MARKET WRAPS

STOCKS: U.S. stocks slid as reports of a short bet from mortgage-backed security skeptic Michael Burry weighed on artificial-intelligence companies.

TREASURYS: Treasury yields declined as the government shutdown dragged on.

FOREX: The U.S. dollar rose against rivals amid risk aversion.

COMMODITIES: Oil futures retreated as traders digested the OPEC+ decision to raise output in December and pause increases in the first quarter of next year.

HEADLINES

Pfizer, Novo Nordisk Escalate Bidding War for Weight-Loss Drug Startup

Drugmakers Novo Nordisk and Pfizer raised their offers in the multibillion-dollar takeover battle for obesity-drug developer Metsera, the latest twist in their unusual fight over the startup.

Metsera said Tuesday that Novo Nordisk's proposal values the biotech company at up to $86.20 a share, or approximately $10 billion, up from its previous bid of $9 billion. This valuation represents an approximately 159% premium to Metsera's closing price on Sept. 19, the last trading day before the Pfizer deal was disclosed.

Pfizer's new offer values Metsera at up to $70 a share, or about $8.1 billion. Pfizer had previously struck a deal to buy Metsera for up to $7.3 billion.

Amgen Raises Full-Year Outlook After Third-Quarter Profit, Sales Jump

Amgen raised its outlook for the year after third-quarter profit jumped aided by sixteen products posting at least double-digit sales growth.

The Thousand Oaks, Calif.-based biotechnology company on Tuesday reported a profit of $3.22 billion, or $5.93 a share, compared with a profit of $2.83 billion, or $5.22 a share, in the same quarter a year ago.

Adjusted earnings were $5.64 a share. Analysts polled by FactSet expected $5.02 a share.

Pfizer Profit Falls Amid Lower Covid-19 Drug Demand

Pfizer reported lower third-quarter profit and sales as demand for its Covid-19 vaccine and antiviral drug continued to decline.

The drugmaker, which is in the throes of a takeover battle with rival Novo Nordisk for weight-loss drug developer Metsera, posted net income of $3.54 billion, or 62 cents a share, down from $4.47 billion, or 78 cents a share, the year prior.

Adjusted earnings were 87 cents a share. Analysts had expected 63 cents, according to FactSet.

Rivian Third-Quarter Revenue Rises 78% on Higher Vehicle Deliveries, Pricing

Rivian Automotive recorded a jump in third-quarter revenue as vehicle deliveries and average selling prices increased.

The electric-vehicle maker on Tuesday posted a 78% increase to its top line, to $1.56 billion, in the quarter ended Sept. 30. Analysts surveyed by FactSet forecast revenue of $1.51 billion.

Rivian recorded a loss of $1.17 billion, or 96 cents a share, compared with a loss of $1.1 billion, or $1.08 a share, a year earlier. Analysts expected a loss of 88 cents, according to FactSet.

Caterpillar Targets Bigger Sales Growth Through 2030

Caterpillar is looking to accelerate its annual sales growth through 2030 and beef up its capital spending on capacity and digital technology.

The company laid out aggressive long-term growth targets at its Investor Day Tuesday, saying it expects sales to hit a compound annual growth rate of 5% to 7% between 2024 and 2030. That's up from 4% between 2019 and last year.

Caterpillar also is targeting an adjusted operating profit margin of $60 billion to $100 billion between 2024 and 2030, up from a previous estimate for $42 billion to $72 billion.

Yum Brands Explores Sale of Pizza Hut

Yum Brands is evaluating strategic options for its Pizza Hut business, including a possible sale of all or parts of the struggling brand.

The restaurant-chain owner said Tuesday that Pizza Hut has worked hard to turn around its business, but might need more resources outside of Yum Brands to succeed.

"We do think the business can be positioned for even greater success in the future," said Chris Turner, Yum's new chief executive, on an earnings call.

Trump Negotiating Deal With Ozempic Maker to Sell Some Weight-Loss Drugs for $149

The Trump administration is negotiating a deal with weight-loss drugmakers Eli Lilly and Novo Nordisk that would allow the lowest doses of some of their obesity drugs to be sold to consumers at $149 for a month's supply via TrumpRx, according to people familiar with the matter.

The deals would also result in Medicare and Medicaid covering the drugs for weight loss, the people said, which would be a boon to the companies.

The discussions are still ongoing but if agreements are finalized, Trump is expected to announce them Thursday morning at the White House, alongside pharmaceutical executives, the people said.

Major Tesla Investor Rejects Elon Musk's $1 Trillion Pay Deal

Norway's sovereign-wealth fund rejected Tesla Chief Executive Elon Musk's new $1 trillion pay package, becoming the first major investor to disclose its decision.Norges Bank Investment Management, the arm of the central bank which manages the $1.9 trillion fund, raised concerns Tuesday over the size of the remuneration package.

"While we appreciate the significant value created under Mr. Musk's visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk-consistent with our views on executive compensation," it said in a statement.

Tesla shares were down nearly 4.3% in afternoon trading on Tuesday.

Match Results Improve, Though Tinder Is Still Searching for Love From Users

Users are still swiping left on Tinder.

The dating app, owned by Match Group, experienced another decline in revenue and a 7% drop in paying users, though Chief Executive Spencer Rascoff said certain new product offerings are gaining traction with Gen Z users.

Match experienced more growth on its Hinge app, where paying users rose 17%.

TALKING POINT The Stock Market Is Headed for a Fall, Bank Bosses Say. They May Be Right.

U.S. stocks might have found an air pocket this week as investors look to fly directly from last week's megacap earnings parade directly into Nvidia's update later this month and a Federal Reserve rate decision that they're still hoping will give markets a final jolt into the end of the year.

With the government shutdown entering its 35th day, and shaping up to be the longest on record, investors are bereft of the jobs and inflation data they need to parse the Fed's policy path.

At the same time, worries over the fate of President Donald Trump's tariff strategy, and what might replace it should the Supreme Court reject his authority to use emergency powers to impose them, continue to linger.

Credit markets concerns, meanwhile, are bubbling under the surface following a series of fraud and bankruptcy-related issues that has unsettled the $1.75 trillion market and elicited a warning of "cockroaches' from JPMorgan Chase CEO Jamie Dimon.

Add in the sky-high valuations of tech stocks, ongoing discussions of a bubble in artificial intelligence, and speculative fever in gold and Bitcoin and some would argue you have a recipe for correction.

That's exactly what Goldman Sachs CEO David Solomon did Monday night during a financial event in Hong Kong.

"Of course, it's likely there will be a 10% to 20% drawdown in equity markets over the next 12 months," Solomon told the event. "That doesn't mean the general direction of capital flows is changing, it just means that things run and then they pull back so people can reassess."

--Martin Baccardax, Barron's

Expected Major Events for Wednesday

07:00/GER: Sep Manufacturing orders

07:00/GER: Sep Manufacturing turnover

07:45/FRA: Sep Industrial production index

08:45/ITA: Oct Italy Services PMI

08:50/FRA: Oct France Services PMI

08:55/GER: Oct Germany Services PMI

09:00/UK: Oct UK monthly car registrations figures

09:00/ITA: Sep Retail Sales

09:30/UK: Oct S&P Global UK Services PMI

09:30/UK: Oct UK Official Reserves

09:30/UK: Oct Narrow money (Notes & Coin) and reserve balances

11:00/FRA: Sep OECD CPI

12:00/US: 10/31 MBA Weekly Mortgage Applications Survey

13:15/US: Oct ADP National Employment Report

13:15/CAN: Oct Official International Reserves

14:30/CAN: Oct Canada Services PMI

14:45/US: Oct US Services PMI

15:00/US: Oct ISM Report On Business Services PMI

15:30/US: 10/31 EIA Weekly Petroleum Status Report

16:00/US: Oct Global Services PMI

23:30/JPN: Sep Provisional Labour Survey - Earnings, Employment & Hours Worked

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Expected Earnings for Wednesday

AES Corp $(AES)$ is expected to report $0.59 for 3Q.

Air Canada (AC.T) is expected to report $1.13 for 3Q.

Anika Therapeutics Inc $(ANIK)$ is expected to report $-0.27 for 3Q.

ArcBest Corp $(ARCB)$ is expected to report $1.29 for 3Q.

Arvinas Inc $(ARVN)$ is expected to report $-0.71 for 3Q.

Astec Industries Inc $(ASTE)$ is expected to report $-0.35 for 3Q.

Avanos Medical Inc (AVNS) is expected to report $-0.01 for 3Q.

Avient Corp (AVNT) is expected to report $0.49 for 3Q.

Bio-Techne Corp $(TECH)$ is expected to report $0.30 for 1Q.

Bunge Global SA $(BG)$ is expected to report $1.70 for 3Q.

Choice Hotels International Inc $(CHH)$ is expected to report $1.93 for 3Q.

Cinemark Holdings Inc $(CNK)$ is expected to report $0.48 for 3Q.

DigitalOcean Holdings Inc $(DOCN)$ is expected to report $0.22 for 3Q.

Emerson Electric Co $(EMR)$ is expected to report $1.24 for 4Q.

Fidelity National Information Services Inc $(FIS)$ is expected to report $0.68 for 3Q.

Fiverr International Ltd $(FVRR)$ is expected to report $0.18 for 3Q.

Frontdoor Inc (FTDR) is expected to report $1.39 for 3Q.

Green Plains Inc $(GPRE)$ is expected to report $-0.03 for 3Q.

Humana Inc $(HUM)$ is expected to report $2.86 for 3Q.

IRSA-Inversiones y Representaciones SA GDR (IRS,IRSA.BA) is expected to report for 1Q.

InMode Ltd $(INMD)$ is expected to report $0.32 for 3Q.

Investors Title Co $(ITIC)$ is expected to report for 3Q.

Larimar Therapeutics Inc $(LRMR)$ is expected to report $-0.39 for 3Q.

Lemonade Inc (LMND) is expected to report $-0.75 for 3Q.

Louisiana-Pacific Corp $(LPX)$ is expected to report $0.38 for 3Q.

McDonald's Corp $(MCD)$ is expected to report $3.32 for 3Q.

Natural Health Trends Corp (NHTC) is expected to report for 3Q.

New York Times Co - A Share $(NYT)$ is expected to report $0.52 for 3Q.

Owens Corning $(OC)$ is expected to report $3.69 for 3Q.

PPL Corp $(PPL)$ is expected to report $0.42 for 3Q.

Palmer Square Capital BDC Inc (PSBD) is expected to report $0.43 for 3Q.

Parsons Corp (PSN) is expected to report $0.51 for 3Q.

Payoneer Global Inc $(PAYO)$ is expected to report $0.06 for 3Q.

Sabre Corp $(SABR)$ is expected to report $0.04 for 3Q.

Sleep Number Corp (SNBR) is expected to report $0.15 for 3Q.

Targa Resources Corp (TRGP) is expected to report $2.11 for 3Q.

USA Compression Partners LP $(USAC)$ is expected to report $0.23 for 3Q.

WideOpenWest Inc $(WOW)$ is expected to report $-0.16 for 3Q.

Zimmer Biomet Holdings Inc $(ZBH)$ is expected to report $0.93 for 3Q.

inTEST Corp $(INTT)$ is expected to report $-0.02 for 3Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

November 04, 2025 16:41 ET (21:41 GMT)

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