Stocks are rising on hopes of a solution to the Iran war – plus Lilly is seeing a big uptick in sleep disorders
Posted by Israel News | Apr 6, 2026 | Health | 0 |
Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street. The market rally gained momentum on Tuesday as there were signs of a possible de-escalation in the Iran conflict. The S&P 500 rose more than 2% on unconfirmed reports that Iranian President Masoud Pezeshkian was willing to end the war on the condition of certain guarantees. We hesitate to call this an all-clear, but it takes two sides to end a war. Between that news and a Wall Street Journal report late Monday that President Donald Trump was willing to end the war without reopening the Strait of Hormuz, the market is reacting to the first signs of mutual interest in de-escalation. U.S. oil price WTI fell about 1% on Tuesday, although it was still above $100 a barrel. Eli Lilly made a big splash on the M&A front when it announced Tuesday that it would buy Centessa Pharmaceuticals in a deal worth up to $7.8 billion. Centessa Pharmaceuticals is a clinical-stage company working on new medicines to treat excessive daytime sleepiness such as narcolepsy. The company’s main active ingredient is cleminorexton (formerly known as ORX750), which is designed to mimic a molecule in the brain called orexin, which helps regulate wakefulness. Phase 2a clinical trials showed promising results in type 1 and type 2 narcolepsy and idiopathic hypersomnia, another form of excessive daytime sleepiness. Analysts at Wolfe Research currently forecast peak sales of more than $3 billion for Cleminorexton if these three target indications are met. Several analysts are positive about the deal, noting that it expands Lilly’s presence in neuroscience, an area that is increasingly focused beyond obesity and diabetes. Leave it to Lilly to figure out the code in difficult conditions like these sleep problems. In an interview with our CNBC colleague Angelica Peebles last year, Dan Skovronsky, Lilly’s chief scientific officer, said the company would invest to “solve big problems that are hiding in plain sight.” Additionally, Lilly is battling headlines from Novo Nordisk, which announced Tuesday that it is launching a subscription program with lower monthly prices for its oral and injectable versions of Wegovy. It’s another attempt to take back market share from Eli Lilly, the leader in the GLP-1 category due to its superior drugs and supply chain. Truist took note of calls from some other Wall Street analysts and began coverage on club name Corning with a Hold rating and a $125 price target. Analysts were positive about the momentum in Corning’s optics business and noted that the solar segment represents another growth driver in the coming years. However, their main concern was valuation, as the shares trade at a steep premium to the S&P 500. It sounds like Truist wants to be positive on Corning, but they’re waiting for a decline to make a more constructive assessment of the shares. Historically, Corning wasn’t cheap when we started buying last October, but a premium is the price to pay for the company’s accelerated growth, especially as it enters into more multibillion-dollar partnerships, as it did with Meta Platforms earlier this year. We also view Nvidia’s strategic partnership with Marvell and collaboration on silicon photonics technology as a vote of confidence in the future of fiber in data centers. Nike reports after the closing bell on Tuesday, and we’re looking for signs that the turnaround is back on track under CEO Elliott Hill. Nike’s North American business should see positive sales, while China and Converse are likely to continue to be major drags. The impact of tariffs is always a wild card. We’ll see earnings from Lamb Weston and Conagra before the opening bell on Wednesday. On the data side, we see ADP’s March private payrolls update, the government’s February retail sales report, and the Institute for Supply Management’s March manufacturing index. (A complete list of Jim Cramer’s Charitable Trust stocks can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
