PRISM Market Moves: Viking Therapeutics Invades Weight Loss Space, up 94%; Macy’s Gains
US equities are mixed on Tuesday at midday after stocks finished mostly lower in an uneventful Monday session. Underperformers include tobacco, rentals, biotech, managed care, and P&C insurers, while autos, semis, airlines, chemicals, department stores, energy, cruise lines, auto parts retailers, dollar stores, pet products, homebuilders and crypto plays are outperforming. Big tech is mixed and small caps continue to add to yesterday’s strength. Treasuries are mixed, the Dollar index is flat, Gold is up +0.2%, Bitcoin futures are up +3.9% and WTI crude is up +0.9%.
Notable gainers at midday are Viking Therapeutics ($VKTX) which is up +93.1% after reporting statistically significant reductions in body weight versus placebo in a Phase 2 study of its dual GLP-1/GIP receptor agonist, VK2735. The company is planning to meet with the FDA to discuss next steps. Hims & Hers Health ($HIMS) has soared +34.6% on strong Q4 results with EPS and revenue beat, and the company reporting a surprise profit. The company noted emerging categories such as Hers dermatology and weight loss are expected to significantly contribute to growth. Macy’s ($M) has gained +3.1% following its Q4 results being ahead on better sales and margins. The company will close around 150 underperforming stores, expand its upscale chains by 20% and unlock $600 – $700 million in asset monetization gains.
The day’s decliners include Perrigo Co ($PRGO) which has fallen (15.1%) on weaker than expected Q4 earnings. The company flagged headwinds from actions it is taking to augment and strengthen its infant formula business with stabilization expected in the second half of the year. Unity Software ($U) is down (8.7%) on Q4 results, but has been upgraded to neutral from underweight at Piper Sandler. CarGurus ($CARG) has lost (7.0%) on lighter Q1 guidance due to challenges facing the Digital Wholesale business, and Apellis Pharmaceuticals has dropped (4.2%) in spite of Q4 coming in ahead of consensus.
