Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. The company operates Lilly Seaport Innovation Center (LSC), a research and development facility in the Boston Seaport to advancing Lilly's efforts in RNA and DNA-based therapies as well as discovering new drug targets to create life-changing medicines across several disease states, including diabetes, obesity, cardiovascular diseases, neurodegeneration, and chronic pain. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.

Eli Lilly’s fundamentals remain very strong in terms of business quality, but the valuation is already noticeably ahead of the sector across almost all key multiples. P/E, P/S, P/B, and P/FCF are significantly above the sector median, which points to high market expectations and limits the potential for further upside without a new acceleration in growth. At the same time, profitability is truly outstanding: ROE, ROA, ROI, net profit margin, and operating margin are at very high levels and generally improving compared with earlier periods. Revenue, gross profit, EBITDA, operating profit, and net income are growing, confirming a strong operating trend and the company’s ability to monetize demand. Gross margin remains very high and stable, which supports the resilience of the model even amid substantial growth investment. On the other hand, leverage is above the sector median, and long-term debt and total liabilities have increased noticeably, which adds risk to the valuation. Liquidity looks acceptable, but the current ratio and quick ratio are below industry benchmarks, so the margin of safety in working capital does not look excessive. Dividend yield is low and has been declining in recent periods, so the dividend factor provides little support for the investment case. Equity and assets are growing, which is positive, but this does not fully offset the valuation premium. Overall, the picture for an investor is this: the business is very high quality and growing rapidly, but the current share price already reflects a significant part of these advantages. Therefore, it is reasonable to maintain a cautious, slightly bearish view on the target price until there is a new acceleration in revenue growth or a more noticeable improvement in the balance sheet.

Eli Lilly and Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок на стороне быков.

Weak index, significantly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

Strong revenue and profit growth alongside very high valuation multiples and rising debt: the business quality is excellent, but the valuation already looks stretched.

Key Points
Warren Buffett has expressed concern about the current environment, noting that some investors are engaging in risky behavior.
Even if the market is poised to decline, certain companies have what it takes to excel over time.
Warren Buffett has delivered warnings to Wall Street in recent years as the S&P 500 soared to new highs. In some cases, the warning came in the form of an increasing cash pile. For more than a dozen quarters, Buffett, at the helm of Berkshire Hathaway, was a net seller of stocks.
Today, Buffett is in retirement, so he no longer holds the role of Berkshire Hathaway chief executive officer. But he is the chairman emeritus and still participates in investment discussions. And he is also clearly present at shareholder meetings and speaks openly about investing, as he's done throughout his career. During the latest meeting, in May, he delivered his bluntest warning yet.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
"We've never had people in a more gambling mood than now," he told CNBC during an interview. Buffett referred to individuals rushing into short-term options and betting on markets rather than focusing on long-term investing. This behavior is risky for those taking part in it, and it may represent a risk for the market as well, leading to an eventual drop.
Now here are two bits of good news. First, the S&P 500 and quality stocks have always recovered after market turmoil. And second, certain stocks are built to survive troubled times. The pharma and biotech industries are a great place to look for such companies since patients always need their treatments, regardless of the economic backdrop. Here are three top stocks to consider.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the global leader in cystic fibrosis (CF) treatment, and this business has helped the company generate billion-dollar revenue over time. The biotech's strong intellectual property translates into leadership here through at least the late 2030s. Vertex makes CFTR modulators, or treatments designed to correct the malfunctioning protein that causes symptoms of the disease.
In recent years, Vertex has expanded into other treatment areas, winning approval for a gene editing therapy for blood disorders and a non-opioid drug for pain. And Vertex continues to expand, with the most recent effort being the purchase of Crinetics Pharmaceuticals, a player in the endocrine disorders space. The deal brings a commercialized product and pipeline candidates, and it's expected to add to non-GAAP operating income in 2029.
The combination of Vertex's leading CF business and these recent expansions offers investors stability and potential for growth in any economic environment.
2. Eli Lilly
Eli Lilly (NYSE: LLY) dominates one of the highest-growth pharmaceutical areas around, and that's the weight loss drug market. The company sells tirzepatide, commercialized as Mounjaro for type 2 diabetes and as Zepbound for weight loss. And each of these products is bringing in blockbuster revenue.
In the recent quarter, they generated more than $14 billion on total revenue of $23 billion. We could see additional growth in the coming years as Lilly recently launched its first weight loss pill, Foundayo, and is bringing other promising weight loss candidates through the pipeline.
Meanwhile, Lilly also sells a broad range of other drugs across treatment areas, so it doesn't depend uniquely on the weight loss market for growth. Still, this market, on track to reach nearly $100 billion by then end of the decade, very likely will represent a major growth driver for Lilly for years to come.
3. AbbVie
AbbVie (NYSE: ABBV) is the maker of one of the world's best-selling drugs over time, the immunology drug Humira. The pharma giant lost exclusivity on Humira in recent years and has proven its ability to beat that challenge, thanks to the strength of the rest of its immunology portfolio.
Its newer immunology drugs, Rinvoq and Skyrizi, are growing in the double digits and bringing in blockbuster revenue. In the latest quarter, they delivered 24% growth each to revenue of $2.5 billion and $5.5 billion, respectively.
AbbVie sells other leading drugs across treatment areas, from Botox in the aesthetics portfolio to Vraylar for depression in the neuroscience portfolio.
Investors will also like AbbVie for its status as a Dividend King, having lifted its payments for more than 50 consecutive years. So with AbbVie, investors gain access to reliable revenue and passive income, making it a fantastic stock to own during any market environment.
Should you buy stock in Vertex Pharmaceuticals right now?
Before you buy stock in Vertex Pharmaceuticals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertex Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 19, 2026.
Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends AbbVie, Berkshire Hathaway, Eli Lilly, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

Warren Buffett's Bluntest Warning Yet -- and 3 Stocks Built to Survive It

Key Points
Novo has experienced several setbacks, especially in its core therapeutic area.
The company boasts some exciting pipeline candidates that could help it bounce back.
Novo could be an intriguing play for long-term investors at current levels.
It's been a rough past two years for Novo (NYSE: NVO). The healthcare giant has lost market share in the GLP-1 industry, leading to a more than 60% drop in its share price. Novo is now trading at 11.8x forward earnings, well below the 18.6x average for healthcare stocks. Is Novo far too cheap to ignore at current levels? Or is it a value trap? Let's find out.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Digging deeper into Novo's troubles
Novo generates the lion's share of its revenue from its GLP-1 products, particularly Wegovy, a weight-loss medicine, and Ozempic, a diabetes drug. Competition from Eli Lilly (NYSE: LLY) has led to declining sales growth for both products. But that's only part of the story. Another issue is that Novo has experienced several clinical setbacks, prompting many investors to question whether it can remain a leader in the GLP-1 space.
For instance, the company's CagriSema, although highly effective, fell short of management's 25% mean weight-loss target in a Phase 3 study. Also, CagriSema lost to Eli Lilly's Zepbound in a head-to-head weight-loss clinical trial. CagriSema could earn approval by the end of the year, but based on clinical trial data, it may not allow Novo to close the gap with Eli Lilly.
Further, Novo has also experienced setbacks outside of its core area of expertise. For instance, the company's ziltivekimab failed to show significant efficacy in a Phase 3 clinical trial targeting risk reduction of major adverse cardiovascular events in patients with atherosclerotic cardiovascular disease, chronic kidney disease, and inflammation.
This setback dealt a blow to Novo's efforts to diversify its pipeline. Some analysts projected that ziltivekimab could achieve peak revenue of about $3 billion, and in fairness, the medicine is undergoing studies in other indications. Still, it was yet another letdown for a company that is desperate for wins. Meanwhile, Novo's financial results have been mediocre.
In the second quarter, the company's net sales increased by just 2% year over year to 78.5 billion Danish kroner (about $11.8 billion), while its adjusted earnings per share came in at 6.18 DKK (about $0.93), 5% higher than the prior-year quarter.
The path forward
There has been one area where Novo has made good progress: The oral weight loss market. In January, the company launched the Wegovy pill, the first oral GLP-1 medicine approved for weight loss. Oral Wegovy has helped the company expand its addressable market. As it pointed out, as of June, more than three million prescriptions had been filled in the U.S., and more than 80% of them were for people who had never taken GLP-1s before.
Oral Wegovy won't be enough to allow the company to bounce back, though. Novo will have to develop new products. The good news is that the Denmark-based pharmaceutical giant boasts several exciting candidates. One of them is called zenagamtide. It is currently undergoing Phase 3 studies for weight loss. There are at least two things to note about this investigational medicine. First, it mimics the action of two gut hormones: GLP-1 and amylin.
Novo hopes that the dual-hormone pathway approach will yield greater efficacy. Second, and relatedly, zenagamtide has already posted very promising clinical trial results. In a Phase 1b/2a study, it resulted in a mean weight loss of up to 24.3% over 36 weeks. If it can deliver similarly strong results over longer periods in Phase 3 studies, it could eventually become a leader in the weight-loss market and help Novo improve its position in the industry. Novo has several other promising pipeline candidates, including some triple agonists (medicines that mimic the actions of three gut hormones).
The healthcare company is also pursuing diversification efforts, with several products in Phase 2 and Phase 3 studies. Novo's pipeline is deep, and even though it's important to recognize that some of its advanced programs might fail, my view is that the market has already partially factored this into the share price after recent clinical setbacks. Novo's outlook remains somewhat uncertain, but at current levels, it could gain substantial market value over the next five years, provided it can expand its approved portfolio.
Is Novo the buying opportunity of the decade? Not really. There's too much uncertainty for that to be the case. But at current levels, it could deliver solid returns over the medium term.
Should you buy stock in Novo Nordisk right now?
Before you buy stock in Novo Nordisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 18, 2026.
Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool has a disclosure policy.

Novo Trades at Less Than 12 Times Earnings. Is This the Buying Opportunity of the Decade?

Key Points
Cathie Wood owns Beam shares worth roughly $220 million, at the stock's current price.
All of the company's revenue is collaboration revenue.
Beam has a deep pipeline of early-stage gene-editing therapies.
Cathie Wood, the CEO and founder of Ark Investment Management, owns, through her various Ark ETFs, $220.4 million in Beam Therapeutics (NASDAQ: BEAM) shares. It is a healthcare company that focuses on gene editing to develop precision medicines.
She has owned shares in Beam through her various Ark Technology ETFs for more than five years. On Oct. 12 and Oct. 13, she spent an additional $2.8 million on Beam shares for her Ark Genomic Revolution (NYSEMKT: ARKG) fund. .
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The company is a long way from profitability, but thanks to its potential, it is a worthwhile biotech stock to buy if you're willing to handle some volatility and risk.
The stock is down more than 14% this year. Here are three reasons to buy the stock whenever it dips.
Beam has a distinct gene-editing technique
Unlike first-generation CRISPR-Cas9 technologies, which cause double-stranded DNA breaks and carry risk for unintended chromosomal rearrangements, Beam specializes in base editing. This technology allows precise, single-letter chemical edits to the genome without cutting both DNA strands.
The technology precisely changes a specific nucleotide, or letter, in the genetic code. This enables potentially safer, more precise, and highly repeatable therapies, placing Beam at the forefront of the next wave in genomic medicine.
The company recently filed a lawsuit against Serapha Bio and its Chinese partner, YolTech Therapeutics, alleging the companies, with the assistance of a former Beam employee, developed an experimental alpha-1 antitrypsin deficiency (AATD) treatment using stolen trade secrets from Beam.
It has a deep clinical pipeline
Beam's therapies are still in early trials, but it has eight in its pipeline, giving it better odds of developing a blockbuster product. The pipeline focuses on high-value disease areas such as sickle cell disease (SCD), AATD, and other blood disorders.
The company's lead therapy is ristoglogene autogetemcel (risto-cel), which is in early trials. It is an investigational autologous therapy for the treatment of severe SCD. And it's an ex vivo cell therapy using base editing to genetically modify a patient's own hematopoietic stem cells to produce fetal hemoglobin and suppress sickling.
A large cash runway and tier-1 strategic partnerships
Biotech stocks on a pullback often carry solvency risk, but Beam maintains a relatively strong balance sheet. Backed by major pharmaceutical collaborations, including partnerships with Pfizer and Eli Lilly, and a solid cash buffer, Beam has a clear runway to fund its core clinical trials through key milestones without immediate pressure to pursue dilutive emergency capital raises.
As of the second quarter, the company reported having $1.15 billion in cash, enough, it said, to support operations through mid-2029.
Risk, but with ample reward potential
Beam reported only $32.2 million in revenue through its first six months, though that was up 50.5% year over year. It reported a $2.09 loss per share, an improvement from a $2.12 loss in the same period a year ago.
As its programs advance through phase 1/2 clinical trials, the next 12 to 18 months carry dense regulatory and clinical data readouts. If the company can show positive data on the trial readouts, that would likely significantly boost the stock.
Should you buy stock in Beam Therapeutics right now?
Before you buy stock in Beam Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Beam Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 17, 2026.
James Halley has positions in Pfizer. The Motley Fool has positions in and recommends Beam Therapeutics, Eli Lilly, and Pfizer. The Motley Fool has a disclosure policy.

Cathie Wood Keeps Buying Beam Therapeutics on the Dip. Should You Follow Her Lead?

FDA Drug Approvals In September 2026

The S&P 500 Index ($SPX) (SPY) closed up by +0.33% on Thursday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.05%. December E-mini S&P futures (ESZ26) rose +0.28%, and December E-mini Nasdaq futures (NQZ26) fell -0.14%.
Stock indexes settled mixed on Thursday, with the Nasdaq 100 dropping to a 3.5-week low. Stocks recovered from early losses on Thursday to trade mixed as bond yields fell and as investors rotated out of chip stocks into software and pharmaceutical companies.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
The Nasdaq 100 was under pressure on Thursday amid concerns about the sustainability of the artificial intelligence trade. This week’s rout in chipmakers and AI-infrastructure stocks spread globally, with South Korea’s Kospi Index sinking more than 7% and China’s Shanghai Composite falling to a 14-month low. Thursday’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
Stocks were also pressured on Thursday on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news on Thursday was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, Thursday’s slump in global equity markets sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low on Thursday of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support Thursday after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Thursday’s close, 38 of the S&P 500 companies have reported results, with 82% beating estimates.
Nov WTI crude oil prices (CLX26) rallied more than +3% on Thursday to a 3-week high. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. Crude prices raced to their high Thursday after weekly EIA crude inventories unexpectedly fell by -8.56 million bbl.
Markets are discounting a 27% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled lower on Thursday. The Euro Stoxx 50 closed down -0.36%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +21 ticks on Thursday. The 10-year T-note yield fell -10.0 bp to 5.085%. Dec T-notes rallied to a 3-week high on Thursday, and the 10-year T-note yield fell to a 3-week low of 5.035%. Lower inflation expectations were supportive of T-notes after the 10-year breakeven inflation rate fell to a 1-week low of 2.320% on Thursday. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news on Thursday was bearish for T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields moved lower on Thursday. The 10-year German bund yield fell to a 5-week low of 3.353% and finished down -5.3 bp to 3.413%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and finished down -5.0 bp to 5.374%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting a 9% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks rallied on Thursday as investors rotate out of chip stocks into software. Intuit (INTU) and ServiceNow (NOW) closed up more than +6%, and Atlassian (TEAM) and Autodesk (ADSK) closed up more than +5%. Also, Workday (WDAY), Salesforce (CRM), and Adobe Systems (ADBE) closed up more than +4%, Oracle (ORCL) closed up more than +3%, and Thomson Reuters (TRI) closed up more than +2%.
Pharmaceutical stocks moved higher on Thursday amid stock rotation out of AI stocks. Alnylam Pharmaceuticals (ALNY) closed up more than +4%, and Eli Lilly (LLY) and Ionis Pharmaceuticals (IONS) closed up more than +3%. Also, Gilead Sciences (GILD), Vertex Pharmaceuticals (VRTX), Regeneron Pharmaceuticals (REGN), and Jazz Pharma Plc (JAZZ) closed up more than +2%. and Amgen (AMGN) and Biogen (BIIB) closed up more than +1%.
Cryptocurrency-exposed stocks rallied on Thursday after Bitcoin (^BTCUSD) rebounded from a 3.5-week low and moved higher. Circle Internet Group (CRCL) closed up more than +9%, and Coinbase Global (COIN) closed up more than +6%. Also, Strategy (MSTR) closed up more than +5%, and Bullish (BLSH) and BitMine Immersion Technologies (BMNR) closed up more than +4%. In addition, Riot Platforms (RIOT) and Robinhood Markets (HOOD) closed up more than +2%, and MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed up more than +1%.
Chipmakers and AI-infrastructure stocks fell on Thursday on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. Applied Materials (APLD), Lam Research (LRCX), and Seagate Technology Holdings Plc (STX) closed down more than -3%, and Intel (INTC), KLA Corp (KLAC) and Western Digital (WDC) closed down more than -2%. In addition, Nvidia (NVDA), Advanced Micro Devices (AMD), Marvell Technology (MRVL), and SanDisk (SNDK) closed down more than -1%.
Penske Automotive Group (PAG) closed up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) closed up more than +6% after the Financial Times reported that private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Kimberly-Clark (KMB) closed up more than +4% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
FMC Corp (FMC) closed down more than -30% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Hewlett Packard Enterprise (HPE) closed down more than -7% to lead losers in the S&P 500, adding to Wednesday’s -7 decline, and Dell Technologies (DELL) closed down more than -6%, adding to Wednesday’s 10% plunge after Barclays downgraded the stocks to equal weight from overweight.
Rocket Lab (RKLB) closed down more than -6% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Earnings Reports (10/16/2026)
Citizens Financial Group Inc (CFG), M&T Bank Corp (MTB), Regions Financial Corp (RF), Travelers Cos Inc/The (TRV), Truist Financial Corp (TFC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Settle Mixed as Broader Market Recovers from Chip Stock Rout

The S&P 500 Index ($SPX) (SPY) is down by -0.57% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.30%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.71%. December E-mini S&P futures (ESZ26) are down -0.58%, and December E-mini Nasdaq futures (NQZ26) are down -1.54%.
Stock indexes are mostly lower today, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 3.5-week low. The broader market is under pressure today as the rout in chipmakers and AI-infrastructure stocks spreads globally, with South Korea’s Kospi Index sinking more than -7% and China’s Shanghai Composite falling to a 14-month low. Today’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks extended their losses today on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news today was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, the slump in global equity markets has sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low today of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%. Also, investors rotating out of chip stocks into software companies and defensive pharmaceuticals stocks are lifting the Dow Jones Industrials.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support today after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 32 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) are up +0.20% today. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. However, today’s selloff in global equity markets is curbing demand for risk assets, including crude.
Markets are discounting a 29% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.62%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +23 ticks today. The 10-year T-note yield is down -12.5 bp to 5.060%. Dec T-notes rallied to a 3-week high today, and the 10-year T-note yield fell to a 3-week low of 5.041%. Today’s selloff in global equity markets has boosted safe-haven demand for T-notes. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news is limiting gains in T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields are moving lower today. The 10-year German bund yield fell to a 5-week low of 3.353% and is down -10.7 bp to 3.359%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and is down -11.3 bp to 5.312%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting an 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-month low. SanDisk (SNDK) and Seagate Technology Holdings Plc (STX) are down more than -7%, and Intel (INTC), Lam Research (LRCX), and Western Digital (WDC) are down more than -6%. Also, Advanced Micro Devices (AMD), Applied Materials (APLD), and Marvell Technology (MRVL) are down more than -5%, and KLA Corp (KLAC) and Micron Technology (MU) are down more than -4%.
Cryptocurrency-exposed stocks are falling today, with Bitcoin (^BTCUSD) down more than -2% at a 3.5-week low. Iren Ltd (IREN) is down more than -10%, and Galaxy Digital Holdings (GLXY) and Riot Platforms (RIOT) are down more than -8%. Also, MARA Holdings (MARA) and BitMine Immersion Technologies (BMNR) are down more than -6%, and Robinhood Markets (HOOD) and Strategy (MSTR) are down more than -5%. In addition, Coinbase Global (COIN) is down more than -3%, and Circle Internet Group (CRCL) and Bullish (BLSH) are down more than -2%.
Cloud infrastructure stocks are under pressure today on debt concerns after credit-default swaps have priced in a more than 50% chance that CoreWeave could default on its debt within the next five years. Nebius Group NV (NBIS) and Lumentum Holdings (LITE) are down more than -8%, and CoreWeave (CRWV) is down more than -6%. Also, Arista Networks (ANET) and Applied Digital (APLD) are down more than -5%.
Software stocks are climbing today as investors rotate out of chip stocks into software. Intuit (INTU) is up more than +5% to lead gainers in the Nasdaq 100, and Autodesk (ADSK) is up more than +4%. Also, Workday (WDAY) and Adobe Systems (ADBE) are up more than +3%, and Salesforce (CRM) and Thomson Reuters (TRI) are up more than +2%. In addition, IBM (IBM) and ServiceNow (NOW) are up more than +1%.
Defensive pharmaceutical stocks are climbing today amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), and Vertex Pharmaceuticals (VRTX) are up more than +3%, and Biogen (BIIB), Merck & Co (MRK), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) are up more than +2%. Also, Pfizer (PFE) is up more than +1%.
FMC Corp (FMC) is down more than -34% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Rocket Lab (RKLB) is down more than -13% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Penske Automotive Group (PAG) is up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) is up more than +5% to lead gainers in the S&P 500 after the Financial Times reported private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Walmart (WMT) is up more than +3% after Deutsche Bank upgraded the stock to buy from hold with a price target of $136.
Kimberly-Clark (KMB) is up more than +3% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
Commercial Metals (CMC) is up more than +2% after reporting Q4 net sales of $2.66 billion, better than the consensus of $2.54 billion.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Pressured as Chipmaker Selloff Deepens

The S&P 500 Index ($SPX) (SPY) closed down by -1.11% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.02%. December E-mini S&P futures (ESZ26) fell -1.16%, and December E-mini Nasdaq futures (NQZ26) fell -2.10%.
Stock indexes sold off sharply on Wednesday, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 3.5-week low. Inflation woes dampened market sentiment and sparked stock liquidation on Wednesday after US September consumer prices rose more than expected, reinforcing speculation that the Fed will keep interest rates higher for longer amid sticky price pressures. The chance of a 25 bp Fed rate hike at this month’s FOMC meeting rose to 37% from 22% before the CPI report. Also, the rout in chipmakers continued Wednesday, weighing on the overall market.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Wednesday’s broader market slump sparked defensive buying of health care and pharmaceutical stocks, limiting losses in the Dow Jones industrials.
US Sep CPI rose +3.7% y/y, stronger than expectations of +3.6% y/y. Sep core CPI rose +2.6% y/y, stronger than expectations of 2.5% y/y.
The Fed Beige Book was hawkish, noting that a majority of the twelve Fed districts in the six weeks through October 5 reported economic growth, and half saw robust or intensifying price pressures.
Stocks and bonds garnered some support Wednesday on comments from Fed Vice Chair Michelle Bowman, who signaled she favors keeping Fed policy steady at this month's FOMC meeting when she said, "We have some time to wait and see how financial conditions and the economy evolve before we decide that we need to take any more action" on interest rates.
US MBA mortgage applications fell -2.7% in the week ended October 9, with the purchase mortgage sub-index down -4.0% and the refinancing mortgage sub-index down -0.4%. The average 30-year fixed-rate mortgage rose +1 bp to a 2.75-year high of 7.50% from 7.49% the prior week.
China's trade news was better than expected, supporting global growth prospects. China's Sep exports rose +36.3% y/y, stronger than expectations of +25.7% y/y and the most in 7 months. Sep imports rose +31.0% y/y, stronger than expectations of +25.0% y/y.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.
Nov WTI crude oil prices (CLX26) closed up more than +1% on Wednesday as Yemen's Houthi rebels launched multiple drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed up +0.38%. China's Shanghai Composite closed down -0.89%. Japan's Nikkei-225 Stock Average closed down -0.05%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +4.5 ticks on Wednesday. The 10-year T-note yield fell -2.5 bp to 5.183%. T-note prices recovered from early losses on Wednesday and settled higher as a slump in equity markets fueled short-covering in T-notes. Also, dovish comments on Wednesday from Fed Vice Chair Bowman were bullish for T-notes when said she sees no urgent need for the Fed to raise interest rates.
T-notes initially retreated on Wednesday on the stronger-than-expected US Sep CPI report, which boosted the chance of a Fed rate hike later this month to 37% from 22% before the report. Also, Wednesday’s +1% increase in WTI crude oil has raised inflation expectations and is bearish for T-notes. In addition, the Fed Beige Book was negative for T-notes, noting intensifying price pressures in more than half of the Fed’s districts.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -0.3 bp to 3.466%. The 10-year UK gilt yield fell -2.3 bp to 5.424%.
The German Sep wholesale price index rose +8.7% y/y from +6.8% y/y in Aug, the strongest pace of increase in nearly 3.5 years.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off Wednesday, weighing on the overall market. The iShares Semiconductor ETF (SOXX) fell to a 3.5-week low and closed down more than -4%. CoreWeave closed down more than -15% to lead losers in the Nasdaq 100, and Lumentum Holdings (LITE) closed down more than -8%. Also, Marvell Technology (MRVL) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -6%. In addition, Advanced Micro Devices (AMD) and SanDisk (SNDK) closed down more than -5%, and Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), Intel (INTC), and Western Digital (WDC) closed down more than -4%.
The Magnificent Seven technology stocks fell on Wednesday, weighing on the broader market. Nvidia (NVDA) and Meta Platforms (META) closed down more than -3%, and Tesla (TSLA) closed down more than -2%. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed down more than -1%. Bucking the trend, Apple (AAPL) closed up +0.50%.
Cybersecurity stocks weakened on Wednesday, weighing on the overall market. Cloudflare (NET) and Okta (OKTA) closed down more than -6%, and Palo Alto Networks (PANW) closed down more than -5%. Also, Crowdstrike Holdings (CRWD) and SentinelOne (S) closed down more than -4%, and Fortinet (FTNT) and Zscaler (ZS) closed down more than -3%.
Cryptocurrency-exposed stocks fell on Wednesday after Bitcoin (^BTCUSD) fell more than -1%. Iren Ltd (IREN) closed down more than -12%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -9%. Also, Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) closed down more than -8%, and Circle Internet Group (CRCL), BitMine Immersion Technologies (BMNR), and Strategy (MSTR) closed down more than -5%. On addition, Coinbase Global (COIN) and Bullish (BLSH) closed down more than -4%.
Health insurance stocks moved higher on Wednesday as a defensive play amid the broader market rout. UnitedHealth Group (UNH) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials. Also, CVS Health Corp (CVS), Cardinal Health (CAH), and United Health Services (UHS) closed up more than +3%, and HCA Healthcare (HCA) and the Cigna Group (CI) closed up more than +2%. In addition, Centene (CNC) and Humana (HUM) closed up more than +1%.
Defensive pharmaceutical stocks rallied on Wednesday amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), Merck & Co (MRK), Pfizer (PFE), and Regeneron Pharmaceuticals (REGN) closed up more than +3%, and Vertex Pharmaceuticals (VRTX) closed up more than +2%.
Dell Technologies (DELL) closed down more than -11% to lead losers in the S&P 500 , Hewlett Packard Enterprise (HPE) closed down more than -8%, and NetApp (NTAP) closed down more than -6% after Barclays downgraded the stocks to equal weight from overweight.
Bank of America (BAC) closed down more than -4% after reporting Q3 equities trading revenue ex-DVA of $2.51 billion, weaker than the consensus of $2.63 billion.
State Street (STT) closed down more than -3% after reporting Q3 revenue of $4.00 billion, weaker than the consensus of $4.04 billion.
Progressive (PGR) closed down more than -3% after reporting Q3 net premiums written of $22.30 billion, below the consensus of $22.50 billion.
Liquidia (LQDA) closed up more than +27% after reaching a global settlement resolving all pending litigation with United Therapeutics.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Sharply Lower on Inflation Woes and Slumping Chipmakers

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Lower Ahead of Wednesday’s CPI Report

Key Points
Bristol Myers Squibb offers a significant yield and recovery in net income, supported by its strong oncology and cardiovascular segments.
Eli Lilly & Co. is experiencing massive growth in revenue and profitability, driven by its leadership in the obesity and diabetes treatment markets.
Which pharmaceutical stock deserves a spot in your portfolio?
Healthcare investors often face a choice between steady value and high-octane growth. Choosing between Bristol Myers Squibb (NYSE:BMY) and Eli Lilly & Co. (NYSE:LLY) requires weighing current income against future potential.
Bristol Myers Squibb focuses on specialized medicines for cancer and heart disease, often appealing to value-oriented investors. Eli Lilly & Co. has recently transformed into a growth powerhouse through its leadership in weight-loss and metabolic health. Comparing these two giants helps clarify which path aligns better with your financial goals.
The case for Bristol Myers Squibb
Bristol Myers Squibb is a global biopharmaceutical company that focuses on discovering and delivering medicines for serious conditions, particularly in oncology and immunology. The company distributes its products through wholesalers, distributors, and specialty pharmacies across major global markets including the United States, Europe, and Japan. A December 2025 agreement with the U.S. government regarding drug pricing and supply has already begun to impact its strategy for key medications like Eliquis.
In FY 2025, revenue reached about $48.2 billion, representing a slight decline of roughly 0.2% compared to the prior year. The company reported net income of approximately $7.1 billion and a net margin of roughly 14.6%, demonstrating a significant recovery from its net loss of roughly $8.9 billion in 2024. This performance highlights its established position among pharmaceutical stocks.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 2.6x. This metric measures total debt relative to shareholder equity, while the current ratio of nearly 1.3x compares assets to liabilities due within a year. Free cash flow, or cash from operations minus capital expenditures, is approximately $12.8 billion.
The case for Eli Lilly & Co.
Eli Lilly & Co. develops and markets a wide range of medicines worldwide, with a significant recent emphasis on metabolic health, obesity, and diabetes treatments. The company serves these markets through account managers and major wholesale distributors like McKesson Corp. (NYSE:MCK), Cencora (NYSE:COR), and Cardinal Health (NYSE:CAH). Additionally, the company has expanded its reach through LillyDirect, a digital platform that provides patients with direct access to medicines.
In FY 2025, revenue climbed to around $65.2 billion, which is an increase of approximately 45% over the previous year. Net income for the period reached close to $21 billion, more than doubling the prior year result. This performance resulted in a net margin of roughly 32%, which measures how much profit the company keeps for every dollar of sales generated.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.6x. This ratio measures total debt against shareholder equity, while the current ratio of close to 1.6x indicates the ability to cover short-term obligations using current assets. Free cash flow for the fiscal year ended in December 2025 reached nearly $9.0 billion.
Risk profile comparison
Bristol Myers Squibb faces pricing pressure from the Inflation Reduction Act and reimbursement restrictions. Pipeline risk remains high as the company seeks to replace revenue from drugs losing patent protection. Recent patent litigation includes a revived $6.7 billion lawsuit and challenges with Cytokinetics (NASDAQ:CYTK).
Eli Lilly is subject to global pricing controls that affect major products like Jardiance and Trulicity. Intense competition from generic and biosimilar manufacturers continues to challenge branded revenue growth. Supply chain complexities and a reliance on third-party suppliers also present potential operational risks.
Valuation comparison
Bristol Myers Squibb trades at a much lower multiple of future earnings estimates than its peer, offering a distinct value proposition. The Forward P/E measures price relative to future earnings estimates, while the P/S ratio compares market cap to sales over the past twelve months.
Metric
Bristol-Myers Squibb
Eli Lilly and
Forward P/E
8.2x
33.8x
P/S ratio
2.4x
14.1x
Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Eli Lilly is riding a wave of success with its GLP-1 drugs Zepbound for weight loss and Mounjaro, which is the same drug for diabetes control. There is still plenty of growth left in the treatment, and that is expected to power revenue up more than 30% in 2026, to $88.6 billion, with close to $31.4 billion in net income. Its next weight-loss drug, Retatrutide, is hotly anticipated for its triple-agonist approach, which is expected to exceed the weight-loss results of Zepbound. The company is also targeting less affluent customers with a lower-cost GLP pill called Foundayo, which it sells directly to consumers.
Besides GLP-1s, Lilly is working on a small interfering RNA therapeutic targeting lipoprotein(a) for the prevention of atherosclerotic cardiovascular disease in patients with elevated lipoprotein(a) levels. Analysts believe it will be a blockbuster ($1 billion or more in lifetime revenue) if approved.
Bristol Myers Squibb has made positive strides, with its newer growth brands gaining traction and some interesting candidates in the pipeline. The stock is cheap, and that seems to be for good reason. Investors have already priced in much of the upcoming difficulty, which softens the downside but does not make it an obvious buy right now. Bristol Myers Squibb's recovery timeline is hard to predict.
Revenue for the current fiscal year should edge up 3% to $49.9 billion, with a much healthier rise in net income of more than 40% to $11.2 billion.
Bristol Myers has an attractively low forward price-to-earnings and sales ratios, but of course, that reflects some continued rough sailing ahead.
The choice between these two is simple: Eli Lilly has made itself the leader in GLP-1 treatments, and it appears to have a long runway ahead of it in that sector. Bristol Myers has potential, but in this case it's worth paying the premium to grab hold of Lilly's fast growth.
Should you buy stock in Bristol Myers Squibb right now?
Before you buy stock in Bristol Myers Squibb, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristol Myers Squibb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb, Cytokinetics, and Eli Lilly. The Motley Fool recommends McKesson. The Motley Fool has a disclosure policy.

Bristol Myers Squibb vs. Eli Lilly: Which Healthcare Stock Is a Better Buy in 2026?

Key Points
Stock splits are discretionary and aren't a guarantee, even if the stock price soars well over $1,000.
Eli Lilly has not done a stock split in nearly 30 years.
The stock remains a good long-term buy based on its fundamentals.
When stocks start trading north of the $1,000 mark, investors often wonder if a stock split may be coming. A stock split reduces the price of a stock, making it easier for investors to buy without having to purchase fractional shares, which aren't available on all platforms and for all types of stocks.
Healthcare giant Eli Lilly (NYSE:LLY) has a share price that's comfortably above $1,000, and these days is closer to the $1,200 mark. It's been a tremendous growth stock over the years, and its valuation is north of $1 trillion. A great way to cap off its impressive growth might be with a stock split before the end of the year. But here's why I don’t think that will happen.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
The company last did a stock split in 1997
There are some companies that love to do stock splits, while others aren't nearly as keen. It's been 29 years since Eli Lilly last did a stock split, when it did a 2-for-1 split back in 1997. That was the fourth split in its history; the others took place in 1995, 1989, and 1986. For a while there, Eli Lilly seemed to love stock splits.
However, stock splits are discretionary. Management may not choose to undertake them, even if the stock price becomes incredibly high. Eli Lilly could easily do a 10-for-1 split today, and its share price would still be above $100. It hit the $1,000 mark last year, and CEO David A. Ricks, who has been at the helm since 2017, hasn't announced a stock split. If a split was going to happen, I believe it would have taken place by now.
Eli Lilly is a solid stock to own for the long haul, regardless of whether it does a stock split
A stock split doesn't make investors any richer. They will own more shares, but the average share price will also go down; the investment value will remain unchanged.
The good news, however, is that for investors who are willing to hang on to Eli Lilly stock for the long term, it can still be a solid buy today. It's a dominant company in the anti-obesity drug market, and its broad business can ensure it continues growing for the foreseeable future.
Although it may not be a cheap stock to own right now, it can be a solid growth investment to hang on to for years. Plus, it can generate a lot of dividend income as it has aggressively raised its payouts in recent years. Eli Lilly is the type of growth stock that investors can buy and forget about.
Should you buy stock in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.