Midday Fly By: Big Tech reports, Novo tops Pfizer bid for Metsera

The major averages were mixed near noon as investors digest a mix of Big Tech earnings reports, as well as yesterday’s Federal Reserve rate cut. Tech stocks remain at the center of attention as corporate results pulled sentiment in different directions. Alphabet jumped after reporting stronger-than-expected ad revenue and cloud growth, while Meta stumbled under the weight of a large one-time tax expense and signals of even higher spending on AI. Microsoft slipped as well, with higher-than-expected AI-related costs tempering enthusiasm for its long-term margins.

Meanwhile, President Donald Trump and China’s Xi Jinping announced a preliminary deal covering rare earths, soybeans, and fentanyl-related tariffs. The announcement sparked brief optimism, though details remain murky and Beijing has yet to confirm key elements of the agreement.

Looking to commodities, gold was fractionally higher near noon, with the “safe haven” asset hovering around $4,000 following several tumultuous days. Oil was mostly unchanged near noon.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Microsoft (MSFT) reported better-than-expected Q1 earnings and revenue and provided Q2 revenue guidance
• Meta Platforms (META) reported upbeat Q3 results and provided Q4 revenue guidance, with the company noting it took a Q3 charge of $15.93B for the alternative minimum tax
• Alphabet (GOOGL) reported better-than-expected Q3 results, with CEO Sundar Pichai touting “double-digit growth” across every “major” part of the business
• Starbucks (SBUX) reported mixed Q4 results, while Chipotle (CMG) revised down its FY25 same-store sales growth guidance
• Novo Nordisk (NVO) offered to acquire Metsera (MTSR) for up to $77.75 per share in an attempt to outbid Pfizer (PFE)

2. WALL STREET CALLS:

• Oppenheimer downgraded Meta Platforms (META) to Perform while Benchmark cut shares to Hold until a sensible return case can be made for “thus far runaway capex” spending
• H.C. Wainwright double upgraded Coinbase (COIN) to Buy from Sell
• Deutsche Bank downgraded Boeing (BA) to Hold on reduced free cash estimates
• Warner Bros. Discovery (WBD) upgraded to Buy at Rothschild & Co Redburn
• Verisk Analytics (VRSK) upgraded to Overweight at Barclays

3. AROUND THE WEB:

• Fuzzy Panda Research, in a new note to investors, says it is short Eos Energy (EOSE)
• Former L3 Harris (LHX) Peter Williams pleaded guilty in a U.S. district court to selling eight zero-day exploits to a Russian broker in exchange for millions of dollars in cryptocurrency, Cyberscoop reports
• BlackRock (BLK) and other private credit lenders have accused Bankim Brahmbhatt of fabricating accounts receivable that were supposed to be used as loan collateral, WSJ reports
• California Public Employees’ Retirement System, Calpers, the largest pension plan in the U.S., plans to vote against Elon Musk’s $1T Tesla (TSLA) compensation agreement, Bloomberg says
• Target’s (TGT) planned layoffs of 1,000 corporate employees were marred by a technical glitch during a companywide Zoom (ZM) meeting on Tuesday, Bloomberg says

4. MOVERS:

• Emergent BioSolutions (EBS) and FormFactor (FORM) gain after reporting quarterly results
• Glaukos (GKOS) higher after reporting Q3 results and providing guidance for FY25 and FY26
• Guardant Health (GH) increases after reporting Q3 results and raising its guidance for FY25
• Sprouts Farmers (SFM), Integra (IART), and Apellis (APLS) fall after reporting quarterly results
• FMC (FMC) lower after reporting Q3 results and cutting its guidance for FY25

5. EARNINGS/GUIDANCE:

• Merck (MRK) reported Q3 results and raised its guidance for FY25
• Eli Lilly (LLY) reported Q3 results, with CEO David Ricks commenting, “Lilly delivered another strong quarter”
• Cigna (CI) reported Q3 results and backed its guidance for FY25
• MasterCard (MA) reported Q3 results, with CEO Michael Miebach commenting, “Mastercard delivered another strong quarter”
• eBay (EBAY) reported Q3 results, with EPS and revenue beating consensus

INDEXES:

Near midday, the Dow was up 0.42%, or 199.21, to 47,831.21, the Nasdaq was down 1.13%, or 271.03, to 23,687.44, and the S&P 500 was down 0.49%, or 33.94, to 6,856.65.