The stock market closed lower on Tuesday as Treasury yields rose to 4.69% from 4.62%. This was after labor market data showed that there were far more job openings in the US in November than expected. Such indicates economic strength which could keep the Federal Reserve from cutting interest rates further.
Overall, S&P 500 fell 1.1% to 5,909, while NASDAQ declined 1.9% to 19,490.
Tweet of the Day
https://twitter.com/GrowthStockGuy/status/1870497117212684493
Chart of the Day
Here is the ten-year chart of Eli Lilly (LLY) as of December 3, 2024, when the stock was at $813.
Eli Lilly stock fell as the sales of its weight-loss drug missed estimates. Mounjaro and Zepbound sales were expected to be at $5.5 billion last quarter, but the company only delivered $4.4 billion.
Despite such, management still claimed that GLP-1 shortage was over and may likely result to competitors stopping from selling their own versions of the weight-loss drug.
Still, sales were negatively impacted by lower inventory purchases from wholesalers. Under FDA rules, competition can come in and sell their own similar weight-loss drugs. Hims & Hers (HIMS) did this, and profited handsomely from their knock-off GLP-1 drug.
Looking ahead, Medicare & Medicaid might increase coverage for Eli Lilly’s weight-loss drugs to people without a chronic disease. This would be a big boost for sales.
LLY is part of our Conservative Growth Portfolio, Growth Portfolio, and Aggressive Growth Portfolio.