The Most Important Charts In The Market… And Viking’s Weight Loss Surge 10/24/24
Oct 24, 2024
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Brandon Oglensky, a senior equity research analyst at Barclays known for analyzing UPS, joins Jared Holes, Mizuho's health care equity strategist focusing on Viking Therapeutics, and Alex Sherman, a CNBC sports reporter. They discuss the current market's crucial charts as the Dow faces its fourth straight loss. A highlight is Viking's surge, driven by its promising obesity drug VX2735. The traders also explore the dynamics between delivery services like UPS and key industry trends, making for an insightful market analysis.
Investors should monitor critical market charts, particularly focusing on interest rates, semiconductors, and transportation stocks amid today's fluctuating market landscape.
Viking Therapeutics' surge is attributed to its promising obesity drug formulation, positioning it as a strong contender against major players in the industry.
The recent earnings report from UPS has sparked debates on its long-term profitability amid competitive pressures, especially from industry giants like Amazon.
Deep dives
Tesla's Market Resurgence
Tesla shares surged by over 20% after the company reported its first earnings beat in five quarters. Elon Musk's bullish growth forecasts for the next few years contributed significantly to this resurgence, predicting a 20-30% growth in vehicle deliveries for 2025. This performance marks Tesla's best day in over a decade, possibly indicating a turnaround for the company after a troubling period. Analysts are now left weighing whether this momentum is sustainable or if the stock will return to its previous volatility.
Tapestry and Capri Merger Blocked
The proposed merger between Tapestry, the owner of Coach, and Capri Holdings, the parent company of Michael Kors, was blocked by a U.S. judge, causing Capri's stock to plummet by nearly 50%. This decision was framed by the FTC as a victory for consumers, as they believe the merger would result in higher prices and reduced competition in the handbag market. The ruling also prompted Tapestry to state their intention to appeal the decision, though time is running short for a successful resolution. As Capri strives to rebuild its brand amid declining sales, it now faces significant operational challenges.
UPS Breaks Revenue Rut
UPS shares rose significantly after the company reported a positive earnings report, marking an increase in delivery volumes for the first time in seven quarters. Analysts had previously expressed skepticism about UPS's long-term profitability due to the competitive pressure from Amazon and recent contract costs associated with their unionized workforce. Despite Barclays downgrading the stock to underweight prior to earnings, this performance has raised questions about whether UPS can maintain profitability moving forward. The results prompted discussions about the potential for UPS to recover its standing among competitors in the face of these challenges.
Viking Therapeutics' Breakthrough
Viking Therapeutics experienced a substantial increase in share price due to positive news surrounding a quadruple combo formulation of its obesity medication. This development, which could enhance the drug's efficacy, puts Viking in a competitive position against established players like Eli Lilly and Novo Nordisk. Upcoming presentations at an obesity conference are anticipated to reveal more data, further driving interest in the company's capabilities. Investors are particularly focused on how this drug can differentiate itself in a crowded market.
Market Conditions Impacting Dow and S&P
Recent market conditions have seen the Dow drop for a fourth consecutive day, largely influenced by underwhelming earnings from IBM and Honeywell. In contrast, the S&P and Nasdaq have managed slight gains as they rebounded amid ongoing earnings reports. Discussions around the transportation sector indicate that investor sentiment may hinge on specific market indicators reflecting broader economic health. With conflicting signals from various stocks, market participants are assessing which trends will prevail in the upcoming weeks.
The traders lay out the most important charts in the market right now, as the Dow notches its fourth straight day of losses. Why you need to keep an eye on rates, semis, transports, and more. Plus A biotech boom… as Viking Therapeutics surges as it inches closer to a weight loss drug pill. The cash they have on hand, and why investors believe it can help tip the scales in the obesity drug race.
