Stock Indexes Rise After Tech Rout; Palantir Shares Fall Further

Novo Nordisk Is Seeing Slowing Demand for GLP-1s Wegovy and Ozempic

11 minutes ago

U.S.-listed shares of Novo Nordisk (NVO) fell after the drugmaker scaled back its outlook, citing disappointing demand for its GLP-1 weight loss and diabetes drugs as competition in the sector increases.

Novo Nordisk, the company behind Wegovy and Ozempic, posted third-quarter adjusted earnings per share of DK4.50 ($0.69), DK20 ($0.03) below the average estimate of analysts surveyed by Visible Alpha. Revenue was up 5.1% to DK74.98 billion ($11.53 billion), also short of forecasts.

Wegovy sales rose 18% to DK20.35 billion ($3.13 billion), below expectations. Ozempic sales added 3% to DK30.74 billion ($4.73 billion), better than anticipated. 

The company now sees full-year operating profit growth of 4% to 7%, and sales of 8% to 11%. The previous outlook was for operating profit to gain 4% to 20% and sales to advance 8% to 14%. It said the change “reflects lowered growth expectations for Novo Nordisk’s GLP-1 treatments within diabetes and obesity.” It’s the fourth time the company narrowed its guidance this year.

U.S.-listed shares of Novo Nordisk have lost about 46% of their value this year. The shares were recently off about 4%.

–Bill McColl

Private Sector Adds Jobs for the First Time in Three Months

57 minutes ago

With the government shutdown still delaying official data, private measures of the labor market show the job market is still drying up.

U.S. private employers added 42,000 jobs in October, payroll provider ADP said Wednesday. That was more than the 22,000 forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The growth was a rebound after a loss of 29,000 jobs in September, but was slow by historic standards, far below the 221,000 jobs added in October 2024, for instance.

Employers have pulled back on hiring in recent months due to uncertainty about trade policy amid President Donald Trump’s unpredictable campaign of raising tariffs on trading partners. Hiring may also be hindered by companies adopting artificial intelligence, the ripple effects of the government shutdown, and high borrowing costs from the Federal Reserve aimed at combating inflation.

Fed officials cut the central bank’s benchmark interest rate in September and October to boost the job market, and may do so again in December if more reports like Wednesday’s ADP figures come in. The Fed is tasked with a dual mandate from Congress to prevent high unemployment and keep inflation low, and Fed officials have become increasingly worried about the health of the labor market.

“You can blame the trade war, or a host of other factors—AI, earlier restrictive monetary policy, and the government shutdown—but it’s pretty clear that the labor market remains soft,” Sal Guatieri, senior economist at BMO Capital Markets, wrote in a commentary. “This could be the key that unlocks another Fed rate cut in December.”

–Diccon Hyatt

Amgen Stock Leads Dow Gainers After Strong Q3 Results

1 hr 25 min ago

Amgen (AMGN) was the best-performing stock in the Dow Jones Industrial Average on Wednesday morning after the biopharmaceutical firm posted third-quarter results that easily topped analysts’ estimates.

Shares advanced 5.5% in recent trading, a day after the Thousand Oaks, Calif.-based firm reported adjusted earnings of $5.64 per share on sales that rose 12% year-over-year to $9.56 billion. Analysts polled by Visible Alpha had expected $5.02 and $8.96 billion, respectively.

Product sales increased 12%, with volume growth of 14% but a 4% lower net selling price.

“We delivered strong volume growth this quarter, reflecting the demand for our medicines and the impact we’re having on patients worldwide,” CEO Robert Bradway said. “With disciplined investment and a pipeline of first-in-class medicines, we’re focused on expanding access, advancing innovation, and sustaining long-term growth.” 

Amgen shares are up more than 20% this year, roughly double the Dow’s advance.

This Social-Media Stock Is Down 20% Today

1 hr 49 min ago

Shares of Pinterest (PINS) plunged after the visual social media and search company missed profit expectations and gave weak holiday quarter guidance.

The company posted third-quarter adjusted earnings per share of $0.38, three cents below what analysts surveyed by Visible Alpha were looking for. Revenue rose 17% to $1.05 billion, in line with forecasts.

For the current quarter, Pinterest sees revenue in the range of $1.31 billion to $1.34 billion, while Visible Alpha analysts are anticipating $1.34 billion.

The news sent Pinterest shares down 20% in morning trading and into negative territory for the year. Shares of Snap (SNAP) and Meta Platforms (META) made far more muted early moves by comparison.

In the U.S. and Canada, revenue increased 9% to $786 million, and average revenue per user (ARPU) gained 5% to $7.64. Both were below Visible Alpha estimates. Global ARPU of $1.78 was slightly less than expected.

The results and outlook offset strong user growth, with the company setting a record with 600 million monthly active users. 

–Bill McColl

As Childcare Prices Outpace Inflation, More Women Are Dropping Out of The Labor Market

3 hr 29 min ago

With the price of childcare escalating, even faster than rent and college tuition for some families, more mothers are opting out of a job and becoming full-time caregivers for their children.

The cost of daycare increased by 5.2% in September compared to the same period last year, according to a report from Bank of America. That is almost twice as fast as overall inflation, which rose 3% annually in September, according to the Bureau of Labor Statistics.

This year, for the first time since 2021, there was an increase in the number of women who said their family is the reason they are not in the labor force, according to the bank.

Childcare costs are rising so fast that the price for one child is more than a month’s rent for some families, according to a 2024 report from the Department of Labor. Average costs also surpassed the average annual tuition and fees at a four-year public college by nearly $1,800, according to a report from The Conference Board.

Read the full article here.

–Elizabeth Guevara

Axon Enterprises Stock Plummets as Q3 Adjusted Profit Comes Up Well Short of Expectations

4 hr 14 min ago

Taser maker Axon Enterprises’ third-quarter sales jumped 31% year-over-year and topped analysts’ expectations. Its stock is plummeting nevertheless.

Shares of Axon Enterprises (AXON) tanked 18% in premarket trading Wednesday, a day after the Scottsdale, Ariz.-based firm reported an adjusted profit of $1.17, well below the $1.49 consensus estimate of analysts surveyed by Visible Alpha.

Sales of $710.6 million were about $5 million above analysts’ projections. It was the seventh consecutive quarter that the company’s sales grew at least 30% from the prior-year period.

Axon Enterprises also announced it had agreed to acquire emergency communications firm Carbyne for $625 million, a deal it expects to close in the first quarter of 2026.

Axon Enterprises shares entered Wednesday up about 19% this year.

Stock Futures Point Lower as AI Bubble Concerns Continue

5 hr 3 min ago

Futures contracts connected to the Dow Jones Industrial Average were down 0.1%.

S&P 500 futures slipped 0.3%.

Nasdaq 100 futures pulled back 0.4%.