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]

Meanwhile, take a look at shares of Novo today falling to a four-year low this morning after results from its highly anticipated Alzheimer's drug trial failed to meet its main goal. The trial showed Novo's weight loss drug MGovi did not slow the progression of Alzheimer's. Joining us with some reaction today, city's head of US Pharma and biotech research Jeff Meum is with us.Jeff, thanks for the time. Good to see you again. >> Yeah, you too, Carl.Thank you for having me. >> I've seen the phrase longshot ass ...

Market Overview - The US stock market is experiencing volatility, with the Dow up about 0.5%, S&P 500 up 0.4%, and Nasdaq up 0.3% during the trading session [2] - Comments from John Williams, the governor of the Federal Reserve Bank of New York, suggesting openness to a rate cut in December have influenced market movements [3][5] - The NASDAQ composite is down over 3% for the week, indicating ongoing market challenges [3] Cryptocurrency Market - Bitcoin has seen significant losses, breaking below $85,000, with a slight bounce off recent lows [7] - The cryptocurrency market is under pressure, reflecting broader market sentiment and risk appetite [50] Retail Sector Performance - Gap Inc. reported a strong third quarter, raising its full-year forecast after comparable sales increased by 5% year-over-year [9][11] - Old Navy, Gap, and Banana Republic all showed positive sales growth, with Old Navy up 6% and Gap up 7% [12] - The retailer's strategy, including a successful denim campaign, has contributed to its positive performance [12][15] Consumer Sentiment - The University of Michigan's November consumer sentiment index came in at 51, slightly above the estimate of 50.6, indicating a modest improvement in consumer outlook [7] Technical Market Analysis - The S&P 500 has closed below key technical levels, raising concerns about potential further losses [32][33] - The 50-day moving average has been a focal point, with a breakdown suggesting reduced structural support for the market [34] - The VIX index has spiked, indicating increased market volatility and potential fear among investors [37][40] Company-Specific Insights - Intuit reported stronger-than-expected results for its fiscal first quarter, with an 18% growth in its business platform and a 21% growth in its consumer platform [84][86] - The company has signed a $100 million partnership with OpenAI, aiming to enhance its service offerings through AI integration [85][96] - Intuit's revenue breakdown shows 60% from small and mid-size businesses, 30% from tax services, and 10% from Credit Karma [88]

Core Insights - Eli Lilly's stock surged nearly 4% following a strong earnings report driven by high demand for its GLP-1 drugs, Mounjaro and Zepbound, with significant revenue growth expected [1][2] - Novo Nordisk's stock declined by 2.5% after it confirmed an unsolicited bid to acquire Metera, which is reportedly better than Pfizer's previous offer [1][2] - Pfizer is contemplating a lawsuit against Novo Nordisk and Metera regarding the acquisition bid [2] Eli Lilly - Eli Lilly reported a strong quarter, with international sales contributing positively to its performance, particularly for Mounjaro [2][3] - The company raised its guidance by $2 billion, indicating confidence in its future performance [4] Novo Nordisk - Novo Nordisk's unsolicited bid for Metera is seen as out of character and possibly desperate, reflecting the company's need to turn its business around [4][7] - The competitive landscape is complicated, with multiple bidders for Metera and legal complexities surrounding the acquisition [6][7] Pfizer - Pfizer's previous bid for Metera faced competition from Novo Nordisk, and the situation has created confusion in the market [6] - The company is perceived to have missed opportunities in the current pharmaceutical landscape, leading to a sense of urgency in its strategic moves [4][7] Market Dynamics - The pharmaceutical industry is experiencing significant changes, with drug pricing becoming a focal point for political discussions, particularly concerning GLP-1 drugs [9][10] - The prices of these drugs have decreased by approximately 50% over the past year, impacting revenue dynamics for companies like Eli Lilly [10] Future Considerations - There is speculation about a rush to finalize the Metera deal before key readouts in December and January, which could influence stock prices [8] - Other companies in the market, such as Viking, are still considered potential players, although they face challenges related to manufacturing and investment [11][12]

Starbucks - Starbucks reported a mixed earnings report, with shares down 2% in pre-market trading despite achieving its first same-store sales gain in nearly two years, up 1% globally, driven by new protein drinks and improved morning staffing [2][3] - U.S. sales remained flat, while international sales increased by 3%, reflecting a 2% increase in China [2] - Revenue reached $9.57 billion, surpassing expectations of $9.33 billion, but adjusted EPS fell short at 52 cents compared to the expected 55 cents [3] - The CEO described the results as a turning point in Starbucks' multi-year turnaround, but the lack of a full outlook raised concerns among investors, with guidance expected in January [3][4] Eli Lilly - Eli Lilly experienced strong performance driven by its weight loss and diabetes drugs, with adjusted EPS at $7.02, beating expectations of $6.02 [4] - Revenue was reported at $17.6 billion, exceeding the anticipated figure of over $16 billion, and the company raised its full-year guidance to between $63 billion and $63.5 billion, up from a previous forecast of $60 to $62 billion [5][6] - Mjaro revenue more than doubled to over $6.5 billion, while Zetbound revenue almost tripled to over $3.12 billion, indicating strong demand for GLP-1 drugs [5][6] - Eli Lilly is also developing a new weight loss pill, which could potentially be a game changer in the market [7] Estee Lauder - Estee Lauder reported a return to profitability, beating expectations on both revenue and adjusted EPS, with revenue at $3.4 billion and adjusted EPS at 32 cents [8][10] - The company reaffirmed its full-year sales outlook and emphasized that fiscal year 2026 will be pivotal for restoring growth and expanding margins after four years of compression [9][10] - Growth was driven by skincare, which increased by 3%, and fragrance, which saw a significant rise of 14%, while makeup and hair care experienced declines of 1% and 7%, respectively [10][11] - Estee Lauder regained market share in China and the broader Asia-Pacific region, indicating a recovery in those markets [11]

Core Viewpoint - The UK has been declining as a leader in biopharmaceuticals due to policy mistakes, making it unattractive for investment, which should serve as a warning to US policymakers [2][5]. Investment Environment - The UK market has become increasingly unattractive for investment over the years, despite having a strong academic and scientific base [3][5]. - The company has paused investments in the UK, awaiting policy changes from the new administration [4][5]. Policy Issues - The UK pricing system for new medicines is outdated, pegged to a value from 1997, which has not adjusted for healthcare inflation of 4-5% per year, effectively debasing the value of new medicines [6][7][8]. - The UK spends half per capita on medicine compared to the US on a GDP-adjusted basis, indicating a need for policy reform to improve investment attractiveness [8]. - A tax imposed on the pharmaceutical industry for budget overruns in healthcare, which was 23% of sales last year, is seen as detrimental to attracting investment [9][10]. Global Competition - The US is a leader in the invention of new medicines, with 70% of global new medicines developed there, highlighting the importance of maintaining overseas markets for these products [14][15]. - The current pricing policies in Europe, including the UK, hinder the ability to raise prices and attract investment, which is essential for the sustainability of the industry [11][15]. Market Dynamics - The reimbursement process for new medicines in the UK is slow, often taking years, which contrasts with the immediate availability of new products in the US [18][19]. - The company believes that if the UK were to reimburse certain medicines, such as Mjaro for obesity, it could significantly impact health costs in the country [17].