economy
Obesity drugs approach a major milestone, and Lilly may have a 'game changer' ahead
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- The S&P 500 and Nasdaq are aiming to avoid a fourth consecutive down session.
- Micron's positive earnings bolstered the semiconductor and data center theme, but cloud hyperscalers like Amazon, Microsoft, Meta, and Alphabet are seeing stock declines.
- Jim Cramer noted that memory chip shortages are impacting hyperscalers' growth plans.
- Eli Lilly's stock increased after Leerink raised its price target by 10%, anticipating strong international sales for its GLP-1 drugs.
- Medicare coverage for obesity drugs, including Lilly's Foundayo and Zepbound, begins July 1, with a temporary program running through 2027.
- Analysts consider Lilly's combination therapy of tirzepatide and eloralintide a potential 'game changer' in obesity treatment.
- FedEx Freight will report earnings, with attention on industry trends and margin improvement.
- The University of Michigan's consumer sentiment and inflation expectations survey will be released.