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- 📈 CG Oncology's 25% Breakthrough
📈 CG Oncology's 25% Breakthrough
IBM Unveils $150B U.S. Investment, Huawei aims to take on Nvidia’s H100, Woodside Energy commits $17.5B to LNG, Merck KGaA to buy SpringWorks for $3.9B, CG Oncology's Cancer Drug shows impressive results
Evelio Silvera
April 29, 2025
Good morning.
⚡ The Fast Five → IBM Unveils $150B U.S. Investment, Huawei aims to take on Nvidia’s H100, Woodside Energy commits $17.5B to LNG, Merck KGaA to buy SpringWorks for $3.9B, CG Oncology's Cancer Drug shows impressive results
🔎 Market Trends → S&P 500 ends near flat as investors eye earnings; US Futures Edge Lower Ahead of Packed Earnings Week
And now…
⏱️ Your 5-minute briefing for Tuesday, April 29, 2025:
MARKET BRIEF
Before the Open
As of market close 04/28/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Hold Steady as Big Earnings, Data Loom
The Dow gained 0.3% to 40,227.6 and the S&P 500 edged up 0.1% to 5,528.8, marking a fifth straight day of gains. The Nasdaq slipped 0.1% to 17,366.1 as tech names showed hesitation ahead of key earnings.
The Big Picture:
Investors are bracing for a blockbuster week of earnings and economic data with quiet optimism. Solid earnings beats so far have helped lift sentiment, with S&P 500 earnings growth clocking in at nearly 18%, far outpacing expectations.
While tech paused Monday, the broader market stayed firm, buoyed by sectors like utilities and real estate. Treasury yields dipped, easing pressure on rate-sensitive areas and setting a constructive tone as we head into heavy-hitting reports from Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).
WTI crude slipped 1.8% to $61.88 amid global demand worries. Gold climbed 1.9% to $3,361.10, a classic move as traders hedge ahead of uncertain macro headlines.
Market Movers:
Apple (AAPL) and Meta Platforms (META) each gained modestly ahead of earnings, helping offset broader tech softness.
Nvidia (NVDA) dropped 2.1% as China's Huawei unveiled an AI chip seen as potential competition.
Microsoft (MSFT) dipped 0.2%, with investors cautious ahead of guidance amid economic uncertainty.
What They’re Saying:
"Texas manufacturing production continued to grow in April, though the future is more uncertain as demand fell and outlooks worsened," said Dallas Fed's Emily Kerr, highlighting trade policy anxieties.
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Job Openings and Labor Turnover Survey (JOLTS) - 10:00am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
Earnings Reports
Today: Coca-Cola, Visa, Starbucks, Pfizer, PayPal, Royal Caribbean, Hilton, Spotify, UPS, Honeywell, Booking.com, Mondelez, S&P Global, AstraZeneca, HSBC, Ecolab
Tomorrow: Microsoft, Meta, GSK, Allstate, Aflac, MetLife, Robinhood, Yum! Brands, QUALCOMM, Caterpillar, Public Storage
MARKET BRIEF
Leading News
CG Oncology's Bladder Cancer Breakthrough Signals Undervalued Opportunity
Photo Credit: Nasdaq, Inc.
Why it matters:
Investors often overlook medical innovations until clinical data forces the market's hand – as happened Monday when CG Oncology's (CGON) shares surged 25% on remarkable cancer treatment results that match or exceed industry giant Johnson & Johnson's competing therapy.
Zoom Out:
The biotech's cretostimogene treatment demonstrated 34% complete response rate at two years for a difficult-to-treat bladder cancer, with patients remaining cancer-free for a median of 27.9 months – potentially outlasting J&J's competing treatment.
This durability represents the holy grail in oncology treatments, where persistence of effect translates directly to market share. Wall Street's initial skepticism has given way to recognition that CGON may have cracked the code for this specific cancer indication.
Key Insights:
Leveling the playing field: At the one-year mark, both CGON's drug and J&J's TAR-200 showed identical 46% complete response rates, but CGON's longer durability (27.9 vs. 25.8 months) provides a critical competitive advantage in a market where patients and doctors prize lasting results.
Market positioning shift: RBC Capital's Gregory Renza notes the "Street underappreciated cretostimogene" before these results, but "with this update, we believe that is no longer the case" – suggesting widespread analyst upgrades may follow as the investment community reappraises CGON's market potential.
Technical momentum: The stock gapped above its 50-day moving average during Monday's session – often a precursor to continued upward movement as technical traders detect improving momentum.
Market Pulse:
"While the non-muscle invasive bladder cancer market will be competitive, we now see CGON as having a better shot at capturing market share," notes Renza, maintaining his outperform rating and $66 price target – implying 136% upside from Monday's close.
Bull’s Take:
Patient-friendly administration and impressive durability give CGON a fighting chance against pharmaceutical heavyweight J&J (JNJ) – with the added benefit that small biotechs typically deliver outsized returns when their therapies prove competitive against industry giants.
Headlines
OpenAI Adds Shopping to ChatGPT in a Challenge to Google (link)
IBM Unveils $150 Billion Investment in America to Accelerate Technology Opportunity (link)
Huawei aims to take on Nvidia’s H100 with new AI chip (link)
Merck KGaA to buy rare cancer biotech SpringWorks for $3.9B (link)
Woodside Energy commits $17.5 billion to Louisiana LNG project (link)
Sabre enters into definitive agreement to sell its Hospitality Solutions business unit to TPG for $1.1 billion (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to dougboneparth