📈 Novo's Prices Questioned

Good morning.

⚡ The Fast Five → Consumer confidence crashes, CrowdStrike says sorry, SAP under scrutiny, Salesforce makes an acquisition, Big prices for weight loss questioned

And now…

⏱️ Your 5-minute briefing for Wednesday, September 25, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Trends

• S&P 500, Dow close at new highs as mining stocks rise on China stimulus boost

• US Futures Flat After Dow, S&P 500 Notch New Records

WHAT WE’RE WATCHING
Events

• Tomorrow: Final Gross Domestic Product, 8:30AM

• Why You Should Care: It's the broadest measure of economic activity and the primary gauge of the economy's health

Earnings Reports

• Today: Micron Technology, Cintas, Concentrix

• Tomorrow: Costco, Accenture, Jabil, CarMax, Scholastic

MARKET BRIEF
Leading News

Novo Nordisk CEO Ready to Talk Pricing on Game-Changing Weight Loss Drugs

Why it matters: This could be a turning point for access to revolutionary obesity treatments, potentially unlocking massive market potential.

The big picture: Danish pharma giant Novo Nordisk's CEO Lars Fruergaard Jorgensen is stepping into the ring with U.S. politicians over pricing for their blockbuster weight loss drugs. With Wegovy and Ozempic flying off the shelves, Novo's market cap has skyrocketed to $460 billion, surpassing most European blue-chips.

• Jorgensen's open to dialogue signals a potential shake-up in the $100 billion obesity market.

• This move comes as demand outstrips supply, with Novo and rival Eli Lilly (LLY) racing to boost production.

Go deeper:

• Political heat: U.S. lawmakers are pressuring for lower prices, echoing broader healthcare cost concerns.

• Market implications: Any pricing changes could ripple through the entire biotech sector (XBI).

• Tech angle: AI and machine learning are accelerating drug discovery, potentially leading to even more groundbreaking treatments.

What they're saying: "We are always open to discuss how we can get better access for patients to our medicines," Jorgensen told Reuters, striking a collaborative tone.

The bottom line: This pricing dialogue could be a catalyst for Novo Nordisk's next leg up. Keep your eyes peeled for potential dips as buying opportunities in this red-hot sector.

Consumer Confidence Nosedives

Why it matters: This sentiment shift could spark market volatility, but savvy investors might smell opportunity in the chaos.

The big picture: Consumer confidence just took its biggest hit in 3 years, plunging to 106.7 from 110.9. The Conference Board's index is flashing warning signs as Americans get jittery about their financial futures.

But here's the kicker: This bearish sentiment might be setting us up for a classic contrarian play.

Go deeper:

• Job market jitters: Workers are sweating bullets over future job prospects. Could this spark a self-fulfilling prophecy in the labor market?

• Inflationary fears: Consumers expect prices to keep climbing. Time to revisit your inflation hedges? (Looking at you, $GLD and $TIP) 👀

• Spending slowdown: Plans for big-ticket purchases are cooling off. Watch for ripple effects in retail and consumer discretionary sectors ($XLY).

What they're saying: "Expectations for the next six months weakened, reflecting ongoing concerns about the state of the U.S. economy," - Dana Peterson, Chief Economist at The Conference Board.

The bottom line: This dip in confidence could spell buying opportunities for the bold. Keep dry powder ready and watch for oversold sectors – the real money is made when others are fearful.

Headlines

• SAP stock falls on report of U.S. probe (link)

• CrowdStrike boss apologizes for global IT outage (link)

• Salesforce snatches up Zoomin, a tool for organizing company knowledge (link)

• FBI raids HQ of US govt IT giant Carahsoft (link)

• Vista, Blackstone buying software maker Smartsheet for about $8.4 billion (link)

• Longshoremen from Maine to Texas appear likely to go on strike (link)

• Coca-Cola discontinues Spiced flavor after just 6 months (link)

CRYPTO
Fear & Greed

Headlines

• Caroline Ellison sentenced to two years in prison over FTX collapse (link)

• SEC postpones decision on BlackRock and Bitwise spot Ethereum ETF options (link)

• Gensler says DEBT Box case ‘not well handled’ by SEC (link)

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