Why Eli Lilly shares should be higher — plus, our wishlist for Nike
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s highlights. 1. The stock market is up on Thursday as the November consumer price index report came in colder than expected. Inflation rose 2.7% compared to Dow Jones estimates of 3.1%. Micron helped boost AI business, surging 11 percent after earnings fell. “People say what’s good for Micron might be good for the complex,” but that’s not true, Jim said. Elsewhere, The Information reported that OpenAI is in talks to raise new funding at a valuation of around $750 billion. “If they get $750 billion and we slow down data creation, everyone wins,” Jim said. “This is a dream come true.” 2. Shares of Eli Lilly rose nearly 2% after the drugmaker announced positive results from a Phase 3 study for its oral GLP-1 drug called Orforglipron. “The market seems to be quiet on this,” Jim said. He argued that the stock should be higher, especially after Eli Lilly recently signed a deal at the White House to lower GLP-1 drug costs for Medicare and Medicaid patients. The study evaluated Lilly’s oral pill for weight maintenance for 52 weeks following 72 weeks of treatment with the highest dose of Wegovy or Zepound injections. The results showed that participants maintained their weight loss after treatment, addressing a key concern about obesity medications. The company announced today that it has submitted Orforglipron to the U.S. Food and Drug Administration for the treatment of obesity. 3. Nike shares are on the rise ahead of the company’s after-hours quarterly earnings report. Street analysts are essentially forecasting a solid quarter, but with cautious guidance. Nike needs to show continued progress as investors will focus on inventory clearance. Jeff Marks, the club’s director of portfolio analysis, said that once this issue is resolved, Nike “could return to full price and gross margins could increase.” The Street will also watch wholesale channel sales and updates on China’s recovery efforts. Jim also pointed out that the company still has work to do in terms of innovation because “they don’t have enough innovation yet.” 4. At the end of the video, the stocks covered in Thursday’s rapid fire were: Darden Restaurants, Lululemon, Sherwin-Williams, Shake Shack and Merck. (Jim Cramer’s Charitable Trust is long LLY and NKE. See here for a full list of stocks.) 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.
