US Stocks Mixed as Nvidia Rises After Pullback

American depositary receipts (ADRs) of Danish drugmaker Novo Nordisk (NVO) rose Tuesday on the New York Stock Exchange (NYSE) after the company announced that its popular weight-loss drug Wegovy has been approved to start being sold in China.

The treatment for overweight and obese patients was approved “recently” by China’s National Medical Products Administration, according to a translation of a Chinese release from Novo Nordisk released Tuesday morning.

Novo Nordisk’s Ozempic and Wegovy have exploded in popularity over the last several years, boosting the company’s earnings and stock price to make it the most valuable company in Europe, while its U.S. competitor Eli Lilly (LLY) has seen similar growththanks to its weight-loss drugs Mounjaro and Zepbound.

The announcement comes a day after Novo Nordisk said it plans to spend just over $4 billion expanding its U.S. manufacturing with a new facility in North Carolina as part of a broader $6.8 billion effort to boost capacity this year. The company has also completed a number of acquisitions over the last year to increase its production.

-Aaron McDade
Spirit AeroSystems Stock Slides After Boeing Reportedly Changes Offer Terms
59 minutes ago

Spirit AeroSystems (SPR) shares dropped after Bloomberg reported late Monday that Boeing (BA) changed the terms of its all-cash offer to reacquire the parts supplier for a mostly stock deal valuing the aerostructure supplier at about $35 per share.

If accepted, the offer of $35 per share would represent a premium of about 6% to Spirit’s $33.07 Monday close and implies 22% upside from the stock’s Feb. 29, close, the day prior to the takeover discussions becoming public.

In addition, the deal will require Spirit to spin off some of its manufacturing plants to Boeing’s European rival Airbus (EADSY), Bloomberg reported. Discussions have faced headwinds in recent months after Airbus threatened to block the deal if it involved Boeing building any of its newest aircraft.

The embattled plane maker has come under intense scrutiny from federal aviation regulators and lawmakers this year following a door plug of an Alaska Airlines (ALK) 737 Max jet detaching mid-flight in January.

Source: TradingView.com.

Taking a look at the weekly chart, Spirit AeroSystems shares broke above a multi-year downtrend line in early March after news of Boeing’s potential takeover of the company emerged.

Since that time, the price initially retraced, but found support from the breakout point and now trades just below the neckline of an inverse head and shoulders pattern, a chart formation that indicates a potential reversal back to the upside.

Looking ahead, investors may monitor for a volume-backed breakout above the pattern’s neckline at $35. Such a move could mark the beginning of a new uptrend and see the stock climb to around $54 where it would likely encounter overhead resistance from a horizontal line that connects a series of price action stretching back to May 2017.

-Tim Smith
Stock Futures Mostly Higher
2 hr 14 min ago

Dow futures were down 0.1% in premarket trading Tuesday.

S&P futures rose 0.2%.

Nasdaq futures rose 0.3%.