PRISM Market Moves on Thursday: The Honest Co. up, Novo Nordisk Shines; Shake Shack Upgraded, Victoria’s Secret Stumbles
US equities are trading higher at midday on Thursday, building on Wednesday’s gains. Outperformers include semis, social media, cloud software, homebuilders, banks, grocers, and select GLP-1 drug developers, while department stores, casual diners, cruise lines, A&D, payment processors, and biotech are having a more difficult day. Treasuries are mixed, the Dollar index is down (0.4%), Gold is flat, Bitcoin futures are up +0.1% and WTI crude is down (0.6%).
Notable gainers at midday are The Honest Co. ($HNST) has soared +22.5% on strong Q4 earnings with revenue, GM and EBITDA ahead, Arhaus ($ARHS) is up +16.1% on Q4 earnings, and Novo Nordisk ($NOVO) has risen +9.7% on announcing positive data from a Phase 1 trial of GLP-1 and amycretin with 13.1% weight loss after 12 weeks. Amycretin appears to be safe and well-tolerated. Shake Shack ($SHAK) is up +2.2% after being upgraded to outperform from market perform at TD Cowen.
The day’s decliners include Victoria’s Secret ($VSCO) which has dropped (29.8%) after Q1 revenue guidance came in below consensus and FY23 earnings and revenue outlook also below expectations. Infinera ($INFN) is down (13.7%) on weaker than expected preliminary Q4 results and expectations for a slow 1H, and Ciena ($CIEN) is down (13.6%) in spite of strong FQ1 earnings with EPS, EBITDA, and revenue beat, and GM and OM both ahead. The company said it is taking longer than expected for service providers to work through high levels of inventory.
