Welcome to Market Catalyst. I'm Julie Hyman. We are 30 minutes into the US trading day.So, let's get to three market catalysts we are watching this hour. First up, the shift to non US equities. Why one guest says emerging markets are likely to lead earnings growth next year.Plus, the Federal Reserve's Beth Hammock pushing to hold rates steady into the spring. why she's more concerned with inflation than the labor market and the outlook for biotech in 2026. We'll take a look at top picks in that sector.First ...

Competitive Landscape & Company Performance - Eli Lilly is outperforming Novo Nordisk due to superior execution and internal issues at Novo [2][3][5] - The market anticipates Alzheimer's data, but Lilly consistently beats expectations while Novo misses and cuts guidance [2] - Novo Nordisk's failed acquisition bid for Met Sarah indicates potential loss of momentum [3] - The analyst questions whether Novo Nordisk can recover to become an equal player in the GLP-1 duopoly [3] Valuation & Investment Strategies - The valuation gap between Eli Lilly and Novo Nordisk may be justified, but Novo Nordisk could become a value trap [4][5] - For value investing in healthcare, the analyst suggests considering Pfizer or Merck instead of Eli Lilly [4][5] - The analyst is not comfortable with Novo's trajectory and believes Lilly will continue to outperform in the coming years [5] Alternative Investment Opportunities - The analyst's top picks outside of GLP-1s include Disc Medicine (rare hematology play) and Gilead Sciences [6] - Gilead Sciences is a leader in HIV treatment and has a promising long-acting PrEP business and cell therapy [7]

Now for more on that healthc care space, let's bring in Evan Seager, the head of healthcare research over at Beimo Capital Markets. Evan, thank you very much for being here with us. Take us through the dynamic.I mean, GLP1s have been the focus for such a long time now. Is there anything that gets this competitive dynamic between Lily and Novo to close the gap a bit in the coming months and quarters. >> Well, first off, thank you for having me.And I think just today there's a lot of anticipation into this Al ...

Healthcare Sector Insights - The healthcare sector is viewed as an attractive trade, particularly in small and mid-cap companies, due to their earnings stability and resilience [1][8] - Companies like West Pharmaceutical and Merit Medical are highlighted for their diversified business models, which reduce dependency on single products and mitigate pharma risks [2][3] - Mid-cap healthcare firms are considered to have more attractive valuations and longer growth runways, often targeting niche markets that face less competition [4][5] Regulatory and Market Environment - Small and mid-cap healthcare companies are perceived to have lower regulatory and pricing risks compared to larger firms, as their pricing negotiations typically occur with hospitals rather than through broader market pressures [7][8] - The regulatory landscape, particularly under different political administrations, could impact how these companies navigate their business strategies [6] Market Trends and Investor Sentiment - Recent pullbacks in tech and AI sectors have raised concerns among investors about potential market trends, with some questioning if a medium to long-term top has been reached [9][10] - The shift from cash flow funding to debt financing for tech investments has spooked investors, highlighting the need for sustainable economic models [11][12]