Carl, thank you. Uh, joining us now exclusively here at the Active Passive Summit is one of Wall Street's most influential activists. Starboard Values CEO Jeff Smith just unveiled his latest investment ideas here at the conference as well.And uh, we'll talk about all of those. Let's uh, well, first of all, thanks. It's our annual tradition.I appreciate you keeping it up. >> Yeah, thank you, David. It's nice to be here.>> You seem thrilled. >> Thrilled. >> Love being here.>> You talked about three different ...

Core Viewpoint - Kenvue has requested U.S. regulators to deny a petition that seeks to issue a warning regarding the potential autism risk associated with its over-the-counter pain medication Tylenol when used during pregnancy [1] Group 1 - Kenvue is advocating against the warning request, emphasizing the safety profile of Tylenol [1] - The petition for the warning suggests concerns about the medication's use during pregnancy and its potential link to autism [1]

Company Overview - Kenvue is a consumer health products company that emerged from Johnson & Johnson's former consumer healthcare business, officially becoming a stand-alone public company in 2023 [4] - The company owns a portfolio of well-known brands including Tylenol, Band-Aid, Aveeno, Neutrogena, and Listerine, focusing on self-care, skin health, beauty, and essential health [5] - Kenvue reported nearly $15.5 billion in sales and over $1 billion in profit last year, indicating its significant market presence [5] Current Challenges - Kenvue's shares have declined more than 20% this year, primarily due to concerns linking Tylenol to autism, which has negatively impacted investor sentiment [2] - The company is currently facing various challenges but has a new leadership team in place to help navigate these issues [8] Future Potential - Despite current struggles, Kenvue is expected to recover, with potential catalysts for growth identified for 2026 [3] - The company has been consistently innovating, launching over 100 new product innovations annually since 2020, which could enhance its market position [6] - Johnson & Johnson anticipated that Kenvue would achieve improved profit margins and growth as an independent entity, with more flexibility for acquisitions [7]

Core Insights - American Express shares increased after the company reported strong quarterly results that exceeded analysts' expectations and raised its outlook due to increased customer usage of its high-end credit cards [2][6]. Group 1: Market Performance - Major U.S. equity indexes rose at midday on Friday, with regional bank stocks recovering from previous losses following a series of corporate earnings reports [1][6]. - Kenvue was the top performer in the S&P 500 as investors capitalized on a dip in its stock price after a lawsuit in the U.K. claimed its baby powder caused cancer [2]. - Truist Financial also reported better-than-expected results, driven by higher wealth management fees and interest income, leading to a rise in its share price [3]. Group 2: Sector Movements - Shares of Newmont and other gold miners declined as the price of gold, which had been reaching record highs, experienced a pullback [3]. - U.S.-listed shares of Novo Nordisk and Eli Lilly fell after comments from President Trump regarding potential price reductions for popular weight-loss drugs [3][6]. Group 3: Economic Indicators - The yield on the 10-year Treasury note and oil futures saw slight increases, while the U.S. dollar strengthened against the euro and pound but weakened against the yen [4].

Group 1 - Major U.S. equities indexes, including the Dow, S&P 500, and Nasdaq, experienced gains as regional bank stocks rebounded following a series of corporate earnings reports [2][5] - American Express shares rose after the company reported quarterly results that exceeded analysts' expectations and improved its outlook due to increased customer usage of its high-end credit cards [3][5] - Truist Financial also reported better-than-expected results driven by higher wealth management fees and interest income, resulting in a rise in its share price [3] Group 2 - Shares of Newmont and other gold miners declined as the price of gold, which had been reaching record highs, experienced a pullback [4] - U.S.-listed shares of Novo Nordisk and Eli Lilly fell after comments from President Trump indicated intentions to reduce prices for popular weight-loss drugs [4][5]

Core Insights - U.S. stocks experienced a mostly positive session, with the Dow Jones index increasing by over 150 points on Friday [1] Company Highlights - Revolution Medicines Inc (NASDAQ:RVMD) saw a significant share price increase of 11.2%, reaching $55.25, after the FDA granted a non-transferrable voucher for its drug daraxonrasib under the National Priority Voucher pilot program [1] - Disc Medicine Inc (NASDAQ:IRON) shares surged by 25.7% to $93.50 following the receipt of a Commissioner's National Priority Voucher from the FDA for bitopertin [4] - Liberty Energy Inc (NYSE:LBRT) reported a 23.4% increase in share price to $14.73 after announcing third-quarter results [4] - Solana Co (NASDAQ:HSDT) shares rose by 19.5% to $12.08 [4] - Sealsq Corp (NASDAQ:LAES) experienced a 14.4% increase, reaching $7.28 [4] - Rekor Systems Inc (NASDAQ:REKR) shares gained 13.3% to $2.94 [4] - Praxis Precision Medicines Inc (NASDAQ:PRAX) saw a 12.5% increase to $183.00 after announcing a $525 million public offering [4] - Sify Technologies Ltd (NYSE:SIFY) shares rose by 11.8% to $13.15 [4] - Kenvue Inc (NYSE:KVUE) increased by 8.4% to $15.30 [4] - Propetro Holding Corp (NYSE:PUMP) surged by 7.6% to $5.52 [4] - Owens & Minor Inc (NYSE:OMI) shares gained 6.7% to $4.90 [4] - American Express Co (NYSE:AXP) reported a 6% increase in share price to $342.57, surpassing analyst estimates for revenue and adjusted earnings per share [4] - AppFolio Inc (NASDAQ:APPF) shares increased by 4.7% to $233.90, with an upgrade from Keybanc analyst Jason Celino from Sector Weight to Overweight and a new price target of $285 [4]

Core Insights - Kenvue Inc. (NYSE:KVUE) is identified as a high volume stock with potential investment interest according to Wall Street analysts [1][2] - Recent price target adjustments by major financial institutions reflect a cautious outlook for Kenvue and the broader consumer health sector [1][2] Company Overview - Kenvue operates as a consumer health company with a global presence, including regions such as the US, Europe, the Middle East, Africa, Asia-Pacific, and Latin America [3] - The company is structured into three segments: Self Care, Skin Health and Beauty, and Essential Health [3] Market Sentiment - JPMorgan has lowered Kenvue's price target to $21 from $24 while maintaining an Overweight rating, citing expected weak performance in the household and personal care group due to depressed consumer demand [1] - Citi has also reduced its price target for Kenvue to $17 from $20, keeping a Neutral rating, reflecting similar concerns about the challenging market conditions in the beverage and personal care sectors [2]

Group 1 - Kenvue experienced a significant sell-off of over 13% due to potential legal issues, contrasting with a smaller 0.6% decrease in the S&P 500 [1] - The company, previously part of Johnson & Johnson, is facing a lawsuit related to its Johnson's Baby Powder, which has been linked to cancer allegations [2][3] - The lawsuit in the U.K. involves approximately 3,000 claimants and targets both Kenvue and Johnson & Johnson [3] Group 2 - Kenvue's response to the lawsuit indicates that it does not believe the claims regarding the talc-based powder causing cancer will be upheld in court [4] - The company has inherited a long-standing legal controversy from its parent company, which includes the contentious product Johnson's Baby Powder [6]

Core Viewpoint - Johnson & Johnson (JNJ) is facing its first lawsuit in the UK regarding its talc products, which are alleged to cause cancer, while the company is already dealing with thousands of similar claims in the US [1][2] Group 1: Lawsuit Details - The lawsuit was filed in the High Court of England, naming Johnson & Johnson and its subsidiary Kenvue UK Limited as defendants [1] - Over 3,000 plaintiffs claim that using Johnson's baby powder from 1965 to 2023 led to ovarian cancer, mesothelioma, or other diseases [1] - KP Law asserts that Johnson's talc products contain carcinogenic fibers, including asbestos, which is linked to deadly mesothelioma [1] Group 2: Company Response and Legal Strategy - Johnson & Johnson has transferred inquiries to Kenvue and maintains that it has reserved liability for talc-related lawsuits outside the US and Canada [1] - Kenvue states that Johnson's baby powder "does not contain asbestos and is not carcinogenic" [1] - Johnson & Johnson stopped selling talc-based baby powder in the US in 2020 and switched to corn starch products, a similar move was made in the UK in 2023 [2] Group 3: Financial Implications - The estimated value of the UK lawsuit is around £1 billion (approximately $1.34 billion) [2] - A recent ruling in the US required Johnson & Johnson to pay $966 million to the family of a woman who died from mesothelioma, marking one of the largest penalties faced by the company [2] - Unlike the US, where punitive damages can be substantial, UK courts typically limit damages to compensatory amounts unless intentional harm is proven [2]

Group 1 - Kenvue is the largest pure-play consumer health company globally, spun off from Johnson & Johnson in 2023, inheriting a strong product lineup [2] - Kenvue has a notable history as a Dividend King, with 63 consecutive annual dividend increases and a forward dividend yield exceeding 5.1% [3] - Despite its dividend strength, Kenvue's stock performance has been poor, with weak revenue growth and a significant decline in profits since becoming a standalone entity [3] Group 2 - Kenvue experienced a leadership change in July, appointing Kirk Perry as interim CEO following the departure of Thibaut Mongon [4] - The company faced a public relations crisis due to claims linking Tylenol use during pregnancy to autism, which Kenvue and several healthcare organizations quickly refuted [5] - Analysts from Bank of America and JPMorgan Chase suggest that Kenvue's stock may have upside potential of approximately 29%, with a total return exceeding 34% over the next 12 months if dividends are maintained [6]