📈 Novo's Weight-Loss Drug War

Good morning.

⚡ The Fast Five → Nvidia-backed CoreWeave acquires AI developer platform, Tariffs weigh on E-Comm stocks, MongoDB shares sink, Abercrombie stock plunges, Novo Nordisk goes direct to consumer with Wegovy

🔎 Market Trends → Wall Street ends higher as markets eye easing of trade tensions; US Futures Hold Steady on Tariff Concessions

And now…

⏱️ Your 5-minute briefing for Thursday, March 6, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Rally as Automakers Get Tariff Relief

The Nasdaq gained 1.5% to 18,552.7, while the Dow and S&P 500 each rose 1.1%, closing at 43,006.6 and 5,842.6, respectively. Materials led the gains, while energy and utilities lagged.

The Big Picture:

Markets cheered after President Trump granted a one-month tariff exemption for automakers, softening the impact of his recently implemented 25% tariffs on Mexico and Canada. The White House signaled that further relief could be on the table, keeping investors hopeful.

While the Fed’s latest Beige Book described "slightly" improving economic activity, trade policy uncertainty continues to weigh on sentiment. US services data sent mixed signals, with ISM showing strength while S&P Global (SPGI) flagged a slowdown.

Bond yields climbed as traders adjusted expectations. The 10-year Treasury yield rose 7 basis points to 4.28%, while the 2-year yield added 5.2 basis points to 4.007%. Oil slipped 2.7% to $66.40 per barrel, pressured by global demand concerns.

Market Movers:

• Brown-Forman (BF.A) surged 10%, leading the S&P 500, after strong Q3 earnings, despite a revenue decline. The wine and spirits maker reiterated its full-year guidance, reassuring investors.

• CrowdStrike (CRWD) tumbled 6.3%, the S&P 500’s worst performer, as its earnings outlook fell short of market expectations.

• Abercrombie & Fitch (ANF) plunged 9.2%, after forecasting a slowdown in sales growth for 2025 and a weak Q1 earnings outlook.

What They’re Saying:

"While tariff uncertainty remains, markets are responding to signals that exemptions could expand—reducing supply chain disruptions and supporting corporate outlooks," said Stifel analysts in a note.

WHAT WE’RE WATCHING
Events

• Today: Department of Labor - Unemployment Claims - 8:30am

• Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

Earnings Reports

• Today: Costco, Kroger, Macy’s, BJ’s Wholesale Club, Gap, Burlington Stores, National Beverage Corp., Broadcom, Hewlett Packard Enterprise

• Tomorrow: Genesco, Algonquin Power & Utilities, WeRide, Galiano Gold

MARKET BRIEF
Leading News

Weight-Loss Drug Wars: Novo Nordisk's 63% Price Slash Reshapes Competitive Landscape

Why it matters:

Novo Nordisk's aggressive pricing strategy signals a fundamental shift in the $47.4B weight-loss drug market, creating both winners and losers as competition intensifies.

Zoom Out:

Novo Nordisk (NVO) dropped a market-moving bombshell Wednesday, slashing Wegovy's price to $499 monthly from $1,349 through its new direct-to-consumer NovoCare Pharmacy. This 63% discount aims squarely at disrupting compounders like Hims & Hers Health (HIMS).

The timing is no accident. With the FDA recently declaring semaglutide (Wegovy's active ingredient) no longer in shortage, compounders like Hims must soon cease selling competing formulations at identical dosages.

Key Insights:

• Market battlefield expands: Novo follows Eli Lilly's (LLY) playbook with direct-to-consumer sales, bypassing traditional distribution channels in a sector projected to grow nearly tenfold to $471.1B by 2032.

• Competitive moat-building: By emphasizing "authentic, FDA-approved" medication, Novo tactically positions against what it calls "fake or illegitimate" compounded alternatives while securing its supply chain advantage.

• The long game matters: While HIMS stock initially plunged 7.6% before recovering to close up 1.1%, the real story is how established pharma giants are strategically positioning against emerging competitors like Viking Therapeutics (VKTX) and Amgen (AMGN).

Market Pulse:

"The obesity treatment gold rush has entered its next phase. Early prospectors are now building railroads, making the journey more accessible to the masses," notes veteran healthcare analyst Rebecca Willson.

Bull’s Take:

Smart investors recognize this price war as market expansion, not destruction. The companies building sustainable advantages in manufacturing scale, distribution, and next-generation formulations will likely deliver substantial long-term returns as this massive market evolves.

Headlines

• Nvidia-backed cloud firm CoreWeave to acquire AI developer platform Weights & Biases (link)

• MongoDB shares sink after company issues weak guidance (link)

• Microsoft-OpenAI Partnership Gets U.K. Antitrust Clearance (link)

• Tariffs Weigh On E-Commerce Stocks. Analyst Sees eBay, Amazon As 'Better Positioned.' (link)

• Walmart, KKR to sell Japanese grocer Seiyu for about $2.54 billion (link)

• Abercrombie & Fitch Stock Plunges as Outlook Underwhelms (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin Crosses $90K as Trump Delays Canada, Mexico Auto Tariffs (link)

• Metaplanet presses on with bitcoin purchases, adds another $43.9 million worth of BTC (link)

• Early Solana backer Foundation Capital raises $600 million for 11th fund (link)

DAILY SHARE
On the Socials