The Rundown - Eli Lilly Acquires Bowel Disease Drug Developer for $3.2B, Boeing Pleads Guilty to Felony Charge

Episode Date: July 8, 2024

Stock market update for July 8, 2024. Get started with Public: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Click here⁠⁠⁠⁠⁠⁠⁠⁠⁠���⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.The content of the podcast is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Public.com presents the rundown, your daily market update in five minutes. I'm your host, J.D. Durkin. filling in for Zaid and Mane, today is Monday, July 8th. Happy National Video Game Day to all who celebrate. In today's episode, we'll be updating you on what seems to be at long last, the finale in the chaotic negotiations surrounding the future of Paramount. Plus, Eli Lilly just made a multi-billion dollar acquisition of a drug company that could give it yet another blockbuster treatment to go alongside its weight loss. initiatives. And finally, stick around until the very end of the show to hear what Amazon's original name was when Jeff Bezos first founded the company. All right, last week was a great one for equities across the U.S. stock market, both the S&P and NASDAQ, finished last week on a high note hitting fresh record highs. As we headed into the weekend, the S&P is up 17% for the

year, the NASDAQ up 22% year to date. And believe it or not, somehow earning season is already here again. How did that happen? Q2 earning season set to kick off this week. And since the markets have been ripping so far in 2024, that means investors have high expectations, especially for all those splashy tech companies to all report higher earnings growth. We'll all find out much more in the next few weeks. And this week, we're going to hear from the big banks. J.P. Morgan City, Wells Fargo, as always, they kick things off for earnings season. They're all set to report on Friday. We can't forget big names like Delta Airlines and PepsiCo set to report the next few days as well. And we'll also be getting the June CPI inflation

prints. That's Thursday morning at 830. Current estimates are for a 0.1% month over month increase for the month of June. And as if all that weren't enough, let's not forget Jerome Powell, the chairman of the central bank, he'll be testifying in front of both the House and the Senate this week as well. So should be a fun week, certainly a busy one where I need lots of coffee to get through it. We'll do our best to keep you in the loop on everything you need to know right here on the rundown. Speaking of the rundown, hey, if you're enjoying the show, go ahead and hit us with five stars on Apple and on Spotify. Taking a look now at a few of the top headlines we're following for you on this national video game Monday. First up, Paramount Global and SkyDance Media, the big story of the morning.

Yeah, they finally agreed to a merger deal. My goodness, the finals of the agreement, well, they're pretty complex, so I'll spare you the weedy details here. But the newly combined company is being called New Paramount. It's valued at $28 billion. Paramount, of course, it's credited with classics like The Godfather and Titanic. It's one of the most storied Hollywood film studios of all time, but it has seen its market cap shrink by about 70% since the pandemic because it's struggled to adapt to a rapidly changing media ecosystem that, of course,

has been dominated by the streaming giants. Skydance founder, David Ellison, who is the son of Orrush, co-founder Larry Ellison will become the new chairman and CEO of Paramount. And what finally got the deal across the finish line was a bit of a sweetener. It included an increase of the Redstone family's payout to $1.75 billion and also strengthened legal protections against potential shareholder lawsuits. The deal does come with a go shop clause. It basically means Paramount still has 45 days to find a better offer. However, according to an internal announcement sent by paramount chair Sherry Redstone, who took over the company after the death of her father

Sumner Redstone certainly sounds like a done deal. Another story we're following for you this morning, Boeing set to plead guilty to fraud charges over the 737 Max crashes. The jet maker will have to pay a $243 million fine, bringing the total fine so far to about $487 million. The agreement with the Department of Justice requires the company to invest at least $400,000. $55 million over the next three years into compliance and safety programs and to also work as an independent monitor who will watch over the company's compliance with anti-fraud laws. The safety challenges have dealt a devastating blow to the company's business as orders for the Boeing 737 Max have come to a complete halt. The company has had two consecutive months of zero

sales for its best-selling plane as of May. All right, let's take a look at some of the top stocks making moves today. First up, drug developer Morphic Holding is up more than 75% on news that it will be acquired by Eli Lilly for more than $3 billion. Morphic's lead therapies are for oral treatments targeting inflammatory bowel diseases, ulcerative colitis, and Crohn's disease. The deal has an offer price tag of $57 a share, a 79% premium to Friday's closing price. Last year, Eli Lilly got FDA approval for its own treatment for moderate to severe. active ulcerative colitis and is considered another possible growth driver for the company alongside blockbuster drugs like Munjarro for diabetes and obesity.

Now let's talk about another stock that's on the move today. This is headphone maker COS Corp. That's COS. The stock is honestly just the latest mean stock to catch the attention of speculators and everyone's trying to guess stock trader roaring kitty's next big investment. Shares of the company, which trade under ticker symbol KOSS, are down. more than 10% in pre-market, but gained 230% last week alone. Roaring Kitty, whose real name is Keith Gill, is the influencer behind, of course, the GameStop frenzy, but he hasn't actually posted anything about costs directly. However, many in the Reddit and online trader communities have been betting that a previous

cryptic post of a microphone against the backdrop of an American flag was somehow a sign that Keith Gill was planning to buy shares of costs on the 4th of July. All right, time now to wrap up the show, and let's do so with a fun fact. Amazon, we all know and love Amazon. The company just turned 30 years old on Friday, so happy belated birthday to the folks over at Amazon. But did you know when the company was first founded, it actually wasn't even called Amazon. Jeff Bezos originally called it Cadabra. Cadabra, yeah, you know, like Abercadabra.

But as he might imagine, just reading it, people had trouble pronouncing it. and also Jeff Bezos's lawyer famously misheard it as cadaver. So then thankfully, Bezos changed it to Amazon. I say pretty good call there. All right, folks, that's going to do it for today's edition of The Rundown. Enjoy your national video game day today. And if you like what you heard today here on the show, go ahead and give us five stars.

Thank you each and every one of you for taking the time to listen. We'll see you back here tomorrow on The Rundown, presented by public.com.