As markets opened on Tuesday, August 20, 2024, we are closely monitoring three major stocks: Eli Lilly and Company (NYSE:LLY), Tesla (NASDAQ:TSLA), and Bank of America Corporation (NYSE:BAC). Each company has made headlines with significant developments that are likely to impact their stock performance and broader market trends.
Eli Lilly (LLY) Shares Gain Follow News on Tirzepatide
Eli Lilly’s stock surged 4.66% to $964.82 in early trading following groundbreaking news about its drug tirzepatide. The company announced that its 176-week SURMOUNT-1 Phase 3 study showed tirzepatide reduced the risk of developing type 2 diabetes by 94% in adults with pre-diabetes and obesity or overweight.
The study, involving 1,032 adults, also demonstrated sustained weight loss, with the 15 mg dose leading to a 22.9% average decrease in body weight by the end of the treatment period.
Tirzepatide, approved as Mounjaro for type 2 diabetes and Zepbound for weight management, works by activating hormone receptors that regulate appetite and caloric intake. This latest data reinforces the drug’s potential as a long-term therapy for obesity and pre-diabetes.
Eli Lilly’s stock has shown remarkable performance, with a year-to-date return of 65.96% and a five-year return of 816.55%, reflecting investor confidence in the company’s innovative pipeline.
Tesla (TSLA) Stock Can Gain from Reduced EU Tariff
Tesla’s stock saw a modest increase of 0.13% to $223.01 in morning trading, buoyed by news of reduced tariffs on its China-made vehicles exported to the European Union. The EU has lowered the planned tariff on Tesla’s Chinese-built cars to 9%, down from the previously indicated 20.8% in July. This decision comes as part of the EU’s investigation into alleged Chinese subsidies for electric vehicle makers.
The reduced tariff could significantly impact Tesla’s competitiveness in the European market, potentially allowing the company to price its China-made vehicles more aggressively.
Despite this positive development, Tesla’s stock has faced challenges this year, with a year-to-date return of -10.23%. However, the company’s long-term performance remains strong, boasting a five-year return of 1,375.00%.
Bank of America (BAC) Stock Slides as Berkshire Continues to Trim Stake
Bank of America’s stock declined 2.48% to $38.69 in early trading, following news that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) had sold over $550 million worth of BAC shares. The sales, which occurred on August 15, 16, and 19, reduced Berkshire’s stake in the bank to about 12%. Shares were sold at prices ranging from $39.2719 to $39.6454 per share.
This move by Buffett, known for his long-term investment strategy, has caught the attention of market watchers. It appears to be part of a broader trend of Buffett reducing stakes in some long-held investments.
Despite this news, Bank of America’s stock has shown resilience, with a year-to-date return of 16.41% and a one-year return of 36.85%. The bank’s current market capitalization stands at $300.179 billion, with a price-to-earnings ratio of 13.92.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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