Boeing - Boeing expects to return to positive annual free cash flow in 2026, projecting low single-digit billions after a $2 billion cash burn in 2025, marking a significant recovery milestone [1][2] - The CFO highlighted a steadier production cadence, particularly for the 737 Max and 787 Dreamliner, while working down the inventory of undelivered jets that has impacted cash flow [3] - The certification for the 777X is now targeted for 2027, which is over seven years late, and Boeing incurred a $4.9 billion charge due to slower flight testing [4] - Analysts expect Boeing to generate $2.46 billion in free cash flow next year, an improvement from the current year's outflow, although cash flow expectations have been cut due to 777X delays [5] Memory Stocks - Western Digital's price target has been raised to $200 from $180, driven by a strong supply-demand backdrop and sustained pricing momentum, particularly supported by cloud enterprise and AI workloads [7][8] - Seagate's price target has also been increased to $320 from $275, maintaining a buy rating, reflecting similar bullish sentiment as with Western Digital [8] Eli Lilly - Bank of America has reiterated a buy rating on Eli Lilly, raising the price target to $286 from $950, indicating over 20% upside potential [9][10] - Eli Lilly is viewed as a leader in GLP-1 drugs for obesity and diabetes, with a strong pipeline expected to drive significant growth [10][11] - The anticipated launch of an oral GLP-1 drug in early 2026 is seen as a major bullish catalyst, with FDA advancements through phase three trials [11][12]

Market Overview & Strategy - The market has largely priced in positive news, suggesting limited further upside and increased downside risk if earnings disappoint [1][7] - Strategy Asset Managers favors international markets due to the depreciating dollar, creating advantages for certain stocks [2] - A weak dollar is generally beneficial for US net exporters and should aid international stocks through translation effects [6][8] - The firm advises clients to look beyond short-term market noise and maintain a confident long-term outlook [5] Investment Opportunities - Marcato Libre, an e-commerce and fintech company with exposure to Argentina, is favored due to growth potential in Latin America, which is considered greater than in Europe [3] - The healthcare sector, particularly biotechnology and pharmaceuticals, is highlighted as a key area of focus [13] - Eli Lilly (Lily) is favored for its potential in the GLP-1 drug market, targeting the billion people globally who are obese [13] - Next-generation vaccines and personalized cancer vaccines represent exciting advancements in biotechnology [14] Monetary Policy & Economic Factors - The market anticipates the Federal Reserve to implement rate cuts, potentially starting towards the end of the year [10] - The high US deficit necessitates eventual rate cuts, although the timing remains uncertain [10][11]