely to speak later this week. This is the same storyline that helped the market recover Friday afternoon from a sell-off earlier in the session. A few key companies, including Club names Broadcom and CrowdStrike , are set to report quarterly results later this week. But overall, we're in a quiet stretch for earnings. As a result, the market will likely be driven more by economic data and trade-related headlines. That's not necessarily a bad thing, but it helps explain why the market is so fixated on every new development out of Washington. Update: Bullpen name Boeing was on the move Monday after analysts at Bank of America upgraded the stock to a buy rating, with a new high price target of $260 per share. That represents more than 25% upside to Friday's close. Shares rose over 2% on Monday. Boeing has had quite a run over the past seven weeks. We added shares of the jet maker to our Bullpen watch list on April 10, because we believed the company would be the No. 1 beneficiary of trade deals with other countries. This thesis quickly proved true. Shortly after the U.S. and the UK announced their trade deal in early May, British Airways' parent company, International Consolidated Airlines Group , IAG for short, announced an order of 32 Boeing Dreamliners in a deal valued at around $10 billion. Boeing later received a ton of orders during Trump's tour of the Mideast, including a record-breaking order of up to 210 aircraft from Qatar Airways. Boeing also got orders from airlines based in Saudi Arabia and the United Arab Emirates. BA YTD mountain Boeing YTD The trade war de-escalation, especially with China, has helped the stock, too. Boeing shares were trading around $210 per share on Monday, a level not seen since January 2024. At that time, the company was dealing with the immediate fallout from an incident in which a door plug on a 737 Max 9 blew out. It's easy to have regrets for not pulling the trigger on Boeing when we added it to the bullpen. Our thesis has played out just like we thought, and we would be enjoying this big move if we did. However, that doesn't mean the story is over, which is why we aren't removing it from the Bullpen. We continue to like the turnaround story here and the improvements to operations that CEO Kelly Ortberg has put in place. The trade deal angle is the cherry on top. We'll watch Boeing in the weeks and months ahead and look out for pullbacks in the stock because it could be one to buy in the event tariffs and trade wars re-escalate, causing the market to sell-off. Up next: There are no major earnings reports after Monday's closing bell. Dollar General , Signet Jewelers , and Chinese smart EV maker Nio are scheduled to report earnings before Tuesday's open. On Tuesday's economic calendar, it's data factory orders and durable goods orders data. The government also releases its Job Openings and Labor Turnover Survey, commonly referred to as JOLTS. It's the first of three reports on the job market , leading up to the Labor Department's monthly employment report. (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.
CNBC
4 days ago
- Business
- CNBC
Bad trade headline after another hit the market — but a key economic tracker is looking up
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. Markets and trade: Stocks dropped Friday but are still on pace for a solid weekly gain. The market broke down around noon ET after Bloomberg reported that the Trump Administration was planning to broaden restrictions on Chinese tech companies. According to the report, the new rule would require U.S. licenses for transactions with subsidiaries of companies on the U.S. sanctions list. It's too early to know the impact, if any, this could have on U.S. tech companies. One would think most companies have stopped selling to businesses associated with U.S.-sanctioned companies, like Huawei. Until we know for sure, these restrictions represent a negative headline for the tech sector and China-exposed companies that were hoping for the recent detente to continue. Developments over the past 24 hours suggest a notable decline in goodwill between the United States and China. On Thursday, Treasury Secretary Scott Bessent said on Fox News that trade talks with China "are a bit stalled." Then Friday morning, President Donald Trump said on Truth Social that China had violated its recent trade agreement with the U.S. He ended the post by saying, "so, much for being Mr. Nice Guy," in a possible foreshadowing of these new restrictions. We all know by now that everything is subject to negotiation with the current administration, and the technology sector is going to be a big focus of upcoming trade talks. The recent episode involving a threatened tariff increase on the European Union — delayed just days later — served as a key reminder not to overreact to individual headlines. But, the market probably needs the U.S. and China to get along for this rally to continue, so we have to stay focused on what the two countries are saying. Economic activity: Following Friday's data releases, the Atlanta Fed's GDPNow tracker was upwardly revised to a gain of 3.8% for the second quarter from its previous estimate of 2.2% on May 27. To be fair, the model isn't always the most accurate predictor of the growth rate of real gross domestic product. On Thursday, the Bureau of Economic Analysis released its second estimate of first-quarter gross domestic product, showing the economy declined 0.2%. That's much better than the GDPNow final forecast of down 2.7% for Q1 (or down 1.5% using the alternative model that adjusts for imports and exports of gold). So, that's our caution about reading too deeply into one model or forecast. Still, the tracker provides a useful gauge of economic momentum, and the fresh data suggest the economy rebounded solidly in the second quarter, with one month remaining. Up next: Two companies in the portfolio are scheduled to report next week: CrowdStrike and Broadcom . Other notable earnings report includes Campbell's, Dollar General, Five Below, and Lululemon. On the economic data side, it's jobs week. That means data on job openings on Tuesday, ADP private payrolls on Wednesday, and the government's nonfarm payrolls report on Friday. Some of the other key reports are ISM manufacturing, factory orders, and durable goods orders. (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.
CNBC
5 days ago
- Business
- CNBC
Why the stock rally fizzled — plus, our latest thinking on Goldman and Bristol Myers
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. Markets: Stocks rose modestly Thursday but were well off their highest levels of the session. The strong quarter from Club name Nvidia is lifting the broader artificial intelligence trade. As we explained in our earnings commentary Wednesday night, four positive developments have gone Nvidia's way since its annual GTC event in March, fueling additional momentum in its business. The market also got a brief boost after the U.S. Court of International Trade ruled President Donald Trump doesn't have the authority to impose "reciprocal" tariffs on virtually every nation. However, the path forward for this case is unclear, which is why the market's initial gains on the news didn't last. The Trump administration plans to take the case to the Supreme Court on Friday. Tariffs can still be imposed through alternative ways. For example, sector-specific tariffs remain an option, and the president can still invoke Section 232 to impose trade restrictions on the grounds of national security. Bank update: Goldman Sachs President and Chief Operating Officer John Waldron spoke at the Bernstein Strategic Decision Conference on Thursday. Shares were down on the session, underperforming the broader financial sector. The line that may have hit the stock was Waldron explaining that investment banking activity in the second quarter has not been as strong as in the first quarter. It's hard to get deals over the finish line in a highly volatile, uncertain environment like the market dealt with in April. "When you have this kind of volatility, you just fundamentally have a harder time prosecuting transactions that may be in your pipeline, but they don't happen as quickly as you might otherwise expect," Waldron said at the conference. Nobody should have been surprised by Waldron's comments. Peers have said similar things. For example, on May 19, we pointed out that JPMorgan said it expected investment banking fees in the second quarter to be down by a mid-teen percentage year over year. There are two other things to keep in mind: While volatility is bad for mergers-and-acquisition activity, as well as initial public offerings, it is a great thing for Goldman's trading desk. Waldron said Thursday that equity trading client activity has "remained robust" throughout the year, though levels for fixed income, currencies, and commodities (FICC) are now "slightly softer" than the company's strong results this time last year. FICC revenue increased 17% year-over-year in the second quarter of 2024. There has also been a significant pickup in capital markets activity over the past few weeks. We recently highlighted fresh signs of life in the initial public offering (IPO) market. More companies are filing to go public, including Omada Health, expected next week , targeting a market cap of slightly more than $1 billion. Goldman is involved in the Omada deal. This follows last week's IPOs of Hinge Health and MNTN . We're also starting to see more mergers and acquisitions (M & A), with a notable one this week from Club name Salesforce , which agreed to buy Informatica for $8 billion. With one month remaining in the second quarter, we expect muted investment bank fee growth when the banks report earnings in mid-July. However, a stronger second half for Goldman Sachs should be in store, provided the current pause in high tariffs remains in place. Cobenfy comments: Bristol Myers Squibb CEO Chris Boerner tried to assuage investor concerns about the company's key schizophrenia drug, Cobenfy, on Thursday. During the Wall Street Journal's Future of Everything conference, Boerner came to Cobenfy's defense after it failed a key late-stage trial in April that evaluated how it worked when used as an add-on treatment. He argued Thursday that the results "don't have really any impact on the long-term potential" of Cobenfy, explaining the focus has always been to use the drug as a primary treatment. "What we like about Cobenfy is we're seeing efficacy on par with, if not better than, all the existing therapies, but without some of the really onerous side effects," Boerner added, citing impacts from other treatments like significant weight gain. While this was welcomed commentary, the company argued a similar case when it reported earnings in late April. The surprising adjunctive trial result turned what we thought was a straightforward story of a drug with underappreciated potential into a more complicated "show me" situation. And what we need to be shown is better Cobenfy data in future trial readouts. That's why we haven't bought back any of the stock we sold in the low $60s a share earlier this year, as Jim Cramer explained on the Monthly Meeting last week. The stock was up about 1% to around $47 per share Thursday. Asked about the potential for pharmaceutical-specific tariffs, Boerner said that Bristol Myers would prefer the Trump administration take a different direction. But he added he's tried to communicate ways to "do it without messing things up." Whatever the Trump administration does, they have to recognize the "reality of the dynamics of biopharmaceutical manufacturing," he offered. "If you don't get that right, you will end up with supply constraints, and that's something nobody wants, including the administration. Incidentally, it's also why typically when you've had tariffs, pharmaceutical and biotech products have been excluded." Up next: It's another big night of earnings ahead with Club name Costco , Marvell Technology and Dell Technologies scheduled to report. Other companies reporting are Gap , American Eagle Outfitters , Ulta Beauty and Zscaler . There are no major earnings reports after Friday's close. On the data side Friday morning, we get the Federal Reserve's preferred inflation gauge — the personal consumption expenditures price (PCE) index. According to FactSet, PCE is expected to have risen 0.15% month over month in April and 0.12% on a core basis, which excludes volatile food and energy prices. That would mean increases in the headline index and the core of 2.5% and 2.2% year over year, respectively, marking slightly cooler readings than in March. (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.
CNBC
6 days ago
- Business
- CNBC
An Abbott competitor drops out — plus, a special circumstance for Nvidia earnings
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. Markets: Stocks edged down slightly Wednesday as investors awaited several major earnings reports after the bell, including quarterly results from Nvidia and Salesforce . The muted market action followed a strong S & P 500 rally on Tuesday, driven by President Donald Trump's decision to postpone the 50% tariff on European Union imports that he had threatened the previous Friday. Exiting TAVR : Boston Scientific announced in a filing Wednesday that it plans to exit the global transcatheter aortic valve replacement (TAVR) market. The medical device company said it made this decision based on recent discussions with regulators. Analysts at Stifel point out that this was a $200 million annual revenue business for Boston Scientific, and those sales should shift to competitors such as Medtronic , Edwards Lifesciences , and Club name Abbott Laboratories . Let's say Abbott picks up about one third of that market share, or about $65 million in annual sales. That won't provide a material uplift to Abbott's broader medical devices business, which analysts expect to generate about $23.16 billion of revenue in 2026. But one less competitor strengthens Abbott's market leadership, which we appreciate. CEO update: Wells Fargo CEO Charlie Scharf spoke at the Bernstein Strategic Decisions conference Wednesday. The most notable headline from the presentation was that Scharf said he felt "very, very confident" that the $1.95 trillion asset cap, imposed by the Federal Reserve in 2018 for past misdeeds at the bank, will be lifted. However, consistent with prior messaging, Scharf did not offer a specific timeline for when that might occur. "I don't speak for the Fed in terms of timing. They've got a very, very diligent process that they go through," Scharf said. "But our level of confidence in terms of where we are and how far we are down that road is extremely high." As we've written before , Wells Fargo will be better positioned for growth once the asset cap is lifted. In a post-cap environment, the bank will be able to allocate more capital to revenue-generating opportunities. Additionally, management will be able to dedicate more time to pursuing growth initiatives. We trimmed our Wells Fargo position earlier this month after the stock crossed above $76 per share for the first time since early March. At the time, we also raised our price target to $80 on the belief that the asset cap could be lifted this year. Nvidia earnings: It's a big night ahead with Nvidia and Salesforce set to report earnings after the market closes. Nvidia is the major market event. The stock was higher ahead of the release, building on Tuesday's more than 3% advance. Per LSEG, our data provider for earnings-per-share and revenue estimates, we're going to be looking at Nvidia's EPS, excluding the previously announced $5.5 billion inventory write-down of made-for-China chips that no longer comply with new export rules. But, like in quarters past, Nvidia's guidance will probably be more important to the direction of the stock than the reported results. Jim Cramer will be talking with Nvidia CEO Jensen Huang and Salesforce CEO Marc Benioff after earnings on "Mad Money." Up next : Other companies releasing quarterly results Wednesday evening include Agilent, SentinelOne, Pure Storage, HP Inc., and e.l.f. Beauty. Looking ahead to Thursday morning, Best Buy, Kohl's, Burlington Stores, Horel Foods, and Bath & Body Works are scheduled to report. On the data side, there's the second read on first quarter GDP, weekly jobless claims, and pending home sales. (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. 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.
