The S&P 500 saw a slight increase of 0.17% as markets concluded on 11-06-2023. The Dow Jones Industrial Average also experienced a rise, finishing 0.1% higher, while the Nasdaq Composite rose by 0.3%. The 10-year Treasury yield rose 1.68% to 4.662.
Chris Davis (Trades, Portfolio), chairman and portfolio manager of Davis Advisors, commented on the return to fundamentals in the market. He emphasized the importance of focusing on characteristics like durability and resiliency in the current market environment. Davis also mentioned the role of Berkshire Hathaway B (BRK.B, Financial) in this shift.
Mizuho's "Americas Top Picks" report for November highlighted Amazon.com (AMZN, Financial) and Trip.com (TCOM, Financial) as top picks in the technology sector. The report suggests that Amazon Web Services is underappreciated by investors and predicts a significant increase in cloud migration over the next five years.
Shares of MSP Recovery (LIFW, Financial) saw a significant increase, rocketing as much as 540% on Monday. The company, which provides payer reimbursement recovery services, didn't release any news or make any new SEC filings on Monday, making the surge in stock price noteworthy.
Point Biopharma Global (PNT, Financial) rose 2% as a large holder expressed opposition to the $1.4 billion sale to Eli Lilly (LLY, Financial). Biotechnology Value Fund, which has a 16.5% stake in Point Biopharma, stated that closing the proposed acquisition in advance of the imminent Phase 3 SPLASH Study results is not in the best interest of PNT holders.
CG Capital Markets' U.S. Equity Research report suggested that the S&P 500 is "still too top heavy" but small cap stocks might see a relative bounce. The report highlighted the top 10 stocks driving the S&P 500, including Apple (AAPL, Financial), Microsoft (MSFT), Amazon.com (AMZN, Financial), Nvidia (NVDA, Financial), Alphabet Class A (GOOGL, Financial), Tesla (TSLA, Financial), Meta Platforms (META, Financial), Alphabet Class C (GOOG, Financial), Berkshire Hathaway (BRK.B, Financial), and United Health Group (UNH, Financial).
Apple's (AAPL, Financial) updated Macs received positive reviews, particularly for their battery life. Despite facing increased competition, Apple is praised for improving its gaming capabilities. However, Mac sales dropped 27% in the fiscal 2023 year compared to the previous period.
Vertex Pharmaceuticals (VRTX, Financial) reported Q3 Non-GAAP EPS of $4.08, beating estimates by $0.11. However, the revenue of $2.48B (+6.4% Y/Y) missed by $20M. The company raised its full year 2023 product revenue guidance to approximately $9.85 billion.
CF Industries (CF, Financial) experienced a 3% drop in Monday's trading as Scotiabank downgraded the nitrogen fertilizer producer to Sector Perform from Sector Outperform. The downgrade comes as the nitrogen thesis for 2023 has largely played out and European gas prices have doubled since the summer.
Devon Energy (DVN, Financial) is scheduled to announce Q3 earnings results on Tuesday, November 7th, after market close. The consensus EPS estimate is $1.55 and the consensus revenue estimate is $3.63 billion.
The U.S. appeals court directed a federal judge in West Virginia to review a patent case in which Johnson & Johnson (JNJ, Financial) won a favorable ruling against Viatris' (VTRS, Financial) attempts to market a generic version of Veletri, a drug for pulmonary arterial hypertension (PAH).
Nutrien (NTR, Financial) saw a 4.1% drop in Monday's trading as J.P. Morgan downgraded the stock to Neutral from Overweight. The downgrade comes as the company's EBITDA continues to make its way lower from the peaks reached during the early days of the Russia-Ukraine conflict.
Evercore ISI indicated over the weekend that "lines have held" for the S&P 500 (SP500), confirming a trend that points to potential upside by the end of the year. The firm also outlined that shares of Nvidia (NVDA, Financial), which it said is "arguably the most important stock in the world right now," has also held support.
An expert witness testified on Monday that Google (GOOG, Financial) (GOOGL, Financial) doesn't just compete with traditional search engines for queries, but rather several companies in the battle to provide information to consumers. This includes Amazon (AMZN, Financial), which sees more than 2B site visits per month.
Wells Fargo raised red flags about the tone of corporate guidance, leading the firm to worry about the strength of Q4 results. The firm noted that earnings so far have "come in ~7% above consensus to date, mostly on margin strength" but "guidance trends have disappointed and point to a cautious Q4."
