Shares of Viking Therapeutics (VKTX, Financial) skyrocketed in premarket trading after the biopharmaceutical company announced positive results from a phase 2 trial of its obesity drug, VK2735. The VENTURE trial met its primary endpoint and all secondary endpoints, showing significant reductions in body weight compared to the placebo group. The drug was also well-tolerated, with most adverse events being mild or moderate. This news has impacted the shares of other companies in the weight loss drug market, with Novo Nordisk (NVO, Financial) and Eli Lilly (LLY, Financial) experiencing declines in premarket trading.
As the semiconductor industry continues to navigate through mixed demand, Citi analysts have expressed bullish sentiments, expecting at least 11% year-over-year revenue growth in 2024. The firm remains confident in companies linked to artificial intelligence, DRAM, and semiconductor equipment, highlighting Nvidia (NVDA, Financial), AMD (AMD, Financial), and Broadcom (AVGO, Financial) as stocks to watch. Citi's optimism is based on the growing AI market and the potential for total addressable market expansion.
Investors are taking a cautious stance as they await the release of key economic data, including the Federal Reserve's preferred inflation gauge, the personal consumption expenditures index. This data, along with GDP figures, jobless claims, and manufacturing activity numbers, will be crucial in shaping market expectations for interest rate movements. Meanwhile, the 10-year yield (US10Y, Financial) has seen a slight decrease, indicating a lower interest rate environment.
Bank of Nova Scotia (BNS, Financial) saw its shares rise after reporting an increase in net interest income for the quarter ended January 31, 2024. The bank's International Banking and Canadian Banking segments led the earnings performance, with adjusted earnings per share and net interest income both showing growth from the previous quarter and year-over-year.
Bitcoin (BTC-USD, Financial) experienced a significant surge, reaching a two-year high, driven by the upcoming Bitcoin Halving event and a substantial purchase by MicroStrategy (MSTR, Financial). The cryptocurrency's rally was supported by a high trading volume, indicating strong investor interest and confidence in the market.
Several companies reported earnings, leading to a mix of winners and losers in premarket trading. Notable decliners included Thoughtworks Holding (TWKS, Financial), Aarons Company (AAN, Financial), and Unity Software (U, Financial), while gainers featured Janux Therapeutics (JANX, Financial) and PubMatic (PUBM, Financial), among others.
Arm Holdings (ARM, Financial) experienced a slight increase in shares despite a downgrade by New Street Research, which cited an "unattractive risk reward" at current levels. The firm compared Arm's valuation to its semiconductor peers, suggesting that the stock may be overvalued unless the company significantly exceeds quarterly estimates.
JetBlue Airways (JBLU, Financial) and Spirit Airlines (SAVE, Financial) are seeking to overturn a judge's ruling that blocked their planned merger, arguing that the combination would enhance competition and benefit consumers. The airlines are challenging the U.S. Department of Justice's stance and are awaiting a response to their appeal.
Sony (SONY, Financial) announced layoffs in its Interactive Entertainment unit, which includes PlayStation, as the company adapts to changes in the gaming industry. Despite the layoffs, Sony's shares saw a slight increase in premarket trading.
Zoom Video Communications (ZM, Financial) saw its shares jump after reporting strong Q4 results and a positive outlook, along with the announcement of a new $1.5 billion buyback program. Hims & Hers Health (HIMS, Financial) also saw a rise in shares following its earnings call release.
Minerva Neurosciences (NERV, Financial) shares plummeted after the FDA rejected its schizophrenia drug candidate, roluperidone, requesting additional data to support its effectiveness. This decision has implications for other companies in the schizophrenia drug market, such as ACADIA Pharmaceuticals (ACAD, Financial) and Karuna Therapeutics (KRTX, Financial).
PPG Industries (PPG, Financial) was downgraded by Barclays following the announcement of a potential sale of its architectural coatings business in the U.S. and Canada. The downgrade reflects concerns about the company's valuation and performance relative to its competitors.
Macy's (M, Financial) announced plans to close 150 stores over the next three years, with 50 closures expected by the end of 2024. The company is also expanding its smaller-format stores, including Bloomingdale’s and Blue Mercury locations, as part of its strategy to adapt to changing consumer preferences.
Ault Alliance (AULT, Financial) reported a record increase in revenue for 2023, driven by growth in its data center and Bitcoin mining segments. The company's focus on these areas has contributed to its financial performance.
Roku (ROKU, Financial) faced a downgrade from Wells Fargo, with concerns about the impact of Walmart's (WMT, Financial) acquisition of Vizio on Roku's device sales and net additions. The analysts believe Roku will need to reposition itself in the face of this competitive shift.
U.S. home prices continued their upward trend in December, with the S&P CoreLogic Case-Shiller Home Price Index showing a modest month-over-month increase. This consistent rise in home prices reflects the ongoing strength of the housing market.
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