My top 10 things to watch Tuesday, Nov. 26 1. The outgoing Biden administration proposed a rule that would expand access to obesity drugs for millions of Americans enrolled in Medicare and Medicaid. If implemented, that would be great news for Eli Lilly , a longtime Club name we bought more of on Monday. Shares of Lilly and chief rival Novo Nordisk were higher on the news. 2. Amgen shares tumbled more than 11% after its weight-loss treatment helped patients lose up to 20% of their body weight on average over 12 months. Investors had high hopes for the drug, known as MariTide. It may not be as effective as Lilly’s and incidences of sickness look worse than Lilly’s. 3. President-elect Donald Trump pledged to impose a 25% tariff on imports from Mexico and Canada, along with an additional 10% levy on goods from China, upon taking office in January. Notable that Trump’s threats on Mexico and Canada are bigger than China, although there are higher tariffs on Chinese goods left over from his first term. Are we going soft on China? Could be negotiating. 4. Kohl’s CEO Tom Kingsbury is leaving in January. Michaels CEO Ashley Buchanan is replacing him. Kohl’s doesn’t know what to do with itself. Meanwhile, The Wall Street Journal published a devastating piece on Target and how the retailer lost out — expensive groceries and locked-up items, like at drugstore chains, were cited. 5. FedEx spinning off its freight business would unlock a huge amount of money for shareholders. Barclays estimated between $10 billion to $20 billion in incremental value. Analysts kept an overweight buy rating and price target of $365 a share. FedEx has said it will finish an assessment of its freight business by year-end. 6. Pandemic darling Zoom reported a better-than-expected quarter alongside current quarter guidance that was essentially in line. Still, shares were down almost 10%. The stock had been creeping up ahead of the quarter, up almost 23% over the past month through Monday. 7. HSBC downgraded Goldman Sachs and Club name Morgan Stanley to hold ratings, arguing their recent big rallies has diminished the risk-reward outlook. Separately, a negative report in the WSJ raised concerns about Morgan Stanley’s anti-money laundering controls. I am not so sure it is reflective of the current state of Morgan Stanley. 8. Citigroup upped its price target on Club name Coterra Energy to $32 a share from $28, betting that recent efficiency trends can continue. Even with its decline Monday, Coterra has been one of our top-performing stocks since Election Day. Citi also upgraded Chevron to a buy. 9. Stifel raised its price target on Marriott to $283 a share from $252, which is below where the stock closed Monday’s session. Analysts have a hold rating on the hotel operator. Although Marriott had a light quarter earlier this month, like American Express , it can’t be stopped because travel can’t be stopped. 10. JM Smucker did what it said it could do, reporting 17% net sales growth that was aided by the Hostess acquisition. That is looking good for them. Earnings topped estimates in the quarter, along with a nice full-year forecast boost. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at 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.
An Eli Lilly & Co. Zepbound injection pen, March 28, 2024.
Bloomberg | Bloomberg | Getty Images
My top 10 things to watch Tuesday, Nov. 26
1. The outgoing Biden administration proposed a rule that would expand access to obesity drugs for millions of Americans enrolled in Medicare and Medicaid. If implemented, that would be great news for Eli Lilly, a longtime Club name we bought more of on Monday. Shares of Lilly and chief rival Novo Nordisk were higher on the news.
2. Amgen shares tumbled more than 11% after its weight-loss treatment helped patients lose up to 20% of their body weight on average over 12 months. Investors had high hopes for the drug, known as MariTide. It may not be as effective as Lilly’s and incidences of sickness look worse than Lilly’s.
3. President-elect Donald Trump pledged to impose a 25% tariff on imports from Mexico and Canada, along with an additional 10% levy on goods from China, upon taking office in January. Notable that Trump’s threats on Mexico and Canada are bigger than China, although there are higher tariffs on Chinese goods left over from his first term. Are we going soft on China? Could be negotiating.
