Futures Indices
- **Dow Futures: UNCH
- **S&P 500 Futures: UNCH
- Nasdaq 100 Futures: +0.13%
Market Environment
US futures are flat this Tuesday, fueled by yesterday’s momentum when the Dow Jones closed at a historic record. The mood remains constructive as investors digest a slew of clinical results in the biotech sector and adjustments in the bond market.
The rate market shows a divergence: the 2-year yield (US2Y) slips to 3.46%, while the 10-year (US10Y) rises to 4.17%. This steepening of the curve reflects cautious confidence in long-term economic growth.
Stocks to Watch Today
**Bright Minds Biosciences ($DRUG) | +44.0%** The biotech stock is soaring after the success of its Phase 2 trial for BMB-101. The drug candidate reduced absence seizures by 73% on average in patients with drug-resistant epilepsies.
**Arrowhead Pharmaceuticals ($ARWR) | +12.0%** Spectacular jump following news that its obesity therapy doubled weight loss when combined with Eli Lilly’s Zepbound (9.4% vs. 4.8% alone) over 16 weeks.
**Microchip Technology ($MCHP) | +3.6%** The stock benefits from positive momentum after Cantor Fitzgerald upgraded its rating to "Overweight" with a price target raised to $85.
**Zenas BioPharma ($ZBIO) | -52.0%** Sharp drop despite technically positive Phase 3 results. Investors view the data as insufficient to support the valuation after last year’s massive rally.
Recommendation Changes
Upgrades
- Bank Of America ($BAC) → Buy, target $66 (Daiwa).
- Axon Enterprise ($AXON) → Buy, target $742 (NorthCoast).
- Truist Financial ($TFC) → Outperform, target $58 (Evercore).
Neutral
- First Citizens ($FCNCA) → Neutral, target $2300 (Goldman Sachs).
Downgrades
- AT&T ($T) → Sell, target $20 (Arete Research).
- Comcast ($CMCSA) → Sell, target $23 (Arete Research).
Have a great session, everyone.
