Stock Market Update

Stock futures suggest Wall Street is poised to open slightly lower on Tuesday. This comes after the S&P 500 achieved a record closing high for the second consecutive session, and the Dow Jones Industrial Average closed above 38,000 for the first time.

United Airlines Exceeds Expectations

United Airlines’ fourth-quarter earnings have beaten Wall Street forecasts. The airline expects adjusted profit of $9 to $11 per share by 2024, compared to analysts’ estimate of $9.48. However, the company anticipates a wider first-quarter loss due to the grounding of Boeing’s 737 MAX 9 planes by regulators.

Ericsson Faces Challenges

Swedish telecommunications equipment company, Ericsson, reported better-than-expected fourth-quarter operating profit. However, the company warned of ongoing challenges in the mobile network industry and expects market uncertainties to persist until 2024. This announcement caused U.S.-listed shares of Ericsson to decline by 0.9%.

Logitech Forecasts Sales Decline

Computer peripherals maker, Logitech, experienced a slight decrease in fiscal third-quarter revenue compared to the previous year. The company now projects a fiscal-year sales decline of 6% to 7% amounting to $4.2 billion to $4.25 billion. This forecast is narrower than their initial expectation of a 9% to 12% sales drop. As a result, Logitech’s stock fell by 7%.

Archer Daniels Midland Recovers

After experiencing a significant drop of 24%, Archer Daniels Midland’s stock is up by 1% in premarket trading. This recovery follows the agricultural company’s decision to place its chief financial officer, Vikram Luther, on administrative leave while investigating its accounting practices.

Sanofi to Acquire INBRX-101 Therapy from Inhibrx in $2.2 Billion Deal

Sanofi, a leading pharmaceutical company, has announced its plans to acquire the assets and liabilities of INBRX-101, a therapy developed by biopharmaceutical company Inhibrx. The deal is valued at up to $2.2 billion and marks a significant step forward in Sanofi’s commitment to providing innovative treatment options.

INBRX-101 therapy is currently undergoing evaluation in a registrational trial for the treatment of patients with alpha-1 antitrypsin deficiency. This condition affects the lungs and liver, and Sanofi believes that the acquisition of this therapy will enhance their portfolio in the respiratory and rare diseases space.

As part of the agreement, assets not associated with INBRX-101 will be spun off into a new publicly traded company. This strategic move allows Sanofi to focus on maximizing the potential of INBRX-101 while ensuring other assets receive the attention they deserve.

Shareholders of Inhibrx will receive $30 per share in cash, along with a contingent value right. This offer reflects the value and potential that Sanofi sees in INBRX-101, as well as providing a fair return for Inhibrx shareholders. Following this news, Inhibrx’s stock price rose by 11% to $37.

Upcoming Earnings Reports

Several companies are set to release their earnings reports on Tuesday, providing insights into their financial performance. Among them are:

1. Johnson & Johnson (J&J): The healthcare giant’s fourth-quarter earnings are highly anticipated. Analysts predict earnings of $2.28 per share with sales amounting to $21 billion. J&J recently completed a split-off from its former consumer health business, now known as Kenvue, to focus solely on branded prescription pharmaceuticals and medical devices.

2. Procter & Gamble: A renowned consumer goods company, Procter & Gamble’s earnings report will shed light on its performance during the fourth quarter.

3. Netflix: A leading streaming service provider, Netflix is expected to release its earnings report after the closing bell on Tuesday. The company forecasts fourth-quarter revenue of $8.7 billion, representing a 10.7% increase compared to the previous year.

4. Verizon Communications: As a major telecommunications company, Verizon’s earnings report will provide valuable insights into its financial standing.

5. General Electric (GE): A well-established conglomerate, GE’s earnings report will be closely watched by investors.

6. Texas Instruments: An industry leader in semiconductors, Texas Instruments’ earnings report will offer valuable information regarding the state of the technology sector.

7. Lockheed Martin: A prominent defense contractor, Lockheed Martin’s earnings report will give an overview of its performance in the defense industry.

8. 3M: A diversified technology company, 3M’s earnings report will showcase its financial results across various sectors.

9. D.R. Horton: A leading home construction company, D.R. Horton’s earnings report will provide insights into the housing market.

These upcoming earnings reports are expected to generate significant interest among investors and industry experts as they assess the performance of these companies.