Before the bell: European banks and insurers shine

While Warren Buffett loses a bit of wealth, shareholders in many tech companies—and by extension ETFs—are counting their gains. The Pentagon’s AI supplier is gearing up for yet another rally.

There was no sign of the pessimism that dominated markets last Friday. The S&P 500 rose 1.5%, and the Nasdaq even jumped 2%. Nvidia (+3.6%), Meta (+3.5%) and Alphabet (+3.1%) performed even better. ON Semiconductor (-15.6%) was the biggest loser in the S&P 500 after disappointing results. Other underperformers included Berkshire Hathaway (-2.9%) and Adobe (-2.6%). But overall, Wall Street was painted green. In Europe, it was also mostly gains. The Euro Stoxx 50 climbed 1.5%, with banks and insurers leading the charge. Think Banco Santander (+4.0%), UniCredit (+3.7%), and Allianz (+3.4%). In Brussels, Ageas (+2.0%) and KBC (+1.9%) followed suit. The sector’s rally is driven by strong earnings and the expectation that the ideal environment—a low short-term rate combined with a somewhat higher long-term rate—will persist for a while.

This morning, the Hang Seng in Hong Kong is up 0.3% while the Topix in Tokyo gains 0.8%. Mazda (+6.3%) is having a good day. Today’s earnings updates include Adecco, BP, Deutsche Post, Diageo, and Infineon. On Wall Street, it’s the turn of AMD, Caterpillar, and Pfizer. Palantir, the Pentagon’s AI supplier, is expected to surge after publishing better-than-expected results after the bell yesterday. Not all after-hours surprises were positive though—Hims & Hers, an online pharmacy, dropped over 15%.

Tyson Foods gives you wings

Ask me what comes to mind when I think of Tyson and cold cuts, and for some reason, I immediately think of “ear.” You too? But Tyson is much more than that—it’s one of the largest meat producers in the world. Yesterday, it beat expectations with solid earnings. Tyson Foods (+2.4%) saw quarterly revenue grow to 13.8 billion dollar, up 3.7% from the same period last year. Earnings per share came in at 87 cents, well above the 81 cents analysts had expected. Sales of chicken in particular are on the rise, with volumes up 2.4%. That’s largely because chicken prices remained flat year-on-year, while beef became 10% more expensive due to shortages and drought. The American consumer clearly knows what to choose. Tyson is strong in poultry and sells popular snacks like Chicken Nuggets and even Dino Nuggets. Shareholders haven’t made much money in recent years though—a Tyson share cost 93 dollar in December 2021, and just 53.81 dollar today. But if you look at the stock chart since early 2024, the share is sitting at a support line. The downward trend of lower highs didn’t look good, but that pattern now seems to be breaking. That’s “seems,” not “will”—technical analysis is about probabilities, never guarantees.

Vultures on the weight-loss market

More bad news for Novo Nordisk. Next year, the Canadian patent for the active ingredient in its blockbuster drugs Ozempic and Wegovy will expire. Sandoz, a generics maker spun off from Novartis in 2023, is preparing to launch cheaper alternatives in Canada using semaglutide. These generics are expected to be up to 70% cheaper than the Danish firm’s branded products. In the United States, the semaglutide patent won’t expire until 2032, but Canadian sales could still disrupt things. More than 15% of all prescription drugs sold in Canada ultimately end up on the US market. The state of Florida already has a framework in place to import medicine from Canada. For now, that program doesn’t apply to weight-loss medications. Rival Eli Lilly’s drugs Mounjaro and Zepbound, which use the tirzepatide molecule, are protected by patents in Canada and the US until 2036. Eli Lilly is also preparing to launch a pill version, which could prove even more popular.

Did you know…

that Figma shares fell 27.4% on the New York Stock Exchange yesterday? Just last week, investors were scrambling for shares during its IPO, pushing the price from 33 dollar to 134 dollar. Yesterday’s closing price: 88.60 dollar.

This article was translated from Dutch and was originally published on Spaarvarkens.be.