Shopper Staples Might Proceed to Entice Traders
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Traders who’ve recently turned to shopper staples as a protection towards volatility might achieve this for some time, UBS analysts mentioned.
The Consumer Staples Select Sector SPDR Fund (XLP), which tracks staples corporations, has outperformed the S&P 500 since late February, rising greater than 5% over the previous month because the broader index fell. XLP contains companies that manufacture and promote meals, drinks and different family items, which might attraction to buyers looking for to hedge towards uncertainty.
A “flight to security” isn’t shocking, UBS analysts mentioned, regardless of issues that sturdy income within the sector might now not be a given. Spending tendencies have moderated in latest weeks, which could possibly be a response to poor climate and different non permanent dynamics—or an indication of “issues to come back,” the analysts wrote Monday.
That mentioned, different tendencies—together with some decrease commodity costs and a weakening dollar—might shore up backside strains, the analysts wrote in one other latest observe.
Investor enthusiasm for the sector is unlikely to wane “with many now believing that so long as volatility/uncertainty persists out there, there will likely be larger curiosity in Staples no matter fundamentals,” UBS analysts wrote Friday.
Staples shares had been amongst few S&P 500 sectors gaining on Monday amid the broader, tech-led sell-off. The Archer-Daniels-Midland Firm (ADM), which sells components for human and pet meals, was up 3% in latest buying and selling; Brown Forman (BF.B), the corporate behind Jack Daniel’s, added 2%; and McCormick & Co. (MKC), recognized for spices and sauces, rose 2%.
What Analysts Consider Oracle Forward of Earnings Late Monday
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Oracle (ORCL) is ready to report fiscal third-quarter outcomes after the market closes at present with analysts awaiting income development and doable commentary on the corporate’s Stargate joint venture.
Of the 14 analysts masking the inventory tracked by Seen Alpha, eight have “purchase” or equal rankings, with six giving the inventory a “maintain” score. Their consensus worth goal is close to $194, representing an upside of greater than 30% from the inventory’s present stage.
Oracle shares had been down 5% in latest buying and selling amid the broader tech-led sell-off for U.S. equities on Monday.
The cloud companies large is anticipated to report fiscal first-quarter income of $14.37 billion, up round 8% year-over-year. Adjusted earnings are anticipated to land at $4.29 billion, or $1.49 per share, up from $3.98 billion, or $1.41 per share, a 12 months earlier.
UBS analysts mentioned they are going to be awaiting commentary on Stargate, Oracle’s three way partnership with OpenAI and SoftBank. Data on the as much as $500 billion artificial intelligence infrastructure venture “has the potential to outweigh every thing else” from Oracle’s earnings name, the analysts mentioned. UBS maintained a “purchase” score and $210 worth goal.
“Sentiment has been incrementally extra constructive publish the [Jan. 21] Stargate announcement,” Jefferies analysts mentioned not too long ago, reiterating a worth goal of $220.
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Shares of Oracle are down this 12 months however up about 30% over the previous 12 months.
Tesla Shares Down 50% From December Document Excessive
2 hr 16 min in the past
Tesla (TSLA) shares plummeted on Monday and have given up greater than half their worth since hitting an all-time excessive in mid-December.
With at present’s decline, the inventory is under its closing stage on Election Day (Nov. 5). Tesla shares soared within the wake of Donald Trump’s election as buyers positioned bets that CEO Elon Musk’s shut relationship with the president would profit the EV maker.
Since Trump took workplace in January and Musk began working within the cost-cutting Department of Government Efficiency, shares have tumbled. They’ve been pressured by weak fourth-quarter deliveries and earnings, uncertainty round Trump’s tariffs, and declining sales in China and registrations in Europe to start the year. More and more, buyers have puzzled whether or not Musk’s DOGE involvement may hurt Tesla’s brand and gross sales going ahead.
Analysts stay divided on the inventory, with the 19 brokers tracked by Seen Alpha break up between 10 “purchase,” 5 “maintain,” and 4 “promote” rankings.
UBS analysts on Monday maintained their “promote” score and lowered their worth goal to $225 from $259, and reduce their estimates for first-quarter deliveries to 367,000 from 437,000 beforehand. They mentioned the brand new Mannequin Y and a yet-to-be-announced decrease price mannequin will possible assist gross sales, however see demand for the brand new Mannequin Y as “considerably muted” to this point, and count on a lower-cost car to come back with a decrease margin.
Tesla shares not too long ago had been down 12% at round $232. The inventory is down 52% from its all-time closing excessive of $479.86, set on Dec. 17.
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Tesla inventory is down 43% to this point in 2025, making it the most important decliner among the many Magnificent Seven group of main tech corporations.
DexCom Drops as Diabetes System Maker Will get FDA Warning
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Shares of DexCom (DXCM) sank Monday morning after the maker of glucose monitoring units reported it had obtained a warning letter from federal regulators over the situation of two of its manufacturing crops.
The corporate mentioned the letter from the Food and Drug Administration (FDA) famous “deficiencies within the response” from DexCom to the FDA’s Kind 483, which outlines observations from investigators.
The corporate famous the FDA held inspections of its San Diego, Calif., and Mesa, Ariz., amenities final 12 months, which discovered “non-conformities in manufacturing processes and high quality administration system.”
DexCom mentioned that it has “already submitted a number of responses to the Kind 483 and is within the means of making ready a written response to the warning letter.” It added that it plans “to proceed to undertake sure corrections and corrective actions,” though can not assure the FDA will likely be glad with the response by the deadline regulators have set.
The corporate identified that its operations are usually not being affected and it sees no materials influence from the warning letter.
DexCom shares had been down 7% not too long ago and have misplaced about 45% of their worth over the previous 12 months.
Novo Nordisk Drops on Newest Weight-Loss Drug Examine
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Novo Nordisk’s (NVO) U.S.-listed shares fell Monday morning following the discharge of knowledge for a brand new phase 3 clinical trial of its in-development weight reduction drug CagriSema.
Within the second section 3 research for the mixture drug, the typical weight reduction among the many roughly 1,200 sufferers within the research who took CagriSema was 15.7% of their physique weight after 68 weeks, in comparison with 3.1% for these taking a placebo.
The research from the maker of Ozempic and Wegovy follows the primary Part 3 trial results for CagriSema in December that noticed sufferers lose 22.7% of their physique weight. Shares sank 17% following that research, as Bloomberg had reported forward of the outcomes that Novo Nordisk was aiming for a 25% weight reduction with the brand new drug.
Novo Nordisk nonetheless has two extra Part 3 trials scheduled for CagriSema, and mentioned Monday it nonetheless expects to submit the drug for regulatory approval within the first quarter of 2026.
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Shares of the Danish drugmaker had been down 9% in latest buying and selling. Whereas shares had risen not too long ago following different trial results and solid sales of its present weight reduction medicine, they’re down 40% over the previous 12 months.
Redfin Inventory Soars on Cope with Rocket Firms
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Redfin (RDFN) shares soared in early buying and selling Monday after mortgage large Rocket Firms (RKT) introduced it was shopping for the digital actual property brokerage in an all-stock deal valued at $1.75 billion.
Rocket mentioned the transaction values Redfin shares at $12.50 every and “connects Redfin’s practically 50 million month-to-month guests to Rocket’s mortgage merchandise.”
Redfin shares had been up 74% at $10.15 within the opening minutes of at present’s session. Shares of the Detroit-based Rocket had been down 11%.
Rocket mentioned it “expects the mixed firm to attain greater than $200 million in run-rate synergies by 2027,” and that the deal is anticipated to be accretive to its adjusted earnings per share (EPS) by the top of 2026. As soon as the transaction closes, present Rocket shareholders will management 95% of the mixed agency, whereas Redfin shareholders will personal the remainder.
“Collectively, we are going to enhance the expertise by connecting historically disparate steps of the search and financing course of with main expertise that removes friction, reduces prices and will increase worth to American homebuyers,” Rocket Firms CEO Varun Krishna mentioned.
Getting into Monday, Rocket Firms shares had added practically 1 / 4 of their worth over the previous 12 months, whereas Redfin inventory had misplaced about 18% of its worth in that span.
Main Indexes Have Given Again Their Submit-Election Features
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The post-election good points that U.S. shares registered have evaporated in the course of the latest droop.
Shares hit a collection of document highs within the weeks that adopted the presidential election amid optimism surrounding President Trump’s pro-business agenda, amid expectations for increased ranges of funding, decrease taxes and a discount in regulatory boundaries. In latest weeks, nonetheless, issues about Trump’s plans for tariffs—and the on-again, off-again nature of the bulletins—have roiled markets.
The S&P 500 is down greater than 6% from its document excessive set on Feb. 19 and has misplaced floor in every of the final three weeks. The Nasdaq is down practically 10% from its document excessive set in mid-December. Each of the indexes final week dropped under the degrees they had been at on the Nov. 5 election day.
The Dow Jones Industrial Common enters Monday’s session 1.4% above its shut on election day, although futures point out that the blue-chip index will fall to about that stage this morning.
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To date in 2025, the Dow is up lower than 1%, whereas the S&P 500 has misplaced 1.9% and the Nasdaq is down 5.8%.
Main Inventory Index Futures Slide
7 hr 12 min in the past
Futures tied to the Dow Jones Industrial Common had been down 1%.
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S&P 500 futures fell 1.2%.
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Nasdaq 100 futures had been off 1.4%.
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