Latest News

Eli Lilly earnings ahead, Toyota lifts annual guidance – what’s moving markets


Eli Lilly earnings ahead, Toyota lifts annual guidance – what’s moving markets By

Breaking News


AuthorScott KanowskyStock Markets

Published Feb 06, 2024 10:42

© Reuters. — Eli Lilly is due to headline a slew of quarterly returns, with the performance of its all-important diabetes drug in focus. Toyota (NYSE:TM) hikes its full-year profit outlook, sending U.S.-listed shares in the Japanese carmaker higher in premarket trading. Chinese equities gain as the country’s top market regulator offers new support measures.

1. U.S. futures mixed

U.S. stock futures traded around both sides of the flatline on Tuesday, with investors gearing up for a fresh batch of corporate results.

By 05:14 ET (10:14 GMT), the S&P 500 futures contract was mostly unchanged, Nasdaq 100 futures had added 28 points or 0.2%, and Dow futures had slipped by 72 points or 0.2%.

The main averages in Wall Street ended the prior session in the red, dragged down by fresh interest rate commentary from Federal Reserve Chair Jerome Powell. In an interview with CBS aired on Sunday, Powell suggested that recently strong economic data gave the Fed more time to wait before starting to bring borrowing costs down from more than two-decade highs.

The statement further tempered waning hopes for an imminent cut, placing upward pressure on U.S. Treasury yields and weighing on equities. Yields tend to move inversely to prices.

2. Eli Lilly earnings ahead

Traders are eyeing a busy week of corporate earnings, which will be highlighted on Tuesday by results from Eli Lilly (NYSE:LLY).

The U.S. drugmaker’s weekly diabetes injection Mounjaro will likely be a key focus, particularly after the soaring success of a rival version from Denmark’s Novo Nordisk (NYSE:NVO). At stake in this race is dominance in a booming market for weight-loss drugs that is estimated to be worth $80 billion a year by the end of the decade. Novo Holding’s — the parent of Novo Nordisk — announced on Monday that it would purchase Catalent (NYSE:CTLT) for $11.5B in a bid to bolster its supply of anti-obesity drugs.

Demand is also increasing for Mounjaro, which was approved for weight loss in the U.S. under the brand name Zepbound. The clamor has been so strong that the top American drug regulator warned earlier this week that only limited amounts of three of the higher doses of the shot will be available through early March. Lilly said that other Mounjaro doses are still in stock, adding that it is working to address any potential disruption to people’s treatment regimens.

Elsewhere on the earnings calendar, biotech group Amgen (NASDAQ:AMGN), drug manufacturer Gilead Sciences (NASDAQ:GILD), carmaker Ford Motor (NYSE:F), and burrito chain Chipotle Mexican Grill (NYSE:CMG) are due to report after the bell on Tuesday.

3. Toyota lifts full-year income outlook

Toyota has raised its annual profit guidance after solid sales of its higher-margin and hybrid vehicles partly drove a third-quarter earnings beat.

The world’s best-selling automaker said it now expects income for the year ending in March to come in at 4.9 trillion yen, up from previous projections of 4.5 trillion yen. Analysts had seen the forecast at 4.6 trillion yen, according to LSEG data cited by Reuters.

Hybrid car sales spiked 46% in the three months ended on Dec. 31. Demand growth for the Japanese firm’s hybrids — which include the popular Prius model — was especially notable in the U.S., where more cost-conscious buyers are opting to avoid elevated electric vehicle prices.

Buoyed as well by a weaker yen, Toyota’s operating profit of 1.68 trillion yen in the third quarter topped expectations.

However, Toyota cut its annual vehicle sales target following the suspension of shipments at its Daihatsu Motor unit due to an ongoing scandal around product certification test procedures.

4. Chinese stocks jump after market regulator offers support

The China Securities Regulatory Commission has said it will guide more local funds and asset managers to buy into the domestic market, while also instructing local firms to repurchase more shares.

Chinese equities, which were the worst performers in Asia throughout 2023 and have endured little relief so far this year, gained on Tuesday.

Recent media reports also said that China was tightening its regulatory grip on volatile movements in stock markets, and had instructed major fund managers to block customers from shorting local shares.

But it remains to be seen whether the measures can spur a sustained recovery in Chinese stocks. Concerns over slowing economic growth in the country have been a major catalyst of a rout in domestic equities, and have largely offset monetary stimulus measures from Beijing.

5. Oil prices choppy

Oil prices were volatile on Tuesday, as traders gauged geopolitical tensions and fading bets that the Federal Reserve will unveil early interest rate cuts.

Market participants are closely monitoring if U.S. Secretary of State Antony Blinken’s trip to the Middle East can result in a truce in the war between Israel and Hamas. The U.S. has also been continuing its campaign against Yemen-based Houthis, who have carried out attacks on shipping vessels in response to the Israel-Hamas conflict. 

Meanwhile, Reuters reported that analysts have flagged concerns that an extended period of restrictive Fed policy could weigh on activity in the U.S., the world’s top crude consumer. Sluggish growth in top oil importer China have also negatively impacted sentiment, Reuters added.

Brent oil futures expiring in April had fallen 0.1% to $77.89 a barrel, while West Texas Intermediate crude futures dipped 0.2% to $72.68 per barrel by 05:14 ET.

Eli Lilly earnings ahead, Toyota lifts annual guidance – what’s moving markets

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Forget Nvidia: These 2 Artificial Intelligence (AI) Stocks Are Still Historically Cheap

Previous article

The odds of a rate hike for the UK in 2024 – what if 87% of people are wrong?

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News