Eli Lilly is stockpiling its weight loss pill, plus Nvidia reveals new partners
Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Market update: The market gained momentum after The Wall Street Journal reported that President Donald Trump and Chinese President Xi Jinping will discuss cutting the 20% tariff on chemicals used to produce fentanyl in half at their upcoming meeting. If this happens, the average tariff on most Chinese goods will drop to 45%. More partners for Nvidia: Nvidia makes plenty of headlines at GTC conference in Washington DC One of the notable announcements was a $1 billion investment in Finnish telecom company Nokia. The two companies have formed a strategic partnership to develop next-generation 6G cellular technology. Nvidia is also working with T-Mobile to integrate AI-RAN technologies into 6G development. The world needs a network that can meet all the computing needs of the many AI-based devices and applications expected to be developed in the coming years. That’s why Nvidia’s partnership with telecom providers makes perfect sense. It’s hard to keep track of all the headlines coming out of the event, including the Department of Energy’s collaboration with Oracle to build the largest AI supercomputer for scientific discovery and a partnership with CrowdStrike to create cybersecurity AI agents. Nvidia also said it is partnering with Eli Lilly to build what they call the pharmaceutical industry’s “most powerful” supercomputer to help develop new drugs. CEO Jensen Huang also laid out some rosy numbers about the ramp-up of next-generation AI chip Grace Blackwell over the next five quarters. All the news results in Nvidia shares rising nearly 5% to a new record high. The drugmaker is stepping up: Eli Lilly is stocking oral weight-loss pills. Speaking at an event hosted by the Economic Club of Chicago on Monday, Eli Lilly CEO David Ricks said the company has already produced “billions of doses” of the pill, called orforgliprone, for its expected launch next year. “This will be sort of ‘GLP-1’ for everyone,” Ricks said. Eli Lilly has not yet submitted orforgliprone for FDA approval but is expected to do so before the end of the year. Eli Lilly reports third-quarter earnings before the opening bell on Thursday, and this orforgliprone stock won’t impact the quarter. But it shows a lot of confidence in the upcoming launch, and it’s good to know that the drug won’t experience the same kind of supply bottlenecks that injections (Mounjaro and Zepbound) experienced initially. Next up: Visa, Enphase Energy, ONEOK, Bloom Energy, Booking Holdings, Seagate Technology, Mondelez International and Caesars Entertainment report earnings after the bell. Boeing, Verizon, GE Healthcare, CVS Health, Caterpillar, Otis, Fiserv, Centene, Etsy, Brinker International and American Electric Power will report before the bell on Wednesday. Tomorrow is also Fed day and the Federal Open Markets Committee is expected to cut interest rates by 25 basis points to a range of 3.75% to 4.00%. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
