The Rundown - NYCB Gets $1B Lifeline, Novo Nordisk Touts Weight Loss Trial Results

Episode Date: March 7, 2024

Stock market update for March 7, 2024. New York Community Bancorp to Get More Than $1 Billion Investment (WSJ) Novo Nordisk shares jump 7% on promising weight loss trial results; Eli Lilly dips (CNBC) Victoria’s Secret shares plummet on weaker sales forecast, amid subdued apparel demand (MarketWatch) Hugo Boss plunges 18% on pessimistic sales outlook in worst day since 2016 (CNBC) Tesla is not one of the 10 largest U.S. companies for first time in 13 months (MarketWatch) 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. My name is Aed Admani, and today is Thursday, March 7th. In today's episode, we're going to discuss Jerome Powell's visit to Capitol Hill and how his comments sparked a nice bounce back in the stock market. We also recop the drama surrounding New York Community Bank. They just got injected with $1 billion in cash that might have saved them. And finally, we go over some stocks making moves today.

Like the maker of a Zempik, whose stock is up because they might have discovered a weight-lost drug that works better than OZempe. And stick around to the end of the show for a not-so-fun fact about Tesla. Actually, Tesla investors might want to skip that part. All right, let's get into it. Let's start with the quick recap of the stock market on Wednesday. Stocks had a decent bounceback. After two straight days of stocks going down, we finally saw some green yesterday.

The Dow, S&P, and NASDAQ all finished higher, likely off the backs of comments made by Fed chair Jerome Powell. Remember, he's testifying in front of Congress this week. In his testimony in front of the House on Wednesday, Jerome Powell said, the Fed is on track to cut interest rates this year. That's the good news. Unfortunately, Jerome Powell didn't tell us at what point this year they were going to do that. He said the Fed won't cut rates until they are sure that inflation is headed towards the Fed's 2% target. And according to the latest inflation data, we're still hovering around the 3% range. But look, what Jerome Powell said isn't really breaking news, you know?

Powell has been saying this for months now. And I think investors were just kind of relieved that Jerome Powell didn't really say anything to rock the boat, you know, drop some sort of bombshell announcement or something, it was just kind of more of the same. By the way, Jay Powell is back on Capitol Hill today testifying in front of the Senate, so we might get another wild day in the stock market. Now, even though stocks had a nice bounce back on Wednesday, all three major indices are still down for the week. But hey, we still got today and tomorrow for stocks to squeeze out another weekly game. Remember, stocks have gone up for 16 of the last 18 weeks.

So they've been on a bit of a hot street. Let's talk about New York Community Bank. There's been a lot of drama surrounding this regional bank over the last couple months. The company has been struggling with operational issues, executive turnover, and credit downgrades over the last couple months. Earlier this week, the company said that they had material weakness and internal controls related to their loan reviews. And there are some people concerned that this bank might actually go under. Well, the bank just raised $1 billion from several investment firms, one of them being former Treasury Secretary Stephen Mnuchin. Now, as part of this deal, Mnuchin's going to join the bank's board of directors.

And the company will get a new CEO. Now, this $1 billion cash infusion did put some investors at ease. Yesterday, New York Community Bank stock was down more than 40%. But as soon as this announcement came out, the stock jumped more than 100%. Now, this doesn't mean the bank's fully out of the woods. The new CEO has a lot of stuff to do to turn around this bank, but at least they have a runway to do it now. New York Community Bank stock is still down more than 60% for the year. Let's talk about some stocks making moves today.

Starting with Nova Nordus. Shares for Nova Nordus are up more than 5% in pre-market trading after early clinical trials show that their new weight loss drug is more effective than OZemPEC. Remember, Nova Nordisk is the Danish company that makes OZempic and WeGovie. The super popular weight loss drugs that have taken the world by a storm over the last year or so. Well, they're working on something better. A new weight loss drug that comes in pill form that according to early clinical trials is more effective than OZempic. Remember, OZEP and Weegovi are an injection. So this new drug being in pill form could be huge.

Now, it's still really early for this new drug. The company will start phase two trials later this year. It's probably going to take at least a couple more years before this drug hits the market. And that's still a big if. But that didn't stop investors from getting hype. And the stock jumped more than 5% today after this announcement. And Novinaorta's stock is up more than 30% for the year. Now let's talk about a stock not doing so hot today.

Victorious Secrets. The stock for this iconic retailer dropped more than 25% after they reported their Q4 earnings. And honestly, the earnings weren't even that bad. sales and profits and Q4 were up compared to the previous year, and they met Wall Street estimates. But here's what caused the stock to drop. The company reported a weaker-than-expected forecast for the business this year. And the reason for that might be because of inflation. People are spending more money on groceries and other essential items that I guess that means there's less money left over for the lingerie budget.

So yeah, the weak guidance from Victoria's Secrets was enough to freak out investors and stock dropped more than 25%. All right. It's time to wrap up the show with a fun thing. Fact. Today's fun fact is about Tesla. Tesla investors might want to cover the ears for the next 30 seconds because Tesla is no longer a top 10 largest company in the U.S. As of market close on Wednesday, Tesla's market cap dropped to number 11 right behind Visa. Tesla's market cap is now around $560 billion, and this is the first time that Tesla has fallen out of the top 10 in over 13 months. Look, it's been a tough year for Tesla. The stock is down more than 29% this year alone. I think the overall vibe around

the EV space has just been pretty bad over the last few months. Maybe Elon should have really stuck around open AI. All right, guys, and we did it. Another fantastic show. By the way, if you're listening to this on Spotify, be sure to answer the question in the Spotify poll that's attached to this episode. The responses for those polls are always fascinating. Oh, and while you're doing that, hit us with the five stars too.

So, you know, this podcast has climbed the charge just like our portfolios. All right. Thank you guys for listening. We'll see you guys back here tomorrow. This is the rundown. Your real-time resource for news events and trends in the market. All views presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security.

Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com disclosures. In partnership with Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.