Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The Dow and S & P 500 were lower Friday after surging to record highs Thursday in response to the Fed cutting rates of interest by 50 basis points. It has been a powerful week for stocks with the S & P 500 gaining roughly 1.5%. The highest performing sectors week so far were energy, communication services, financials and industrials. Only three sectors were on pace for a down week: real estate, consumer staples, and health care. Obesity drugs: Latest information often sends one company’s stock higher and causes its biggest competitor to fall. Take a take a look at shares of Club name Eli Lilly . They were trading higher in a soft market after a key competitor within the obesity space reported disappointing Phase 2 trial results. That competitor, Novo Nordisk , said Friday its medicine monlunabant, which is a small molecule oral cannabinoid receptor (CB1) inverse agonist, showed weight reduction of about 6% at 16 weeks. This was an enormous disappointment. The outcomes fell in need of Lilly’s lead every day oral GLP-1 orforglipron, which has showed about 8% weight reduction in 16 weeks and was well below what Novo previously suggested. Analysts at Deutsche Bank called the trial results underwhelming, adding it “removes the threat of a big well-capitalized, small-molecule competitor to LLY’s orforglipron.” Competition within the obesity space goes to heat up over the subsequent few years, but this disappointment from Novo Nordisk shows how hard it’s to make a secure and effective drug. That is why we have long disagreed with the selling of Eli Lilly when a competitor puts out a press release of an early-stage trial. Some medicines will work, some won’t. Some can be highly effective, others won’t move the needle. Some can have safety and tolerability issues. That is the character of the business. But what we all know now could be that Eli Lilly’s leadership is not going away any time soon because of its current lineup of obesity medications, robust pipeline, and large manufacturing scale. Cybersecurity stocks: In other scenarios, each an organization and its competitor can trade up on latest news. CrowdStrike shares were on the move higher after the cybersecurity company hosted its annual conference. One in every of the important thing revelations from the event was the little or no customer churn within the aftermath of the worldwide IT outage it caused in July. Recall, that we initially had a view that competitors like Club name Palo Alto Networks would benefit from this event to pitch their products. Nonetheless, we won’t say we’re completely surprised to see only a few customers leave CrowdStrike. After we checked out Palo Alto’s quarter in August, the outcomes didn’t show an enormous swing in market share resulting from the outage. Sure the quarter was good because Palo Alto has an awesome product and value proposition, however it didn’t suggest a large departure from CrowdStrike. Each firms are great. So why aren’t Palo Alto shares lower? CrowdStrike’s commentary likely indicated that spending on cybersecurity continues to be healthy, which advantages each firms. Up next: We’ll see a pickup in earnings next week. A few of the notable reports are from KB Home , which can provide insight into housing, and Micron , which can give us an excellent look of demand and inventory levels for prime bandwidth memory (which feeds into AI chips) in addition to cellphones and private computers. Jefferies , which is at all times an excellent preview into the banks, and Club name Costco , which is an excellent read on consumer spending, are also out next week. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked a couple of stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
