Novo Nordisk boosts sales and profit forecast on strong Ozempic, Wegovy sales in the U.S.
Danish drugmaker Novo Nordisk raised its sales and profit forecast for 2023, citing robust sales of its diabetes and weight loss drugs Ozempic and Wegovy in the U.S.
Shares popped as much as 3% in premarket trading after it said 2023 sales growth is anticipated to be in the range of 32% to 38%, up from a prior range of 27% to 33%. Operating profit growth will come in at about 40% to 46%, compared with an earlier estimated increase of 31% to 37%.
Novo Nordisk shares have risen about 4% over the past month.
The company’s U.S.-traded shares are up more than 48% in the year-to-date period.
—Christina Cheddar Berk
Consumer sentiment slips, inflation outlook spikes, survey shows
Consumer sentiment slumped in October while inflation expectations spiked, according to the University of Michigan’s closely watched survey.
The survey posted a headline reading of 63, down from 68.1 in September and below the Dow Jones estimate for 67.4, a preliminary reading released Friday showed. The current conditions index also moved down, to 66.7 from 71.4.
On inflation, the one-year outlook jumped to 3.8%, up from 3.2% and the highest reading since May. On a five-year basis, the outlook moved up to 3% from 2.8%.
Stocks open higher on Friday
Major stock indexes opened higher on Friday as major banks released earnings.
— Pia Singh
Stocks making the biggest moves premarket
Check out the companies making headlines before the bell:
Read the full list here.
— Sarah Min
Fed’s Harker says rates don’t need to go any higher
In what may be the most explicit endorsement yet of an interest rate freeze, Philadelphia Federal Reserve President Patrick Harker on Friday said the central bank likely has done enough, at least for now.
“Absent a stark turn in what I see in the data and hear from contacts … I believe that we are at the point where we can hold rates where they are,” Harker said in prepared remarks for the Delaware State Chamber of Commerce.
As a voting member this year on the Federal Open Market Committee, Harker’s words carry extra weight. He added that he won’t hesitate to vote for higher rates if the inflation data turns, and said he is in the “higher for longer” camp on monetary policy.
Citigroup stocks rises as quarterly revenue tops $20 billion
Shares of Citigroup rose more than 2% in premarket trading after the bank’s third-quarter report showed stronger-than-expected revenue.
Here is how the bank’s results compared to estimates from analysts surveyed by LSEG, formally Refinitiv.
- Earnings per share: $1.63. Not comparable to the expected $1.21 due to divestitures. Excluding divestitures, earnings per share were $1.52.
- Revenue: $20.14 billion, vs. expected $19.31 billion
Citigroup saw solid year-over-year growth in both its institutional clients and personal banking and wealth management units.
— Jesse Pound
Shares of Dollar General jump on Gordon Haskett upgrade
Dollar General‘s latest leadership change could help re-stabilize the company and put it on track toward growth again, according to research firm Gordon Haskett.
Analyst Chuck Grom upgraded shares to buy from hold after the company announced former CEO Todd Vasos would be returning and replacing Jeff Owen as chief executive on Thursday.
The stock jumped 7.2% Friday during premarket trading. CNBC Pro subscribers can read more about the upgrade here.
— Hakyung Kim
Netflix shares fall 2% Friday premarket
Netflix shed 2% Friday before the bell following a downgrade from Wolfe Research.
Analyst Peter Supino downgraded the streaming service to peer perform from outperform. He said the company’s premium valuation may not be able to hold up against falling growth expectations.
Netflix shares fall Friday premarket
To read more about his downgrade, click here.
— Hakyung Kim
UnitedHealth reports better-than-expected earnings, shares jump
UnitedHealth shares were up 1.6% after the health insurance giant posted earnings of $6.56 per share for the third quarter, exceeding an LSEG estimate of $6.32 per share. Revenue of $92.4 billion was also above expectations.
Revenue from premiums and services topped analyst expectations. The company also raised its full-year earnings per share guidance.
— Fred Imbert
JPMorgan results top expectations
JPMorgan Chase reported third-quarter revenue of $40.69 billion, more than the LSEG analyst consensus of $39.63 billion. The bank said earnings per share for the period was $4.33, but it was not immediately clear whether that could be compared to the $3.96 consensus estimate from LSEG. It did appear to be a beat, but not clear by how much. Overall, net income was up 24% for the quarter and net revenue was up 15% excluding items related to the First Republic takeover. Higher rates helped the bank more than expected with interest income topping expectations.
There shares were slightly in the green following the results.
“Currently, U.S. consumers and businesses generally remain healthy, although, consumers are spending down their excess cash buffers,” noted CEO Jamie Dimon in the earnings press release.
BlackRock reports mixed third-quarter results
Asset management giant BlackRock reported mixed results for the third quarter, sending the stock slightly lower in the premarket. The company earned $10.91 per share, easily exceeding an LSEG estimate of $8.26 per share. Revenue, however, was in line at $4.52 billion.
“For the first time in nearly two decades, clients are earning a real return in cash and can wait for more policy and market certainty before re-risking. This dynamic weighed on industry and BlackRock third quarter flows,” CEO Larry Fink said in a statement.
— Fred Imbert
Oil jumps on tighter U.S. sanctions on Russian crude sales
Watch bank shares ahead of Friday’s earnings
JPMorgan Chase, Wells Fargo and Citigroup are on deck to report their latest quarterly earnings Friday morning.
For 2023, the three stocks are well ahead of the SPDR S&P Bank ETF (KBE). JPMorgan is posting an 8.7% gain this year, while Wells Fargo is off nearly 3.8% and Citigroup is down more than 8%. This compares to the nearly 20% loss KBE is facing in a year that has come with higher interest rates and slowing demand for loans.
JPMorgan and Citigroup are close to flat in the past month, but Wells Fargo has lost 6.5% in that period. All three are on pace for modest weekly gains. Friday’s results could sway the stocks during the session.
Read more about the upcoming bank earnings reports here.
–Darla Mercado, Ethan Kraft
Recovery will be the theme of the third-quarter earnings season, says Ed Yardeni
A strong third-quarter earnings season could set up markets for a year-end rally, according to Ed Yardeni.
The founder of Yardeni Research believes that earnings bottomed out in the second quarter and should be followed be a recovery in the third.
“What really came down is the profit margin because companies got squeezed but somehow or other, companies are starting to figure out ways to make their profit margin go up. The analysts consensus expectations are showing that,” he told CNBC’s “Closing Bell” on Thursday.
Against a macroeconomic backdrop of higher rates, Yardeni also believes that mega-cap tech companies could be a good bet, since they don’t have as much debt and are therefore less exposed to interest rate risks.
“I think tech could actually turn out to be the safe haven in an environment where interest rates are going to be higher for longer,” he said.
— Lisa Kailai Han
Shares of Dollar General rally nearly 8% in extended trading
Dollar General stock climbed nearly 8% higher in post-market trading hours after the company announced it was reinstating former CEO Todd Vasos.
DG 1-day chart
Vasos, who held the position from June 2015 to November 2022, will take the reins immediately from successor Jeff Owen. During Owen’s time in the role, the company faced declining sales growth and mounting criticism for its unsafe working conditions.
On Thursday, Dollar General also lowered its full-year profit guidance. The company now expects earnings of about $7.10 to $7.60 per share, versus prior forecasts of between $7.10 to $8.30 per share.
Read more about Todd Vasos’ return to Dollar General here.
— Lisa Kailai Han, Gabrielle Fonrouge, Jacob Pramuk
Stock futures are little changed
Read the full article here