Tuesday's First Moves: BE Joining SPX, AMGN & NVS Fall, PANW Downgrade

0:00So we kick up a new weekend's new names to watch and Diane King Hall is with me for some of the first moves that we are watching and includes here in the biotech space focusing on Amgen and Novartis and I say good morning to you. Good morning. Yeah, Amgen getting dinged this morning and this is more about the setback over at Novartis and what it means for the broader space. So shares of Amgen sliding more than 7% and it comes on news that Novartis is a failure at its cardiovascular drug setback here. It failed to meet the main goal of its late stage phase three trial. The trial of this drug had tested the risk factors for cardiovascular disease and treating that it failed to reduce the risk of severe cardiovascular outcomes in this late stage trial here. The issue is so why is Amgen getting hit because Amgen is developing its own drug to treat it. So the question is will that

1:00drug have the same issues in terms of addressing cardiovascular events. So the market had priced in this probability that it would be successful. It has not been successful in that late stage trial there. So the question is will Amgen have the same issue here? Amgen's phase three data is not expected until mid 2028 so investors could be waiting for some time to have a definitive answer on this front here. So they're selling first to ask and questions later. You have in terms of early amneless reaction, cell side analyst reaction, BMO capital has downgraded Amgen from outperform to market perform. They are keeping their $450 price target. So that suggests that this downgrade is more about limited upside from here. So they're essentially moving to the sidelines, taking this weight and sea approach with regard to this pipeline. So it's all about this drug over at Nevada's having this knock on effect over at Amgen. And Nevada's down 12.5% Amazon. I'm sorry, Amgen down 7.2%. And when I look at the heat

2:04map and you look at healthcare, that entire block is red. I mean I see Merck, J and J Abbott, Abbey, Lilly, Bristol Myers, United Health, all with down arrow. So that group is under pressure today. Let's talk about bloom energy. A name we've focused many of our guests have chosen this name and now some big news. Yeah, big news for bloom energy. Those shares blooming this morning. The stock is rallying at the moment by more than 7% almost an 8% gain here. And this on news that it will be added to the S&P 500. It will join the broadest benchmark of US stocks on September 20th. So this stands out in the market that we know is choppy today as we manage and contend with higher oil prices, the tit for tat on the tariff front and then just renewed rate hike expectations. So while you have those headwinds facing the broader market, you have bloom energy shares rising on news that it will be added to

3:04the S&P 500. It's not the only one that will be added at the same time you're seeing the trade deaths removed among others being removed. That's had a tough year. Bloom energy you got UBS getting bullish on this off the back of this news. They've raised their price target at 325 and they maintain a buy rating on this. So that implies upside from the closing levels that we saw last Friday more than 20% in valuing the company at a higher valuation. When you think about the path forward from here for 2028 sales based on a revenue forecast of 8.9 billion bloom energy is one of those names that has been moving higher when we think about the increasing need for energy with the proliferation of AI Nicole and all three names are higher that are going into the S&P 500. No surprises. You know those fund managers that clovey the index exactly have to then buy up some of these shares every point you're in a room and also bloom energy higher. Let's talk about Palo out on out this

4:08name getting a downgrade. It is and there are actually a couple of analysts take on this one now today so you can see that playing out real time in terms of the choppiness and the action in early trade here for Palo Alto. So you got Philip securities who is taking a step back from this at the same time you got counterfeits share of reiterating their bullish view on Palo Alto. So it's kind of a tug of war in terms of analysts views on this on Philip side they've downgraded it to neutral from accumulate so they're moving to the sidelines they've got a price target of 346 on Palo Alto which is actually a little up from where it is but not by much so you can see why they move to the sidelines they say the stock look has rallied from its February low to this August peak because of AI related catalysts and easing concerns about the software space we've been watching some of those software names make a recovery on Nicole you and I've been covering that at the same time you've got counterfeits share of reiterating their bullish view on Palo Alto networks they've reiterated

5:09an overweight rating 425 dollar price target they highlight the recent quarterly results from Palo Alto networks they talk about next generation security momentum with this one what their ARR looks like here and then they like the guidance that they close out fiscal 2026 beating every metric included in their guide and so you've got some conflicting viewpoints on this one and it was interesting because we heard from CrowdStrike which really had a great response to the upside when we heard from Palo Alto that pulled back but all three of we think about Zscaler Palo Alto CrowdStrike they're all down so far this month of September dying king all great to see you great to see you catch every day of eight and new here on Schwab Network