Podcast Summary
New Weight Loss Drugs: Pfizer is developing three new weight loss drugs, two of which are GLP-1 candidates, and plans to release data on one of them, Denugla Prong, later in 2024. Other companies like Viking Therapeutics, Structured Therapeutics, Altamune, Zeland Pharma, and Amgen also have obesity drug candidates in mid-stage development.
Pfizer is developing three new weight loss drugs, two of which are GLP-1 candidates similar to Novo Nordisk's Wigovie. The third drug's mechanism remains undisclosed. Pfizer plans to release data on one of the candidates, Denugla Prong, later in 2024. Several other companies, including Viking Therapeutics, Structured Therapeutics, Altamune, Zeland Pharma, and Amgen, also have obesity drug candidates in mid-stage development. Growth stocks are attempting to recover from losses, with the NASDAQ up 0.5%. Consumer confidence, as measured by The Conference Board, came in slightly lower than expected at 100.4. The expectations index fell to its lowest level since October 2011, but the mean one-year ahead inflation expectations decreased to 5.3%, only slightly above the 2000-19 average. The Fed is likely to continue believing that inflation expectations are well-anchored. Housing prices showed mixed results, with the S&P CoreLogic Case Shiller Home Price Index Composite for 20 cities rising 7.2% annually, but the FHFA House Price Index only increasing 0.2% month-on-month.
Airbus, Carnival, Tesla: Airbus stock plummeted after reducing delivery goals and financial targets, while Carnival shares rose on better-than-expected earnings. Tesla recalled Cybertruck models for separate issues. Hedge funds sold tech and chip stocks, affecting Airbus and Tesla. UBS upgraded Cloudflare and boosted its price target.
The stock market saw significant movements on Thursday, with Airbus experiencing a sharp decline after reducing its delivery goals and financial targets. The drop in Airbus' stock price erased over 10 billion dollars from its market value. Contrastingly, Carnival's shares rose after the cruise operator reported better-than-expected earnings for the quarter. Elsewhere, Tesla issued recalls for two separate issues with its Cybertruck models. In the investment world, hedge funds have continued to sell tech and chip stocks due to concerns about the semiconductor sector. Airbus and Tesla's developments weighed heavily on their respective stocks, while Carnival's earnings beat provided a positive boost. UBS upgraded Cloudflare's stock and raised its price target, while global traffic manager momentum and better-than-expected checks contributed to a more balanced risk reward for the shares. Overall, these events highlight the volatility and interconnectedness of the global stock market.
Hedge fund trends: Hedge funds have shifted from buying tech stocks to net-buying finance stocks, driven by long buying and short covering, but the trend may not continue.
Hedge funds have been heavily buying tech stocks while net-selling in other sectors, such as finance, this year. However, the trend has recently reversed, with finance stocks becoming the most net-bought sector in the past week. This shift was driven by a combination of long buying and short covering. Despite Infotech remaining a popular net-bought sector, the attention has shifted towards finance stocks. It will be interesting to see if this trend continues in the coming weeks. Overall, the market is constantly evolving, and staying informed about these shifts can help investors make informed decisions. For more in-depth analysis and coverage on stocks and ETFs, tune in to Wall Street Lunch and check out seekingoffa.com for transcriptions and subscription options.