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  • 💉 Vaccine Stocks Caught A Cold

💉 Vaccine Stocks Caught A Cold

+ Disney Surges On Streaming Growth

November 14, 2024

Good afternoon! KFC is turning up the heat, filing a lawsuit against Church’s Texas Chicken for using the phrase “Original Recipe” in its ads. Apparently, KFC isn’t thrilled with Church’s “Our original recipe is back” campaign, claiming it steps on the toes of their famous 11 herbs and spices blend that’s been trademarked since 1984. The suit argues this could confuse fried chicken fans and dilute KFC’s brand.

Church’s isn’t clucking about it yet, opting for silence on the legal spat. But KFC fired off a spicy statement, saying they’re defending fried chicken lovers everywhere by protecting the “Original Recipe” brand.

MARKETS

  • Stocks kicked off strong on solid economic news: PPI hit the mark, and jobless claims dropped to their lowest since May. But Fed Chair Jerome Powell threw some cold water on the rally, suggesting the economy’s strength means no rush on rate cuts.

  • By the end, the Dow dipped 207 points, the S&P slid 0.6%, and the Nasdaq dropped 0.64%. Powell’s “wait and see” stance left investors questioning how much juice is left in this rally as inflation pressures linger.

STOCKS
Winners & Losers

What’s up 📈

  • Burberry soared 17.93% after its CEO announced a turnaround plan to address the brand’s recent decline. ($BURBY)

  • Tapestry surged 12.80% following the mutual termination of its planned merger with Capri, citing regulatory challenges. ($TPR)

  • Capri rose 4.43% after canceling the planned merger with Tapestry. ($CPRI)

  • Disney gained 6.23% on better-than-expected earnings, aided by streaming business growth and a promising 2025 guidance. ($DIS)

  • First Solar climbed 7.14%. ($FSLR)

  • CNH Industrial climbed 6.07% as David Einhorn of Greenlight Capital disclosed a new medium-sized position in the company. ($CNH)

What’s down 📉

  • Hims & Hers Health plunged 24.46% after Amazon entered the telehealth market with fixed-price treatments for hair loss and erectile dysfunction, creating direct competition. ($HIMS)

  • Ibotta fell 12.55% following disappointing fourth-quarter guidance, despite a positive last-quarter earnings report. ($IBTA)

  • Super Micro Computer dropped 11.41% as it approaches the November 16 deadline to file its annual report or face potential Nasdaq delisting. ($SMCI)

  • Trump Media & Technology Group declined 6.71% amid reports of insider stock sales and investor concerns over cabinet appointments. ($DJT)

  • Tesla slid 5.77% following reports that the Trump transition team is planning to end the EV tax credit. ($TSLA)

  • Lockheed Martin dropped 3.36%. ($LMT)

PHARMA
Vaccine Stocks Catch a Cold on Kennedy's Nomination

Vaccine stocks felt the pain Thursday after President-elect Trump tapped Robert F. Kennedy Jr., a vocal vaccine skeptic, to lead the Department of Health and Human Services (HHS).

With Kennedy’s track record of challenging vaccine safety, investors quickly hit sell on big names. Moderna ($MRNA) slid 5.6%, Novavax ($NVAX) lost 7%, while Pfizer ($PFE) and BioNTech ($BNTX) joined the red tide.

The market’s verdict? Kennedy’s policies could shake up the sector, potentially eroding public confidence and tightening regulations.

Uncertain Times for Vaccine Makers

For an industry already coping with waning COVID-19 vaccine demand, Kennedy’s HHS role injects new uncertainty. His anti-vaccine advocacy—and leadership of Children’s Health Defense, an anti-vax group—has industry players and investors bracing for possible policy headwinds.

Vaccine manufacturers now face the risk of reduced immunization rates, which could pressure their bottom lines even further.

Biotech Takes Note

Kennedy’s views extend beyond vaccines, casting a shadow over the wider biotech sector. With his skepticism about pharmaceutical companies, market watchers anticipate potential shifts in health policy that could impact drug development, approval timelines, and sales.

Analysts are on alert, viewing Kennedy’s influence as a wildcard that could affect drugmakers’ performance across the board.

Stock Market Reaction

The market is clearly concerned, and health stocks could be in for a bumpy ride if Kennedy’s nomination is confirmed.

With his anti-establishment approach, the biotech and vaccine sectors might see a heightened level of volatility, as investors weigh the long-term effects of Kennedy’s potential policy pivots on the healthcare landscape.

NEWS
Market Movements

  • 🗣️ Powell Signals Patience on Rate Cuts: Federal Reserve Chair Jerome Powell stated that strong U.S. economic growth allows policymakers to take their time on interest rate cuts. Powell highlighted resilience in the labor market and gradual progress toward the Fed's 2% inflation target. Stocks dipped following his comments, as traders adjusted December rate cut expectations. ($SPX)

  • ⚡ Tesla Stock Drops as Trump Trade Cools: Tesla shares declined 5.7% amid reports suggesting that the Trump administration may cut EV tax credits. The company also issued a sixth Cybertruck recall due to a faulty component, adding pressure on the stock. CEO Elon Musk, a Trump supporter, has advocated for deregulation in the auto sector. ($TSLA)

  • 📺 Network Viewership Shifts Post-Election: MSNBC's prime-time viewership dropped 53% since Trump's election win, while Fox News experienced a 21% audience surge, indicating contrasting viewer reactions post-election. ($CMCSA, $FOXA)

  • 🥪 Lunchables Dropped from School Lunches: Kraft Heinz is pulling Lunchables from the National School Lunch Program following concerns about sodium and heavy metals found in school-specific versions. The impact on sales is minimal, as these versions represent less than 1% of total sales. ($KHC)

  • 📄 Klarna Moves Toward U.S. IPO: Klarna, the Swedish payments company, has filed for a U.S. IPO, marking a rebound from previous valuation dips. Specific share details and pricing remain under wraps.

  • 📈 ASML Stays Confident with 2030 Forecast: ASML’s stock climbed over 3% after it reaffirmed its 2030 sales guidance of $46.5B-$63.4B, fueled by AI chip demand despite slowdowns in other sectors. ($ASML)

  • 📈 Foxconn Profits Surge on AI Server Demand: Foxconn, a supplier for Apple and Nvidia, reported a 14% increase in Q3 net profit to $1.52B, reaching record revenue of $56.88B, largely due to a 200% rise in AI server sales. The company expects AI servers to account for over half of its server revenue by 2025. ($SHA:601138, $AAPL, $NVDA)

  • 🤖 AMD’s Strategic Layoffs: AMD announced a 4% workforce reduction, cutting around 1,000 employees to focus resources on AI, competing directly with Nvidia’s lead. Despite growth in AI chip sales, AMD's stock trails behind Nvidia’s year-to-date gains. ($AMD, $NVDA)

ENTERTAINMENT
Disney Surges On Streaming Growth

Disney posted a strong Q4, crediting streaming wins and blockbuster hits for a 6% revenue rise, landing at $22.57 billion.

Bob Iger, back in the driver’s seat, forecasted earnings growth in the high single digits for 2025, with double-digit jumps through 2027. That news sent Disney’s stock up 9%—a glimmer of magic in an otherwise challenging media landscape.

Streaming Soars, Cable Sinks

Disney+ and friends (Hulu and ESPN+) notched a solid $321 million in profit, even adding 4.4 million new subscribers as its ad-supported tier gained traction.

Meanwhile, cable kept sliding, with revenue down 38% in a quarter where cord-cutting hit hard. It’s clear: streaming is Disney’s leading role now, as cable fades into the background.

The Box Office Magic Lives On

Thanks to Inside Out 2 and Deadpool & Wolverine, Disney’s studio turned in $316 million in quarterly profits, with both films setting records. As Disney eyes the holiday box office with Moana 2 and Mufasa, the studio’s on track to remain a top profit machine, contributing to a 14% jump in entertainment revenue.

Parks Keep Rolling Amid Storms

Theme parks felt the squeeze from rising costs and lower international attendance, but domestic parks held their own with solid guest spending.

Disney forecasts 6-8% growth for the parks in 2025, banking on upcoming expansions to keep the magic alive for tourists, even as international foot traffic takes a breather.

Calendar
On The Horizon

Tomorrow

The economic lineup eases up as we head into the weekend, but all eyes are on U.S. Retail Sales. This monthly Commerce Department report breaks down spending trends across everything from gadgets to cars. Last month’s numbers beat expectations, so economists are hoping for a repeat as we gear up for the holiday shopping rush.

Before Market Open:

  • Alibaba’s fortunes are tied to China’s shaky economy, and while government stimulus gave the stock a jolt in October, investors know that can’t be the whole game plan. They’ll be looking for management to outline how they’ll drive international growth and expand beyond retail. Wall Street’s calling for $2.10 EPS on $33.95 billion in revenue, so it’s time for Alibaba to show what’s next. ($BABA)

NEWS
The Daily Rundown

  • 🍽️ Wonder Buys Grubhub to Build Restaurant Empire: Grubhub is returning to American ownership as Netherlands-based Just Eat Takeaway sells it to Marc Lore’s startup Wonder for $650 million. Grubhub has struggled post-Covid, but Wonder aims to make it a key part of its expanding restaurant network.

  • 🇺🇸 GOP Gains Control of Congress: The Republican party has secured the House, Senate, and White House, with key nominations announced for Trump’s cabinet, including Matt Gaetz as Attorney General. This majority positions the GOP to potentially implement large-scale tax cuts and free-trade initiatives.

  • 📈 Inflation Rises, but Fed Remains Unshaken: Consumer prices ticked up 2.6% annually in October, with airfare, healthcare, and used car costs all rising. Despite the slight increase, inflation appears on a downward trend, supporting the Fed's potential rate cuts in December.

  • 📉 Users Flee X, While Advertisers Consider Return: Post-election, X saw its largest user exodus, with 115,000 accounts deleted in one day, while Bluesky gained popularity as an alternative. Meanwhile, advertisers may return to X, viewing the platform as a strategic channel under the Trump administration.

  • 🏙️ NYC Bans Broker Fees for Renters: New York City passed a bill making landlords responsible for broker fees, relieving renters of the costly burden. Previously, tenants paid up to 15% of annual rent upfront, making NYC moves notoriously expensive. The bill has strong support to withstand a potential veto.

  • 🚨 FBI Raids Polymarket CEO's NYC Apartment: The FBI reportedly raided the New York City apartment of Shayne Coplan, founder and CEO of prediction betting platform Polymarket, which rose to prominence during the recent election. The details of the search remain unclear.

  • 🎥 Spotify Doubles Down on Video Podcasts: Spotify announced plans to take on YouTube by ramping up its video podcast offering, beginning with paying creators who meet engagement targets and removing automated ad breaks for premium subscribers.

RESOURCES
The Federal Reserve Resource

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