Tag Archives: Eli Lilly and Co

What increasing hope for Biogen Alzheimer’s drug means for Eli Lilly

A pedestrian walks past Biogen Inc. headquarters in Cambridge, Massachusetts, on Monday, June 7, 2021.

Adam Glanzman | Bloomberg | Getty Images

Wall Street increasingly believes U.S. drug regulators will approve Biogen’s (BIIB) latest experimental Alzheimer’s treatment following the release of detailed late-stage clinical trial data. It’s a development that may carry positive implications for Eli Lilly (LLY) because the Club holding is investigating a similar drug targeting the disease.

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Abiomed, Uber, SoFi, Pfizer and more

Take a look at some of the biggest movers in the premarket:

Abiomed (ABMD) – Abiomed stock soared 51.6% in premarket trading after agreeing to be acquired by Johnson & Johnson (JNJ) in a nearly $16.6 billion deal. J&J will pay $380 per share for the maker of heart, lung and kidney treatments, and will add a contingent value right worth up to $35 per share if certain milestones are achieved. J&J shares fell 0.7%.

Uber Technologies (UBER) – Uber rallied 8.8% in the premarket after it reported better-than-expected quarterly revenue as gross bookings surged compared to a year ago. Uber did report a quarterly loss, but that was largely due to unrealized losses on equity investments such as its stake in Didi Global.

SoFi Technologies (SOFI) – SoFi surged 14.3% in premarket trading, following a smaller-than-expected quarterly loss and revenue that exceeded analysts’ forecasts. The fintech company also lifted its outlook after adding nearly 424,000 new members during the quarter, bringing its total to more than 4.7 million.

Pfizer (PFE) – Pfizer jumped 4% in premarket trading following a better-than-expected quarter and an improved financial outlook. Strong demand for Pfizer’s older drugs helped offset a drop in sales of its Covid-19-related products.

Goodyear Tire (GT) – Goodyear tumbled 8.3% in the premarket following a third-quarter earnings miss. The tire maker said its results were impacted by higher costs and a stronger U.S. dollar, although that was partially offset by higher prices.

Eli Lilly (LLY) – Eli Lilly beat top and bottom line estimates for its latest quarter, but the drugmaker’s stock fell 2.2% in the premarket as it cut its full-year forecast. Lilly is seeing a negative impact from a stronger dollar, increased cancer drug competition and lower insulin prices.

Hologic (HOLX) – Hologic rallied 7.6% in the premarket after the medical equipment maker reported better-than-expected quarterly profit and issued an upbeat outlook. Hologic said it saw “unprecedented strength” across its core businesses.

Stryker (SYK) – Stryker lost 4.9% in premarket action after the surgical equipment and medical device maker cut its financial outlook, citing the impact of inflation and a stronger U.S. dollar.

Avis Budget (CAR) – Avis Budget shares gained 3.7% in the premarket following better-than-expected quarterly earnings from the rental car giant amid continued strong travel demand.

Trex (TREX) – Trex shares tumbled 7.5% in premarket trading after the maker of decking and railing materials missed both top and bottom line estimates for its latest quarter. Trex said it reduced production levels and implemented layoffs during the quarter as it adjusted to falling sales.

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The tech tyranny is over. Here are the stocks driving this market

A worker washes a Caterpillar crawler dozer at Ideal Tractor in West Sacramento, California, on Monday, Aug. 1, 2022.

David Paul Morris | Bloomberg | Getty Images

Never have the bulls been more bashful and timid. Never have the bears been so ascendant and so wrong. Oh sure, the bears nailed Meta Platforms (META) and hit Microsoft (MSFT) out of the park. Amazon (AMZN) flopped. So did Alphabet (GOOGL).

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There could be ‘real signs’ for the Fed to slow down

CNBC’s Jim Cramer on Friday said that next week’s jam-packed week of earnings and economic data releases could result in good news for the Federal Reserve’s battle against inflation.

“This market’s trading like next week, we’ll see some real signs that the Fed’s winning its war on inflation, and they can, therefore, ease up on the rate hikes going forward… I wouldn’t be at all surprised if the market got it exactly right,” he said.

Cramer named two important economic events he’s watching next week: the FOMC’s next meeting, which is expected to conclude with a 0.75 percentage point interest rate increase, and the nonfarm payroll report.

“You can’t get a reduction in wages until you see many people losing their jobs, and that’s what the Fed needs to see,” he said.

Cramer also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: Eli Lilly, Uber, Devon Energy, AMD

Eli Lilly

  • Q3 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1.91
  • Projected revenue: $6.89 billion

The company has the chance to shine now that health care stocks are some of the new market leaders, he said.

Uber

  • Q3 2022 earnings release at 7:05 a.m. ET; conference call at 8 a.m. ET
  • Projected loss: loss of 18 cents per share
  • Projected revenue: $8.11 billion

Cramer said that if the company reports that there are plenty of drivers but customers can’t afford rides, that’ll be great news for the Federal Reserve.

Devon Energy

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call on Wednesday at 11 a.m. ET
  • Projected EPS: $2.12
  • Projected revenue: $4.16 billion

While the company is doing well, investors shouldn’t buy shares of oil companies when the economy is weakening, he warned.

AMD

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 70 cents
  • Projected revenue: $5.69 billion

Cramer said he’s interested in knowing if AMD is losing market share to Intel.

Wednesday: Humana, CVS, Qualcomm

Humana

  • Q3 2022 earnings release at 6:30 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $6.27
  • Projected revenue: $22.82 billion

CVS

  • Q3 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $2
  • Projected revenue: $76.74 billion

“I fear that CVS is considered a Covid play. Humana is a post-Covid darling,” Cramer said.

Qualcomm

  • Q4 2022 earnings release at 4 p.m. ET; conference call at 4:45 p.m. ET
  • Projected EPS: $3.14
  • Projected revenue: $11.33 billion

He said he wouldn’t be surprised if the stock went up even on a guidance cut, given how much shares of Qualcomm have declined this year.

Thursday: Starbucks, PayPal, DoorDash

Starbucks

  • Q4 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 72 cents
  • Projected revenue: $8.32 billion

He said he expects the company to report a solid quarter.

PayPal

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5:30 p.m. ET
  • Projected EPS: 96 cents
  • Projected revenue: $6.81 billion

“I think PayPal has a chance to regroup here, as their flagging days have probably ended,” Cramer said.

DoorDash

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected loss: loss of 59 cents per share
  • Projected revenue: $1.63 billion

He said that DoorDash is “inviting skepticism” since people aren’t getting their food delivered as frequently as they did during the height of the Covid pandemic.

Disclaimer: Cramer’s Charitable Trust owns shares of Eli Lilly, Devon Energy, AMD, Humana, Qualcomm and Starbucks.

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Omicron subvariants show resistance, putting some people at risk

Emerging omicron subvariants are resistant to key antibody treatments for HIV patients, kidney transplant recipients and other immunocompromised people, making them particularly vulnerable to Covid this winter, the White House warned this week.

“With some of the new subvariants that are emerging, some of the main tools we’ve had to protect the immunocompromised like Evusheld may not work moving forward. And that’s a huge challenge,” Dr. Ashish Jha, head of the White House Covid task force, told reporters on Tuesday.

President Joe Biden on Tuesday cautioned the estimated 7 million adults in the U.S. who have compromised immune systems that they are particularly at risk, but he could offer little in the way of reassurance other than telling them to consult their physician about what precautions to take.

“New variants may make some existing protections ineffective for the immunocompromised,” the president said before getting his booster Tuesday. “Sadly, this means you may be at a special risk this winter. I urge you to consult your doctors on the right steps to protect yourself, take extra precautions.”

The message clashes with repeated White House assurances that the U.S. has all the vaccines and treatments it needs to fight Covid this winter as public health officials are expecting another surge.

While this may be true for the general population, it is not the case for people with weak immune systems. They include those with cancer, those who have had organ transplants, people living with HIV and individuals who are taking medicine for autoimmune diseases.

Evusheld is an antibody cocktail authorized by the Food and Drug Administration to prevent Covid in people ages 12 and older who have moderately or severely compromised immune systems. The drug is administered as two injections, prior to infection, every six months.

Evusheld, made by AstraZeneca, has helped fill a gap in protection for those with weak immune systems who cannot mount a strong response to the vaccines. The drug, plus several rounds of vaccination, has led to significant declines in hospitalization among this cohort over the past several months, according Camille Kotton, an infectious disease expert who specializes in treating people with weak immune systems.

“We’ve been in a sweet spot for maybe several months now as far as immunocompromised patients having good protection and then good treatment options,” said Kotton, a physician at Massachusetts General Hospital and a member of the Centers for Disease Control and Prevention’s independent vaccine advisory committee.

But more immune evasive omicron subvariants such as BA.4.6, BA.2.75.2, BF.7, BQ.1 and BQ.1.1 are resistant to Evusheld, according to the National Institutes of Health. Scientists at Columbia University, for example, found Evusheld had completely lost its effectiveness against BA.4.6.

And BQ.1 and BQ.1.1 are likely resistant to bebtelovimab, the monoclonal antibody developed by Eli Lily to prevent people with compromised immune systems who catch Covid from developing severe disease, according to NIH.

That leaves people with compromised immune systems increasingly vulnerable as these subvariants increase in circulation in the U.S. As omicron BA.5 declines, this swarm of newer subvariants collectively make up about 38% of infections in the U.S., according to CDC data.

Although Pfizer’s antiviral Paxlovid remains effective against the omicron subvariants, people who have had organ transplants often can’t take the pill because of the way it interacts with other drugs they need, Kotton said.

“I’m concerned that the near future will be a challenging time for immunocompromised patients,” said Kotton. “The monoclonal antibodies in Evusheld are going to provide less protection and bebtelovimab is going to provide ineffective treatment for several of the emerging variants.”

And help is not on the way at the moment. Kotton said she’s not aware of any monoclonal antibodies that are ready to replace the ones the subvariants are chipping away at. Jha acknowledged at the White House on Tuesday that the U.S. has dwindling treatment and prevention options for people with weak immune systems as Covid evolves. He blamed Congress for failing to pass $22.5 billion in funding for the nation’s Covid response due to Republican opposition.

“We had hoped that over time as the pandemic went along, as our fight against this virus went along, we would be expanding our medicine cabinet,” Jha told reporters. “Because of lack of congressional funding that medicine cabinet has actually shrunk and that does put vulnerable people at risk.”

Andrew Pekosz, a virologist at Johns Hopkins University, said finding ways to protect people with compromised immune systems is the most critical issue of the pandemic right now and it needs to be addressed quickly.

“What we need to really work on is getting new antibody treatments out of the lab and into clinics,” Pekosz said. “In the lab, scientists know what next-generation monoclonal antibodies look like.”

Kotton said people with compromised immune systems should stay up to date on their vaccines, which means getting the new booster that targets omicron BA.5. Those who have stayed up to date throughout the pandemic have received six shots by now.

Those starting from scratch would receive a three-dose primary series of Moderna or Pfizer with the older generation shots and then a new booster that targets omicron, according to CDC guidelines.

People with compromised immune systems should continue to exercise caution this winter, because the immune-resistant omicron subvariants could pick up in circulation as people gather for the holidays, Kotton said. But she noted that the group has been more diligent in wearing masks and practicing mitigation measures to avoid the virus than the rest of the population.

The bigger problem is that the general population has largely moved on and is no longer taking basic precautions that could reduce transmissions and protect the vulnerable — such as wearing masks, Kotton said.

“If we all were to mask more in public venues that would enhance the safety for them and allow them to have a higher likelihood of a safer return to many activities,” she said.

Jha was asked by NBC News on Tuesday whether Biden telling people with weak immune systems to consult their physicians about precautions is an indication that the burden of responsibility has shifted to the individuals instead of the broader community.

“As a society — as a caring society, we care about all Americans, particularly the most vulnerable Americans,” Jha said.  “So it remains, I think, a collective responsibility for all of us to care about our fellow Americans who are immunocompromised.”

The CDC recommends that people in communities where the Covid risk level is moderate to self test and wear a high-quality mask before meeting indoors with someone who is at high risk of getting sick. Those who are at high risk should wear a high-quality mask when indoors in public.

When the Covid level is high, people in general should consider wearing high-quality masks and the vulnerable should consider avoiding indoor activities in public that aren’t essential, according to CDC. You can check your county’s Covid level at the CDC’s website.

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Jobs report will make or break July’s rally

CNBC’s Jim Cramer on Monday said the most important data this week is the Bureau of Labor Statistics release of the July nonfarm payrolls report on Friday morning.

“If it shows some job growth with no wage inflation, then the fabulous July rally can stand. But if it shows booming hiring with exceptionally large wage increases, then some of this rally, if not much of it, is going to be repealed,” the “Mad Money” host said. 

Job growth has been strong this year, leading economists to say the U.S. is not in a recession even with two back-to-back quarters of negative GDP. 

Another strong jobs report could mean the Federal Reserve, which added a three-quarters a percentage point interest rate hike last week, will have to take stronger action to slow down the economy and inflation.

Cramer also previewed this week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: Uber, AMD, Starbucks, Airbnb, JetBlue, PayPal

Uber

  • Q2 2022 earnings release at TBD time; conference call at 8 a.m. ET
  • Projected loss: loss of 27 cents per share
  • Projected revenue: $7.36 billion

Cramer said he believes Uber will always struggle to make money unless it gets “real” autonomous vehicles.

AMD

  • Q2 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $1.03
  • Projected revenue: $6.53 billion

AMD will likely report a strong performance, Cramer predicted.

Starbucks

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 77 cents
  • Projected revenue: $8.15 billion

Cramer said he wants to bet on Starbucks CEO Howard Schultz, not against him.

Airbnb

  • Q2 2022 earnings release between 4 p.m. and 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Projected EPS: 45 cents
  • Projected revenue: $2.11 billion

The company will likely report it’s doing well, Cramer said, adding that he believes shares of Airbnb won’t go higher unless it turns its cash flow into actual earnings.

JetBlue

  • Q2 2022 earnings release at 7 a.m. ET; conference call at 10 a.m. ET
  • Projected per share loss: 11 cents
  • Projected revenue: $2.45 billion

Cramer said he believes the Justice Department will block JetBlue’s deal to acquire Spirit Airlines.

PayPal

  • Q2 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 87 cents
  • Projected revenue: $6.78 billion

“If PayPal misses again, this is Elliott’s ballgame,” Cramer said, referring to activist investor Elliott Management’s recently acquired stake in the payment platform.

Wednesday: CVS

  • Q2 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $2.18
  • Projected revenue: $76.41 billion

Cramer said he expects the retail giant to report great numbers.

Thursday: Eli Lilly, Warner Bros Discovery, DoorDash

Eli Lilly

  • Q2 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1.70 
  • Projected revenue: $6.85 billion

Cramer said he believes the success of Eli Lilly’s new weight loss drug will help the company report a great quarter.

Warner Bros Discovery

  • Q2 2022 earnings release after the bell; conference call at 4:30 p.m. ET
  • Projected EPS: 12 cents
  • Projected revenue: $11.85 billion

Cramer said he believes the company will try to muddle through getting rid of its huge debt load totaling around $55 billion.

DoorDash

  • Q2 2022 earnings release at 4:05 p.m. ET; conference call at 6 p.m. ET
  • Projected per share loss: 21 cents
  • Projected revenue: $1.52 billion

Cramer said he’s unsure whether DoorDash will be able to revive its stock price.

Disclosure: Cramer’s Charitable Trust owns shares of AMD and Eli Lilly.

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Treasury yields fall as traders track economic data, Fed remarks

U.S. Treasury yields slipped Wednesday as investors continue to assess the economic outlook amid rising recession fears.

At around 5:48 a.m. ET, the yield on the benchmark 10-year Treasury note was down at 3.173%, while the yield on the 30-year Treasury bond dropped to 3.285%. Yields move inversely to prices.

As the second quarter draws to a close on Thursday, concern over a slowing economy and aggressive interest rate hikes from the Federal Reserve continue to dominate market sentiment.

An attempted rally for risk assets fizzled out on Tuesday after a disappointing consumer confidence reading, which came in at 98.7, below Dow Jones’ consensus estimates of 100.

The Conference Board’s one-year ahead inflation expectations hit a record high of 8.0%, exceeding the 7.7% seen in June 2008, while the Richmond Fed’s manufacturing index came in at -19, its lowest since May 2020 and well below consensus expectations of -7.

Fed Chairman Jerome Powell is due to give a speech at the European Central Bank forum at 9 a.m. ET. Powell acknowledged in a testimony to the Senate banking committee last week that steep rate hikes may tip the U.S. economy into recession, but reiterated the central bank’s commitment to reining in inflation.

On the economic data front, final first-quarter GDP figures are due at 8:30 a.m., along with PCE prices, corporate profits and consumer spending data.

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Spirit Airlines, Didi Global and more

Take a look at some of the biggest movers in the premarket:

Spirit Airlines (SAVE) – Spirit jumped 6.1% in the premarket after JetBlue (JBLU) sweetened its bid for Spirit. JetBlue will increase its breakup fee for the deal to $350 million and pay part of that as a dividend if the deal is consummated, increasing the value to $31.50 per share. JetBlue shares were unchanged.

Didi Global (DIDI) – Didi shares skyrocketed in the premarket after The Wall Street Journal reported that China regulators have concluded a year-long probe and it is set to lift an order banning the company from adding new users.

Keurig Dr Pepper (KDP) – The beverage maker’s stock will be added to the S&P 500 index prior to the opening of trading on June 21, along with ON Semiconductor (ON) and real estate investment trust VICI Properties (VICI). Keurig rallied 7.9% in premarket action, with ON Semiconductor surging 7.2% and VICI jumping 8.4%.

Eli Lilly (LLY) – The drugmaker’s stock rose 1.2% in premarket trading, after announcing successful results in studies involving diabetes drugs Trulicity and Jardiance.

Under Armour (UAA) – Under Armour stock is among those being replaced in the S&P 500 on June 21. Under Armour will move to the S&P MidCap 400, along with laser maker IPG Photonics (IPGP). Under Armour lost 1.2% in the premarket.

Revlon (REV) – Revlon is in talks with lenders on pushing back debt payment deadlines as the cosmetics maker tries to avoid a bankruptcy filing, according to people familiar with the matter who spoke to The Wall Street Journal. The talks involve extending the maturity date on about $1.7 billion in debt that comes due as early as 2024. Revlon added 1.6% in premarket trading.

Starbucks (SBUX) – Starbucks is considering only external candidates to be its next CEO, according to interim Chief Executive Officer Howard Schultz. He told The Wall Street Journal that the company needs to add new talent to its executive ranks. Starbucks was up 1.8% in the premarket.

Apple (AAPL) – Apple shares are on watch as the company’s annual Worldwide Developers Conference begins. Apple stock has lost 16.9% so far this year amid concerns about a slowdown in demand. Apple gained 1.4% in premarket trading.

Solar companies – Shares of solar equipment providers rose in premarket trading, following a Reuters report saying the White House would declare a 24-month exemption from solar panel tariffs as well as other moves to spur U.S. solar panel production. SolarEdge Technologies (SEDG) added 4.3%, Sunrun (RUN) jumped 11.1%, First Solar (FSLR) gained 2.3%, JinkoSolar (JKS) rallied 5.9% and SunPower (SPWR) rallied 7.2%.

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Meta, McDonald’s, Teladoc, Ford and more

Pavlo Gonchar | LightRocket | Getty Images

Check out the companies making headlines in midday trading.

Meta Platforms — Shares of the company formerly known as Facebook surged 17% after reporting mixed first-quarter results. The company posted a beat in earnings but a disappointing revenue miss. It also saw daily active users grow following a decline in the fourth quarter.

McDonald’s – Shares of the restaurant chain gained 3% after first-quarter revenue topped expectations. McDonald’s reported first-quarter revenue of $5.67 billion versus the $5.59 billion expected by analysts, according to Refinitiv. The company saw same-store sales growth of 3.5% in the U.S. and even higher in international markets, ahead of estimates compiled by StreetAccount.

Qualcomm — Qualcomm’s stock price surged more than 7% after its most recent earnings report showed all four of the company’s semiconductor businesses grew during the most recent quarter. Qualcomm posted adjusted earnings per share of $3.21 on revenue of $11.16 billion. Analysts surveyed by Refinitiv were forecasting earnings of $2.91 per share on revenue of $10.60 billion.

Ford — The automaker’s shares fell 2% after the company said its stake in Rivian dragged profits lower in the recent quarter. Ford reported adjusted earnings per share of 38 cents on $32.1 billion in revenue. Analysts surveyed by Refinitiv anticipated earnings of 37 cents per share on $31.13 billion in revenue.  

Caterpillar – Shares of the machinery company dropped more than 3% despite a first-quarter report that beat estimates on the top and bottom lines. Caterpillar reported an adjusted $2.88 in earnings per share on $13.59 billion of revenue. Analysts surveyed by Refinitiv had penciled in $2.60 in earnings per share on $13.40 billion of revenue. The company’s sales growth did slow relative to the fourth quarter, and operating profit margins shrank year over year.

PayPal — PayPal shares jumped 9% following a beat on revenue in the first quarter. The stock rose even as the payments firm issued weak guidance for the second quarter and full year.

Mastercard — Mastercard shares gained 4.6% following a beat on the top and bottom lines in the recent quarter. For the first time since the start of the pandemic, the company said cross-border travel ticked above 2019 levels.

Comcast — Shares of Comcast plummeted more than 6% despite beating analysts’ expectations on the top and bottom lines as growth in broadband subscriptions slowed. The company beat analysts’ estimates on the metric but noted that roughly 80,000 of the subscribers were free internet customers.

Southwest Airlines — Southwest Airlines’ stock rose 2% after reporting a wider-than-expected loss but a beat on revenue in the recent quarter. The company reaffirmed its second-quarter forecasts and said it expects revenue for that period to outpace 2019 despite fewer flights.

Pinterest — Pinterest’s stock price jumped more than 7% following an earnings beat. On Wednesday, the image-sharing company reported adjusted earnings of 10 cents per share and revenues of $575 million. In comparison, analysts polled by Refinitiv expected earnings of 4 cents per share on revenues of $573 million.

Eli Lilly — The drug maker’s shares 3.7% after the company reported results from a clinical trial showing its obesity drug tirzepatide helped patients lose up to 22.5% of their weight. Eli Lilly also reported better-than-expected earnings and revenue for the first quarter and boosted its full-year revenue guidance.

Teladoc —  Shares of the telehealth service plummeted by 45% after the company reported an earnings miss for its most recent quarter and gave weaker-than-expected revenue guidance, after which at least six Wall Street firms issued downgrades of the stock.

ServiceNow — Shares of ServiceNow added 7.9% following a beat on the top and bottom lines in the recent quarter. The company saw $1.73 adjusted earnings per share on $1.72 billion in revenue. Analysts expected $1.70 per share and $1.70 billion in revenue, according to FactSet’s StreetAccount.

— CNBC’s Jesse Pound, Tanaya Macheel and Sarah Min contributed reporting

Disclosure: Comcast owns CNBC’s parent NBCUniversal.

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Jim Cramer says investors should use these rules to build a turbulence-proof portfolio

Investors should follow a certain set of rules when building their portfolios to weather the market volatility that Monday’s rally suggests could happen, Jim Cramer said.

“When you see new, unseasoned merchandise exploding higher, along with names like Tesla surging on … a stock split, it tells you there might be a little too much excitement, a little too much froth, for the entire market. One or two of these runs would be fine, but when you see all of the speculative assets roaring in an overbought market,” prepare for some turmoil, the “Mad Money” host said.

Tesla is looking to split its stock to pay a stock dividend to shareholders, according to a filing Monday. The news led to Tesla stocks rising 8%, leading a tech rally for the day that included names like Microsoft and Amazon.

The Dow Jones Industrial Average gained 0.27%, while the S&P 500 rose 0.7%. The Nasdaq Composite increased 1.3%.

The Cboe volatility index, Wall Street’s fear gauge, closed below 20 for the first time since mid-January.

On the heels of the market gains, Cramer listed rules investors should consider to successfully weather potential market turbulence down the line. Here are his suggestions:

  • The most important rule is to own an oil stock, since fuel prices are increasing. “My favorites are Chevron for a steady dividend. It’s pulled back too, and Devon [Energy] also pulled back, which pioneered a new way to reward shareholders,” Cramer said.
  • Choose some low price-to-earnings multiple stocks. Cramer said Google-parent Alphabet and Facebook-parent Meta, both at “historically cheap valuations,” are good options that can withstand soaring inflation.
  • Consider a health care stock that can do well even if the Federal Reserve‘s interest rate hikes slow the economy down. “My favorite remains Eli Lilly,” Cramer said.
  • Own stock of a consistent retailer that can keep ahead of inflation. Cramer recommended Costco and said to avoid Dave & Buster’s.
  • Own one or two speculative stocks, but be careful. “I think it’s a great way to stay interested in the stock market. … But if you’re going to speculate, you have to be prepared for the possibility that these stocks could go to zero. Never buy something like AMC or GameStop with money you can’t afford to lose,” Cramer said.

Disclosure: Cramer’s Charitable Trust owns shares of Amazon, Microsoft, Alphabet, Meta, Chevron, Devon, Eli Lilly and Costco.

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