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Economic releases : The Labor Department releases its monthly consumer price index and producer price index on Thursday and Friday, respectively. For that reason, we'd be content if the July figure doesn't indicate a resurgence of rising wholesale costs, which is a concern given a recent uptick in energy prices. On Tuesday before the opening bell, Club holding Eli Lilly (LLY) reports. Finally, Club names Walt Disney (DIS) and Wynn Resorts (WYNN) will report on Wednesday after the closing bell. In preparation for these releases, be sure to check out our first-quarter earnings report card .
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Pacific Western Bank signage is displayed outside of bank branch in Beverly Hills, California on May 4, 2023. Check out the companies making the biggest moves in premarket trading:PacWest — The regional bank popped 39% in premarket trading, adding to its nearly 82% gain on Friday. American Airlines — Shares gained about 3% in premarket trading Monday after JPMorgan upgraded the stock to overweight from neutral. Viatris — Shares added 2.4% after the health-care stock topped earnings expectations and reaffirmed full-year guidance, despite a shortfall in revenue. Fortinet — The cybersecurity company added 3.3% after being upgraded to buy from neutral by Bank of America.
Berkshire Hathaway — The conglomerate's A shares rose more than 1% as investors cheered a strong earnings report from Warren Buffett's company. Tyson Foods — Shares plummeted 15% after the food production company posted an unexpected loss for the recent quarter and cut its revenue outlook for the year. PacWest - The regional bank stock held on to a gain of about 3% on Monday. Six Flags posted a narrower-than-expected loss of 84 cents per share, compared to expectations of a per-share loss of 89 cents, according to FactSet. Six Flags posted revenue of $142.2 million, greater than the expectation of $132.6 million, with CEO Selim Bassoul calling the results "proof points" that its new strategy is working.
With only a small fraction of the S & P 500 left to report quarterly earnings, investors are now turning their focus to another major hurdle for the markets and economy: the debt ceiling crisis. Earlier this week, we looked back to debt limit crisis of 2011 for potential lessons. The protracted fight ultimately ended in an agreement in early August of that year, but it was a choppy summertime ride for investors. Within the portfolio, Wynn Resorts will report Tuesday, after the closing bell, and Disney will report on Wednesday, after the closing bell. Estee Lauder (EL) and Emerson Electric (EMR) reported earnings before the opening bell.
For the immediate economic and earnings and growth outlook, it almost seems irrelevant whether regional bank stocks rally, steady or sell off more next week. Regional banks were top of mind for investors this past week, as First Republic failed , the SPDR S & P Regional Banking ETF tumbled more than 10% — twice the five-day loss in the S & P 500 Energy Index, the hardest hit S & P sector — and lenders such as PacWest Bancorp and Western Alliance Bancorp lost billions in market value. And, for all that, the S & P 500 only fell about 0.75% this week. Now the conventional wisdom on Wall Street is that regardless of how the regional bank stocks trade, it's a given that bank lending officers are going to pull in their horns and risk management desks will grow more risk averse. But stocks still face a host of issues, none of which are going away next week.
[1/2] Sanofi logo at the company's headquarters during the annual results news conference in Paris, France, February 4, 2022. Sanofi in 2009 acquired the rights to Auvi-Q, an epinephrine auto-injector intended to compete with EpiPen. Injection of epinephrine is used to treat serious and sometimes life-threatening allergic reactions to foods, medications, bee stings and other causes. Circuit Court of Appeals last July agreed, noting that the exclusive contracts in question were "a normal competitive tool within the epinephrine auto-injector industry." The 10th Circuit added that Sanofi could have competed on those terms, but instead chose initially to market Auvi-Q as a more expensive, premium product.
LONDON, March 30 (Reuters) - British drugmaker GSK (GSK.L) has signed deals with three companies allowing them to make inexpensive generic versions of its long-acting HIV preventive medicine for use in lower-income countries, where the majority of new HIV cases occur. The injected drug cabotegravir was approved by regulators in the United States in late 2021. Last July, GSK announced a program with the United Nations-backed healthcare organisation, the Medicines Patent Pool, aiming to get poor countries access to new HIV therapies far earlier than they did for previous HIV medicines. GSK said last year the new program could result in the generic form of its injection being available in lower-income countries beginning in 2026. The generic copies will be supplied in 90 countries, subject to regulatory approvals there, the statement said.
LONDON, March 2 (Reuters) - Drugmaker Viatris Inc (VTRS.O) warned on Thursday that it will stop selling some essential medicines in the UK that are already in short supply unless the British government makes changes to its voluntary medicines pricing agreement. If that level is exceeded, the government recoups the excess from suppliers of branded drugs. His colleague Viatris' Head of Europe Artur Cwiok named Germany and Portugal as countries where governments were weighing changes to drug pricing. If Viatris opted to leave that pricing scheme, it would have to pay a rate in the statutory scheme the government says will rise to 27.5%. Pharma companies AbbVie Inc (ABBV.N) and Eli Lilly and Co (LLY.N) withdrew from the pricing scheme in January.
Union Pacific — Shares rose 9.5% after the company said CEO Lance Fritz would have a successor named this year. Best Buy — The retailer slipped 1.5% in the premarket after being downgraded to market perform from outperform by Telsey Advisory Group. The Wall Street firm said it expects high inflation and rising interest rates to weigh on Best Buy's 2023 sales and profits. The Omaha-based company used $2.855 billion to buy back shares in the quarter. Alliant Energy — Shares dropped more than 3% after the company reported that it intends to offer $500 million of its convertible senior notes due 2026.
Union Pacific – Union Pacific's stock nearly 10% after the company announced that its current CEO would step down in 2023. Fisker – Shares of the electric vehicle startup surged more than 27% after Fisker maintained its 2023 vehicle production target and said it spent less than anticipated in 2022. To be sure, the company posted a larger-than-expected loss and revenue miss for the fourth quarter, according to StreetAccount. Alphabet — Google's parent company gained 0.6% after Bank of America reiterated its overweight rating, citing the technology giant's opportunities within artificial intelligence. Zillow — The online real estate platform gained 2.4% after JPMorgan initiated coverage of the stock with an overweight rating.
The optimism about inflation and the U.S. economy is quickly waning on Wall Street, and the early 2023 rally for stocks is fading. The market was under pressure again on Friday after a hotter-than-expected reading for personal consumption expenditures, sending rates higher and stocks lower. Economic updates Next week brings a new round of economic indicators to see how the sticky inflation is affecting consumers and business. Other looks at the economy will come through key earnings reports. Speech by Fed Governor Christopher Waller Friday: 9:45 a.m. Markit Services PMI 10:00 a.m. ISM Services PMI 3:00 p.m.
The latest Fed projection for the so-called terminal rate — the level where the rate hikes stop — was just over 5%. Before this past week, those intraday levels hadn't been seen since November 2022. ET: ISM Services Looking back January's hot reading on core PCE on Friday was the most influential economic number of the past week. In Club earnings this past week, Nvidia (NVDA) was certainly the highlight. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Russia has been cut off by the pharmaceutical company that produces Viagra, according to the Washington Post. On Wednesday, Russia also announced that 36 companies were raring to produce a domestic alternative. Viatris initially stopped clinical trials in Russia after the Kremlin launched an invasion into Ukraine in February 2022, the Post reported. Throughout the year, Viatris suffered financial losses in Russia due to supply chain issues but continued to supply pills to pre-existing patients. According to the Post, Ukraine adopted a law in May 2022 which banned the sale and distribution of medication from companies that maintained ties with Russia.
Much as he would have liked to significantly increase supplies, Biosca-Reig said he couldn't justify investing millions of euros in new production lines unless he was paid more for the generic drug to cover sharply rising costs. European generic drugmakers say the tender system and regulated prices have fuelled a race to the bottom, and European firms are being undercut by suppliers from Asia. BRUSSELS, WE HAVE A PROBLEMThe European Medicines Agency (EMA) and European Union lawmakers acknowledge there is a problem. Half the generic medicines sold in Spain are priced below 1.60 euros per box or bottle, the country's generics manufacturing association said. But companies with smaller market shares, such as Israel's Teva (TEVA.TA), which has 5% of the region's amoxicillin market according to Medicines for Europe, are constrained.
Here are 10 of those names: Two pharma biotech companies made the cut, including Viatris , which has the highest earnings yield on the list. In the banking space, KeyCorp is among the names that should fare well, according to Goldman Sachs. Also on the list is Microchip Technology , which has an 8% earnings yield and 4% estimated earnings growth in 2023. Lastly, Molson Coors Beverage should also outperform amid decelerating inflation, according to Goldman. Molson Coors has an 8% yield and it's estimated earning growth for 2023 is 6%, per Goldman.
Teva Pharmaceutical is hard to like as it continues to be weighed down by underperformance in some business areas, JPMorgan says. The new price target implies upside of just 5.5% from Friday's close. Schott noted the company has been able to continue paying down debt as a positive, but said it would need to continue allocating cash pay towards this. The stock's performance could be impacted by improvements in generics, a favorable opioid settlement or if the company is able to stave off competition on its migraine medication Ajovy. Teva shed 2.3% in the premarket and is up 18.4% compared with the start of the year.
The Justice Department is pursuing an insider-trader case involving an executive at Viatris, a healthcare company. A top technology executive at the healthcare company Viatris Inc. was charged with sharing illicit stock tips that netted millions of dollars for a friend who traded on them, according to the Justice Department. Ramkumar Rayapureddy, the global chief information officer at Viatris , shared undisclosed information about a regulatory drug approval, his employer’s financial results and a planned merger with a division of Pfizer Inc., authorities said. When he worked at Mylan NV, a predecessor company to Viatris, Mr. Rayapureddy allegedly leaked the information to a friend, Dayakar Mallu, according to an indictment.
Check out the companies making the biggest moves midday:Carvana — Carvana shares shed more than 15%, with trading briefly halted at one point due to volatility. Walgreens raised its fiscal year 2025 sales goal for its U.S. health-care business to $14.5 billion to $16.0 billion, from $11.0 billion to $12.0 billion to account for the deal. Viatris — The global health-care company rallied 16% after it announced it intends to create an ophthalmology franchise by acquiring Oyster Point Pharma and Famy Life Sciences. The toymaker's shares shed nearly 60% last Friday after it delivered disappointing quarterly results and issued a weak forward guidance that included a fourth-quarter loss. DoorDash — Shares of the food delivery company rallied 2.5% after being upgraded by Oppenheimer to outperform from perform.
Cramer's lightning round: Cano Health is a buy
  + stars: | 2022-11-04 | by ( Krystal Hur | ) www.cnbc.com   time to read: +1 min
Loading chart...Cano Health Inc : "I think it's a buy." I do think that [Johnson & Johnson ] is going to spin off its consumer product company, and that's going to be very, very good." But I think you're okay." Loading chart...Nike Inc : "I don't think buying Nike here is that bad." Disclaimer: Cramer's Charitable Trust owns shares of Johnson & Johnson.
There are two big hurdles for markets in the week ahead - another potentially hot consumer inflation report and the Congressional midterm elections. "100% of the time, the S & P 500 has been up 12 months after the midterm election." Midterm rallies Stocks tend to gain in the final months of midterm election years, and strategists have been expecting the market to move higher. CFRA Chief Market Strategist Sam Stovall said even when interest rates are climbing, the midterm election has been a catalyst for stocks. He examined market performance in other midterm election years when interest rates were going up.
It is very premature, in my view, to think about or be talking about pausing our rate hikes. The news sent those stocks reliant on China for growth — Starbucks, Estee Lauder and Wynn Resorts, among many others — higher. Or bad news could just be bad news if weak data signals a recession ahead. And good news could be good news: for example, if China reopens and U.S. companies exposed to the region see a boost in demand. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Some of the biggest stock winners in this week's volatile market action included two big pharmaceutical names analysts expect to rally in the months ahead. To scope out this week's market outperformers, CNBC Pro screened for S & P 500 stocks with the best week-to-date gains. Though only 32% of analysts have a buy rating on the stock, the consensus price target suggests shares can rally another 64.2%. Despite slumping about 36% this year, shares are poised to rally 15% based on the consensus price target. About 38% of analysts say PepsiCo is worth buying, with shares expected to rise 6.4% — based on the consensus price target.
Investors have looked to health care as a port in the storm during the stock market's volatility over the last year. In health care, "you still have companies that are throwing off good yield, so you get stability and good dividend yields." Biotech and pharmaceuticals industries have an average dividend yield of 2.6%, ranking just behind the consumer staples, utilities, and energy sectors. Just two stocks made the grade: drug maker AbbVie and pharmacy and health services giant CVS Health. The company, which includes pharmacy benefits as well the Aetna health insurance division, has a dividend yield of 2.1%.
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