Good morning. Happy Friday. It’s the last day of the week, month and quarter.
The Asian/Pacific markets did well. China, South Korea, India, New Zealand and Thailand posted big gains; Malaysia and the Philippines were weak. Europe, Africa and the Middle East are up big. The UK, Denmark, France, Germany, South Africa, Finland, Switzerland, Spain, Italy, Austria, Sweden and the Czech Republic are leading. Futures in the States point towards a moderate gap up open for the cash market.
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The dollar is up. Oil and copper are up. Gold and silver are down. Bonds are up.
Stories/News from Seeking Alpha…
Game on, or game over?
Final arguments have been presented in a closely watched case that could determine the fate of the biggest tech acquisition in U.S. history. The trial included testimony from Microsoft (MSFT) CEO Satya Nadella and Activision’s (ATVI) Bobby Kotick as they faced off against lawyers from the Federal Trade Commission. The suit will also have profound implications on the Biden administration’s approach to antitrust enforcement, and recent crackdowns on the most prominent U.S. tech giants, as the agency flexes its muscles under the leadership of Lina Khan.
What are the concerns? Simply put, the FTC feels that the $69B tie-up between Microsoft – the company behind Xbox – and one of the best-known game developers would harm competition. Activision’s Call of Duty and World of Warcraft are some of the most popular gaming franchises, and turning Microsoft into the No. 3 gaming company in the world could limit rivals’ access to titles or raise prices for other gaming platforms. The FTC also said it would give the Xbox maker an unfair advantage in the new market for game subscriptions, as well as the emerging market for cloud gaming.
The trial and its timing are critical, as the transaction has a July 18 termination date – after which billions in breakup fees would need to be paid by Microsoft or terms would have to be renegotiated. Meanwhile, the commission is seeking a preliminary injunction to extend things until August, when an internal court judgment is due and can potentially drag things out for years. Both sides are now watching a pivotal decision by U.S. District Judge Jacqueline Scott Corley in San Francisco, who can make or break the deal over the next few days after hearing their closing arguments.
While the FTC trial is crucial, M&A investors are also keenly focused on the U.K., where the country’s antitrust regulator is set to hear an appeal on July 28 (the $69B deal was already approved in the EU, China, and other markets). Microsoft has gone to great lengths to assuage antitrust fears, like inking an agreement to bring Call of Duty to Nintendo (OTCPK:NTDOY) for the next decade, as well as an offer to extend access to Sony (SONY). It’s been a long slog since the deal was first announced on January 18, 2022, with shares of Microsoft (MSFT) and Activision Blizzard (ATVI) climbing 45% and 30%, respectively, since that date.
SA commentary: “It was right at the end of the hearings that the judge reminded one of the FTC lawyers that it’s not the harm to Sony that she cares about; it’s any harm to consumers,” Chris DeMuth Jr., Investing Group Leader of Sifting the World, told Seeking Alpha. “The FTC would have been better off if she had explained this to them at the beginning. The FTC hardly mentioned consumers, let alone proved that they’d be harmed, while operating more as Sony lobbyists than American law enforcers. It was a strange spectacle unlikely to be the first such vertical merger to be blocked this century.” (25 comments)
No recession in sight
In its third estimate of GDP, the Department of Commerce reported that U.S. economic growth expanded by 2.0% Y/Y in Q1, revised from its prior estimate of 1.3% and exceeding economists’ expectation of 1.4%. The change reflected upward revisions to exports and consumer spending, offset by downward projections of nonresidential fixed investment and government spending. The news pushed U.S. Treasury yields higher and widened the inverted yield curve further, while the stock market ended the session broadly higher. “Investors tend not to focus on revisions, even as the revisions have tended to become wilder,” noted UBS chief economist Paul Donovan. (99 comments)
Just do it.
Shares of Nike (NKE) are down 4% in premarket trading after posting its first earnings miss in three years. A slight margin beat and strong sales tally out of China helped offset the company’s profit figures as it “drives to healthy full price growth.” During the earnings call, CFO Matthew Friend said Nike was aiming for above-average margin improvement in fiscal 2024, with mid-single-digit revenue growth. First-quarter revenue growth will likely remain flat or rise marginally, however, given Nike’s decision to tighten first-half buys and restrain inventory. (19 comments)
FedNow
Upgrading the Fed’s legacy capabilities in terms of efficiency and competitiveness, the FedNow real-time payment system is set for a launch in late July. Fifty-seven financial institutions and service providers, including JPMorgan Chase (JPM) and Wells Fargo (WFC), have signed up for the new innovative infrastructure. The network aims to eventually reach all 10,000 U.S. financial institutions and the discussion is already kicking off on Seeking Alpha. Some are citing privacy concerns in the comments section, while others say the government is already involved in the entire system. (36 comments)
Today’s Economic Calendar
8:30 Personal Income and Outlays
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker Hughes Rig Count
3:00 PM Farm Prices
What else is happening…
Double whammy: Dutch curb chipmaking gear sales to China, U.S. next.
Virgin Galactic (SPCE) kicks off space tourism era with 1st commercial trip.
Warren Buffett’s Berkshire (BRK.B) boosts Occidental (OXY) stake to 25%.
Google (GOOG, GOOGL) will pull Canada news links in wake of new law.
PG&E (PCG) seeks $7B federal loan to cut California wildfire risk.
China NBS factory activity contracts in June for third month in a row.
U.S. considers sending long-range missile system to Ukraine.
CDC director endorses RSV shots for certain adults aged 60 or older.
FTC antitrust lawsuit against Amazon (AMZN) expected in coming weeks.
Mega-caps absent: Goldman adds 39 stocks to Sharpe Ratio basket.
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Good morning. Happy Thursday.
The Asian/Pacific markets were mixed. New Zealand and Thailand did well; Hong Kong and South Korea were weak. Europe, Africa and the Middle East lean to the upside. Poland, France, Greece, Norway, Italy and Sweden are up; the UK and the Czech Republic are down. Futures in the States point towards a positive open for the cash market.
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The dollar is up. Oil and copper are down. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Don’t stress
All 23 banks have met minimum capital requirements under the Federal Reserve’s 2023 bank stress tests and would still be able to lend in a hypothetical “severe global recession.” The variables under this year’s exam included losses of up to $541B stemming from items like mortgages, credit cards and trading activities, as well as a 40% decline in commercial real estate prices and the unemployment rate rising to a high of 10%. While the largest U.S. banks passed the test, it was only a few months ago that three mid-sized regional banks failed. Higher interest rates led to lower asset values and higher deposit funding costs, at the same time that customers rushed to exits by pulling their deposits.
Quote: “Today’s results confirm that the banking system remains strong and resilient,” said Fed Vice Chair for Supervision Michael S. Barr. “At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses.”
The annual health checks dictate the required size of each bank’s “capital buffer,” which refers to the extra cushion of capital that’s set aside on top of the regulatory minimum needed to support daily business. They’re important for stockholders because the results determine the level of dividends and amount of stock buybacks the banks will be permitted to do. Lenders will be allowed to disclose their plans after the market closes on Friday, but some have indicated that they’ll wait to announce their returns until they get a clearer picture of new capital requirements.
SA commentary: “The bigger changes for banks are likely to come later, as the Fed contemplates new rules tied to Basel III Endgame (also called “Basel IV”) and the failures of Silicon Valley Bank and First Republic,” writes SA analyst Stephen Simpson. “The largest banks seem less vulnerable, but capital requirement changes could meaningfully impact the profitability of regional banks,” like Fifth Third (FITB), Key (KEY), Regions (RF) and others. (151 comments)
Hollywood strike
U.S. production houses fear a looming shutdown as actors are preparing to join writers in a double strike this weekend. Actors are demanding higher pay, along with writers who have been on strike for almost nine weeks now. A walkout by the Writers Guild of America has already shut down the final season of Netflix’s (NFLX) Stranger Things, an HBO (WBD) prequel of Game of Thrones, and paused production on Disney’s (DIS) Thunderbolts and Blade. Other studios involved include Amazon (AMZN), Apple (AAPL), NBCUniversal (CMCSA), Paramount (PARA) and Sony (SONY). (3 comments)
Artificial sweeteners
Aspartame, an artificial sweetener commonly used in diet sodas and low-calorie packaged food, is expected to be declared a possible carcinogen next month by the World Health Organization’s cancer research arm. A joint FAO/WHO panel on food additives is also reviewing aspartame use and will announce its findings around the same time. While the new ruling could have a major impact, the IARC has historically faced criticism for needlessly causing alarm. Also expect a response from beverage giants such as Coca-Cola (KO), PepsiCo (PEP) and Dr Pepper/Snapple (KDP). (17 comments)
Most crowded shorts
With positioning having an increasing influence on stock prices, Citi is adding a new Short Stock Crowding Model to help investors identify opportunities. While not a signal to buy or sell any stocks, the list helps gauge risk for stocks to assist in adjusting positioning, with the “traditional longer-term, long-only investor” becoming “less dominant,” Citi says. Some of the most crowded shorts include Schlumberger (SLB), McDonald’s (MCD), Nvidia (NVDA) and Alphabet (GOOG) (GOOGL). See the full list of the most and least crowded short positions. (59 comments)
Today’s Economic Calendar
8:30 GDP Q1
8:30 Initial Jobless Claims
8:30 Corporate Profits
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
What else is happening…
Micron Technology (MU) pops as Q3 loss not as bad as feared.
Apple (AAPL) nears $3T, but Wedbush thinks it could be worth more.
Overstock (OSTK) starts integrating Bed Bath (OTCPK:BBBYQ) assets.
Office REIT stocks dip as vacancy rates rise, Fed poised to hike.
Virgin Galactic’s (SPCE) first commercial spaceflight set for later today.
Why did Carvana (CVNA) jump? Shorts are getting put to the test.
Uranium can potentially provide shelter from an economic meltdown.
Microsoft (MSFT)-Activision (ATVI): Ruling on FTC suit next week.
Nvidia’s (NVDA) revenue could be hit by new AI chip curb – analysts.
Consumer jolt: General Mills (GIS) CEO says no food disinflation yet.
Good morning. Happy Wednesday.
The Asian/Pacific markets leaned up. Japan, Hong Kong, India, Australia and New Zealand did well; South Korea and Thailand were weak. Europe, Africa and the Middle East are doing great. The UK, Denmark, Poland, Germany, Greece, Finland, Norway, Spain, the Netherlands, Italy and Sweden are leading. Futures in the States point towards a negative open for the cash market.
————— Online Course: Jason Leavitt’s Masterclass in Trading —————
The dollar is up. Oil and copper are down. Gold and silver are down. Bonds are up.
Stories/News from Seeking Alpha…
Ending the drought
Things are starting to defrost for the IPO market after being frozen for much of the past 18 months. Faced with rising interest rates, investors dumped high-flying growth companies by turning to more profitable alternatives, but as the rotation turns the corner, sentiment is now boiling over to public listings. The recent successful IPO of Mediterranean restaurant chain Cava (CAVA) continues to cook up optimism among issuers and bankers, with the stock soaring 107% over its initial pricing in less than two weeks of trading.
On tap: Set to debut this morning is Korean BBQ group GEN Restaurant (GENK), which is hoping to replicate the success of Cava. While it’s a smaller IPO, there are another four listings this week that are set to raise over $300M each. The largest is Vesta Real Estate (VTMX), which develops and manages industrial properties in Mexico, but SA Investing Group Leader Donovan Jones is cautious about the company given the history of depreciation of the peso against the dollar. Other big deals to watch are Kodiak Gas Services (KGS), a natural gas compression outfit based in Texas, as well as for-profit thrift store operator Savers Value Village (SVV) and specialist insurer and reinsurer Fidelis (FIHL).
Another sign of how the market is broadening is that each of the coming IPOs is from a different sector. Many conversations are also taking place across the exchanges, centering around whether now is the time to gear up and go. “My phone is already ringing,” declared NYSE (ICE) President Lynn Martin, adding there are plenty of “green shoots.” She’s also encouraged by signs of demand from institutional investors and noted one particular industry that has had a very positive reception.
Bullish signs: For those looking for exposure to the broader IPO market, the Renaissance IPO ETF (IPO) has returned 32% this year, compared to the 14% gain of the S&P 500. Renaissance Capital has even counted 46 U.S. IPOs YTD, up 21% from the same period last year, and firms have raised proceeds of $7.6B, up 91% from a year ago. While the Fed has recently suggested it would raise rates two more times in 2023, it did opt for a skip during its June meeting and is definitely taking its foot off the accelerator. Investors might also be eager to consider discounts or bargains on new shares, now that a recovery has been seen in many of the beaten-down names on Wall Street.
Export curbs
The U.S. is reportedly weighing new curbs on AI chip exports to China, marking the latest fight in the battle over silicon. Leasing of cloud services to Chinese AI companies may also be restricted, as well as other restraints on U.S. investment in China. The news pushed chip stocks lower before the bell, led by AMD (AMD) and Nvidia (NVDA). The latter’s A800 chips, which were launched in response to last year’s export rules, could be included in the new measures. (27 comments)
Stress test
The Federal Reserve is set to release the results of its annual bank stress tests later today following the recent banking crisis triggered by Silicon Valley Bank (OTCPK:SIVBQ). Despite the regional bank failures, experts anticipate the 23 lenders being tested will show capital in excess of regulatory minimums, securing their buybacks and dividends. “The stress test results will likely have fewer surprises as banks have learned to navigate the process more smoothly,” said SA analyst Stephen Simpson. “The bigger unknowns are tied to Basel IV implementation and new post-SVB rules.” (1 comment)
Dropping the axe
Three months after Credit Suisse’s (CS) government-orchestrated rescue, UBS (UBS) is likely to fire over half of the Swiss lender’s employees starting in July. Among those bearing the brunt of the layoffs include bankers, traders and support staff. Two more rounds of cuts have been tentatively planned for September and October, as UBS seeks to save $6B in employee expenses over the coming years. The developments follow layoffs at investment banking giants including Morgan Stanley (MS), Goldman Sachs (GS) and Citigroup (C) amid a slowdown in M&A activity. (2 comments)
Today’s Economic Calendar
7:00 MBA Mortgage Applications
8:30 International Trade in Goods (Advance)
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
9:30 Powell Speaks at European Central Bank Forum
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $22B, 2-Year FRN Auction
1:00 PM Results of $35B, 7-Year Note Auction
What else is happening…
Regeneron (REGN) stumbles after FDA rejects high-dose Eylea.
Walgreens Boots Alliance (WBA) under pressure from earnings outlook.
Fidelity is latest Wall Street titan to join spot bitcoin (BTC-USD) ETF race.
Coinbase (COIN) benefits as Bitcoin (BTC-USD) resumes its ascent.
Airline stocks rip higher as Delta (DAL) sees strong travel demand.
Consolidation: Google (GOOGL) lays off staff at mapping app Waze.
Trucking shares rally with potential Yellow (YELL) bankruptcy factored in.
Russia poised to surpass Saudi Arabia as China’s top oil supplier.
Heat waves seen driving Generac (GNRC) generator demand.
Homebuilder, construction stocks in focus on higher home prices.
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Good morning. Happy Tuesday.
The Asian/Pacific markets leaned up. China, Hong Kong, India, Australia and Singapore did well; Japan, Taiwan and Thailand were weak. Europe, Africa and the Middle East lean to the downside. Russia is up, but Denmark, Poland, Norway, Israel, Sweden and the Czech Republic are down. Futures in the States point towards a positive open for the cash market.
————— Online Course: Jason Leavitt’s Masterclass in Trading —————
The dollar is down. Oil and copper are down. Gold and silver are down. Bonds are up.
Stories/News from Seeking Alpha…
The last mile
The world’s biggest monetary policymakers are descending on Sintra, Portugal, for the ECB’s annual retreat on central banking. The conference brings together bank governors, academics, financial market officials, and others, to exchange views on current policy issues. This year’s forum is entitled, “Macroeconomic Stabilization in a Volatile Inflation Environment,” and will discuss how to get price pressures back to target amid a fragmenting global economy, rapid changes in energy markets and Russia’s war in Ukraine.
Price stability: Speeches from central bank chiefs from the U.S., Europe, the U.K. and Japan will be closely watched, especially after Fed Chair Jay Powell reiterated that more rate hikes are expected this year. While inflation has been coming down in the U.S., it still remains elevated above the Fed’s 2% target, with tech stocks and interest-rate sensitive sectors coming under some pressure since his testimony to Congress last week. Markets will also get the latest dose of economic data on Friday, as the Commerce Department publishes the PCE price index, or the Fed’s favorite inflation gauge. See what central bankers predicted at last year’s forum.
Economies have so far proved more resilient to rate hikes than most had expected, with the Fed’s benchmark rate now north of 5%. There are several explanations for the phenomenon, ranging from pandemic-era forces and tight labor markets to wage gains and consumer spending. It also takes time for higher rates to filter through the economy, with many economists still anticipating a recession over the next six to 18 months if central banks extend their hiking cycles. The yield curve between the 2-Year Treasury (US2Y) and 10-Year (US10Y) has even widened by more than 100 basis points, marking the greatest disparity between the two instruments since late 1981.
What to watch: The Bank for International Settlements, popularly known as the central bank of central banks, has recently warned that the final stretch of monetary tightening is likely to be the toughest. “The easy gains have now been reaped and the last mile is going to be more difficult,” said Claudio Borio, head of BIS’ monetary and economic department. “I wouldn’t be surprised if there were more surprises.” So far, equities have shrugged off the notion of an entrenched inflation problem, with the benchmark S&P 500 Index (SP500) up by more than 13% YTD, though the vast majority of the gains have been led by a recovery in mega-cap tech stocks and the AI craze. Will the rally continue, broaden, or fizzle in the second half of 2023? (3 comments)
Staying connected
President Biden has announced details of a $42B federal investment in expanding Internet access for Americans, kicking off a new leg of a tour promoting the benefits of a 2021 bipartisan infrastructure package. “We’re going to be able to connect every person in America to reliable high-speed Internet by 2030,” he declared. The money will be released in stages and should provide additional incentives to big broadband providers like Comcast (CMCSA), Charter (CHTR), AT&T (T), Verizon (VZ), and T-Mobile (TMUS). All 50 states and some U.S. territories are due to receive funding, but one state clearly received more than the rest in terms of absolute dollars. (253 comments)
Disney vs. DeSantis
Florida Governor Ron DeSantis is seeking to dismiss Disney’s (DIS) lawsuit alleging targeted retaliation against the entertainment giant, arguing that he has “legislative immunity” and the company lacks standing to sue him. The suit accused DeSantis of launching a political effort against the company, which included a crackdown on its special taxing district, in response to Disney’s stance surrounding the state’s so-called “Don’t Say Gay” law. It may not matter to the business. SA analyst Craig Blanchfield believes the “woke” and other political narratives are overhyped, saying “it is reasonable to expect that any negative impact they may have will be temporary.” (6 comments)
Out of charge
Lordstown Motors (RIDE) has filed for Chapter 11 bankruptcy, sending the stock 52% lower before the opening bell. The EV maker also sued Taiwanese electronics firm Foxconn (OTCPK:FXCOF) for allegedly reneging on its commitments, and began a sale process for its Endurance truck and related assets. “I believe that Lordstown could be one of the first EV startups in the U.S. to go out of business,” SA analyst The Asian Investor predicted a month ago, while SA Quant gave the stock a “Strong Sell” rating since the beginning of March. More recent developments included a 1-for-15 reverse stock split and a going concern warning. (5 comments)
Today’s Economic Calendar
8:30 Durable Goods
9:00 S&P CoreLogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 New Home Sales
10:00 Richmond Fed Mfg. Index
1:00 PM Results of $43B, 5-Year Note Auction
1:00 PM Money Supply
What else is happening…
Survey results: Prepare portfolios for a deepening of the war in Ukraine.
Meta (META) launches VR subscription offering at $8 per month.
Apple (AAPL), Broadcom (AVGO) lose appeal over patent case.
Chinese premier: Economic growth on track to reach 5% target.
Blackstone (BX) weighs offers for half its stake in Bellagio casino.
Robinhood Markets (HOOD) lays off 7% of full-time workforce.
Oil drilling stocks rally as Barron’s says they could be gushers.
UnitedHealth (UNH) to buy Amedisys (AMED) in all-cash deal.
Lilly (LLY) presents data from mid-stage trial of weight loss drug.
Auto investors strap in ahead of big week of delivery reports.
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Good morning. Happy Monday.
The Asian/Pacific markets leaned down. South Korea and the Philippines did well, while China, Hong Kong, Taiwan, New Zealand and Thailand were weak. Europe, Africa and the Middle East are mixed, with few big movers. Poland and Turkey are up; Russia and Greece are down. Futures in the States point towards a flat open for the cash market.
————— Online Course: Jason Leavitt’s Masterclass in Trading —————
The dollar is down. Oil is up; copper is unchanged. Gold and silver are up. Bonds are up.
Stories/News from Seeking Alpha…
Russian roulette
Things are moving fast following a headline-provoking weekend in Russia, where an aborted mutiny by Yevgeny Prigozhin and the Wagner Group has shaken expectations about what might come next in the Kremlin’s war in Ukraine. An armored Wagner convoy was only 120 miles from Moscow when a revolt was called off, with the paramilitary group shooting down six Russian helicopters and a command-center plane after seizing the military logistics hub of Rostov-on-Don. Under terms of an agreement to end the crisis, Wagner’s 25,000 heavily armed troops won’t face prosecution, while Prigozhin will be exiled to Belarus, though his days there could be numbered after threatening to storm the Russian capital in a “March of Justice.”
Explainer: The bitter feud has been ongoing for months, with Prigozhin accusing the Kremlin of battlefield losses due to shortfalls in financing, weapons and even recruitment. Things took a turn for the worse on June 10, when Russia’s Ministry of Defense ordered all volunteer detachments to sign contracts with the government. Prigozhin refused as it would deprive him of his power base and took his chances on a revolt instead of being forced into insubordination. Putin has also historically promoted rivalries in the ranks to prevent succession challenges, but this one seems to have backfired and could leave the Russian strongman’s regime with some permanent damage.
“I don’t think we’ve seen the final act,” U.S. Secretary of State Antony Blinken declared. “We’ve seen more cracks emerge in the Russian facade. It is too soon to tell exactly where they go, and when they get there, but certainly, we have all sorts of new questions that Putin is going to have to address in the weeks and months ahead. Our focus is resolutely and relentlessly on Ukraine, making sure that it has what it needs to defend itself and to take back territory that Russia seized.”
Markets are looking at the situation as a non-event for now, but traders are on edge should things morph into something bigger – like a full-out coup, uprising or even a civil war. Energy is likely the biggest sector that would be impacted, with Russia being the world’s third-largest crude producer and a key supplier of natural gas to Western Europe. Even safe-haven gold barely caught a bid after the weekend’s events, but based on past disruptions, shocks could roil everything from stocks to currencies pretty quickly if trouble ensues.
Defense sector: NATO allies will be thinking of the latest developments when considering new military funding or the supply of Lockheed Martin-built (NYSE:LMT) F-16s, which would upgrade Ukraine’s firepower but could also escalate the situation with the ability to strike deep into Russia. The U.S. has already made several U-turns on supplying more advanced weapons, including heavy artillery, M1 Abrams tanks and the Patriot missile defense system. Things are taking on more importance as the Ukrainian military gets a long-planned counteroffensive underway and ahead of a NATO summit in Vilnius next month where Kyiv will press the alliance on stronger defense commitments. (21 comments)
Oil demand
The Organization of the Petroleum Exporting Countries has projected that global oil demand will increase to 110M bbl/day by 2045, with overall energy demand expected to rise by 23%. While the group acknowledges that renewable power will play a greater role in the world’s energy mix going forward, it stressed that “oil remains an integral part of the mix.” OPEC also raised concerns about the underinvestment in the oil industry, saying this could jeopardize existing energy systems’ viability and result in “energy chaos.” This contrasts with the IEA’s recent forecast of global oil demand growth tapering off in the next few years. (9 comments)
Pills for obesity
The investor craze for obesity treatments continues as Novo Nordisk (NVO) said high-dose oral versions of its diabetes medication semaglutide significantly reduced weight in late-stage trials. That could make them a more convenient alternative to expensive injections. Semaglutide is the active ingredient of popular weight loss treatments Wegovy, Rybelsus and Ozempic, with Novo ahead of the crowd in terms of weight loss drug trials. Rival Eli Lilly (LLY) is close behind, having recently completed a mid-stage trial for its weight loss pill orforglipron. (2 comments)
Merger Monday
IBM (IBM) has agreed to acquire software provider Apptio for $4.6B from Vista Equity Partners with available cash on hand. The deal will boost IBM’s IT automation capabilities and drive significant synergies across growth areas. Apptio was taken private by Vista Equity Partners in a $1.9B deal that faced several shareholder lawsuits at the time. IBM acquired eight companies in 2022, the last being Octo, and is exploring a sale of its weather business. (29 comments)
Today’s Economic Calendar
10:30 Dallas Fed Manufacturing Survey
1:00 PM Results of $42B, 2-Year Note Auction
What else is happening…
Coinbase (COIN): Over half of Fortune 100 firms betting on blockchain.
Spotlight on consumer stocks with student loan repayments in the mix.
Amazon (AMZN) eyes local businesses for last-mile delivery network.
Apple (AAPL) self-service repair now available for iPhone 14 line.
E-cigarette sales increased nearly 50% during 2020-2022 – CDC.
What is behind big pharma’s recent underperformance?
Oregon county sues Big Oil firms over role in 2021 heat dome.
Mountain Valley Pipeline wins final permit to resume construction.
LNG project approvals set to push U.S. to process record volumes.
With the first half of 2023 in the books, what opportunities lay ahead?
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