NVO Downgrade Sell-Off, Defense Rally, CCL Cruises on Earnings

Carnival Cruise Line - Carnival reported adjusted earnings per share (EPS) of $1.43, exceeding the expected $1.32, with revenue surpassing $8 billion at $8.2 billion, marking a record quarter for the company [2][3] - This marks the 10th consecutive quarter of record numbers for Carnival, indicating strong consumer spending on cruise experiences [3] - Bookings for Carnival are robust, with 2026 already about 50% booked, leading to a raised full-year profit forecast for the third time this year [4] - The company expects profits to increase by more than 50% year-over-year, with fourth-quarter profits anticipated to rise over 60% [5][6] - Carnival is also focusing on debt reduction and has improved fuel efficiency by 5%, which enhances margins and supports sustainability efforts [6][7] - The cruise industry, particularly Carnival, has shown significant stock performance, with Carnival up over 70% in the past year [8] Novo Nordisk - Novo Nordisk faced a downgrade from Morgan Stanley, moving from equal weight to underweight, with a price target cut to $47 [9][10] - The downgrade is attributed to expected downside revisions for 2026 and 2027 consensus estimates, particularly concerning the drug simaglatide [11] - Concerns arise from the anticipated failure of trials for simaglatide in treating Alzheimer's, with a 75% chance of failure expected [12] - Prescription trends for Ozempic have been declining, while rival Eli Lilly is gaining market share, raising concerns about Novo's momentum [13] Defense Stocks - The Pentagon is urging missile suppliers to significantly increase production of key munitions, driven by potential future conflicts with China [15] - This initiative is part of a broader effort to enhance US stockpiles, leading to increased interest in defense stocks such as Lockheed Martin and General Dynamics [15][16]