Breakfast News: Healthcare Examination

Breakfast News: Healthcare Examination

Source: Image Created by Jester AI.

1. Pharma in the Spotlight

Stock Advisor recommendation Novo Nordisk (NVO -3.06%) has submitted an application to the FDA for approval of an oral version of its weight loss medicine, Wegovy. Studies show a 15% weight loss with a 50mg dose. The stock rose over 4% in pre-market trading in response.

• Shares soared 15% last Thursday: This comes after Eli Lilly (LLY -1.14%) recently reported strong test data for its own weight loss pill.
• Dealing with expected 31% Swiss import tariff: Pharma giant Roche announced it will be investing $50 billion in the U.S. over the next five years, creating 12,000 jobs, as the sector aims to deal with looming levies from the Trump administration.

2. Amazon Pullback on AI Spend

Amazon (AMZN -0.15%) closed 3% lower following reports it has paused some data center leases, along with having an analyst price downgrade.

• "We heard from several industry sources that AWS has paused a portion of its leasing discussions": Eric Luebchow of Wells Fargo (WFC -0.52%) told clients he believes this is similar to what Microsoft (MSFT -0.37%) has done, in that although AI demand is still there, sky-high expectations need to be tempered.
• Around 30% of Amazon's gross merchandise value comes from China: Josh Beck from Raymond James (RJF -0.31%) expressed concern about the impact of the U.S./China trade war as well as the risks associated with the $100 billion capital investments planned for this year alone.

3. China Offers Tariff Warning

China cautioned against other nations agreeing to trade deals with the U.S. that compromise Chinese interests. The statement threatens to spill over the trade spat to a wider audience.

• Joint efforts to oppose "unilateral bullying": As President Xi returns from a trip to Southeast Asia, the U.S. is set to impose new duties on solar imports from Cambodia, Vietnam, Malaysia, and Thailand. The tariffs vary, with the highest set at a whopping 3,521%.
• Tariff pressure felt elsewhere: India is reportedly being pushed by the U.S. administration to give more access to its $125 billion e-commerce market as part of a trade deal. Such a move would be a win for U.S. online retailers including Amazon and Walmart (WMT 0.43%).

4. Next Up: Earnings Rev Up

Tesla (TSLA -3.17%) reports after the market closes. Reports of a delay to the lower-cost Model Y and being sued for allegedly speeding up its odometers led to the stock falling almost 6% Monday.

• Beating the S&P 500 by 72% since 2020 recommendation: Rule Breakers rec Intuitive Surgical (ISRG -0.59%) will also report after the closing bell, with the Q1 report likely showing further growth in the number of da Vinci systems placed and the amount of procedures performed.
• Watching for commentary on trade implications: GE Aerospace (GE 0.46%) will report ahead of the market opening. Shareholders are hoping for a fifth straight beat in the consensus earnings per share, with eyes on total orders growth in commercial and defense sectors.

5. Bitcoin Ignores Stock Slump

Bitcoin (BTC -3.56%) traded close to $89k, reaching the highest level since President Trump first announced reciprocal tariffs at the start of April.

• Pressuring for lower interest rates: The president's criticism of the U.S. Federal Reserve Chair Jerome Powell and his lack of desire to cut interest rates could help crypto coins to rally further, especially if Powell is replaced with a new chairman who lowers rates sharply.
• Digital asset reserves in spotlight: The Texas House is due to debate the Texas Senate Bill 21 on Wednesday, with the bill aiming to establish a strategic Bitcoin reserve, with a market cap of at least $500 billion.

6. Foolish fun

Novo Nordisk is growing faster in recent years than it has at any point in this millennium. But which pharmaceutical stock do you think has the best capacity to beat the market over the next 5+ years: Novo, Eli Lilly, Amgen (NASDAQ:AMGN), or a different company? Debate with friends and family, or become a member to hear what your fellow Fools are saying!