Marvell Rallies on S&P Add; Micron Rebounds; Lilly Gains on Obesity Drugs

Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Shares of Marvell Technology (MRVL) and Flex (FLEX) are rising in premarket trading as the companies are set to replace Pool Corp. and Campbell’s in S&P 500 before the market open on June 22, S&P Dow Jones Indices says in emailed statement. Inclusion in the benchmark is becoming more important for companies in a world increasingly dominated by passive investment funds; on the flip side, expulsion from the benchmark can weigh on stock prices, as passive investors are forced to sell the shares and realign with the S&P 500’s new composition.
- Micron Technology (MU), a poster child for the rally and for Friday’s bust, rebounded ahead of the US market open. The company reached a trillion-dollar market capitalization in late May after rising more than ninefold in 12 months. The price action was extreme enough that some market strategists are questioning how long the rally can endure. Valuation jitters or updrafts in rate-hike expectations like Friday’s can catalyze minor pullbacks in broader indexes. However, for long-term investors, the question isn’t whether stocks are overvalued or the Federal Reserve raises rates 25 or 50bps. It’s about more substantial triggers that would crystallize enduring losses.
- Eli Lilly (LLY) shares gained in the early session following obesity drug presentations at the American Diabetes Association conference. Citi analysts say their conviction on Lilly is firmly intact, given the company’s incretin portfolio is “not built around singular blockbusters.” The weight-loss pill Foundayo and triple-G retatrutide “carry development programs with enough indication breadth to make them category-defining franchises across cardiometabolic and obesity-led complications,” according to Citi analyst Geoff Meacham.

See omnystudio.com/listener for privacy information.