Tariffs Escalate, But Biotech M&A Steals the Show

US stock futures fell on Monday after the Supreme Court struck down President Trump's emergency tariffs. In response, Trump announced he would raise his global tariff rate to 15%, up from the 10% announced the previous Friday, effective immediately. Trump also warned that further tariffs would be coming in the months ahead.

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Major Indexes: S&P 500 lower, Nasdaq lower, Dow lower, Russell 2000 lower

Leading Sectors: Health Care

Lagging Sectors: Technology, Materials, Communication Services, Consumer Discretionary, Financial, Industrial, Consumer Staples

Arcellx (ACLX): Gilead Sciences (GILD) agreed to acquire the biotech company for $7.8 billion, offering $115 per share in cash plus an additional potential payout of $5 per share. Arcellx focuses on cancer immunotherapies. The deal is expected to close in the second quarter, sending ACLX shares surging in premarket trading.

Legend Biotech (LEGN): Shares rose in premarket trading following news that rival multiple myeloma drugmaker Arcellx is being acquired by Gilead Sciences for $7.8 billion, lifting sentiment across the sector.

Enhabit (EHAB): The company announced it will be acquired by private equity firm Kinderhook Industries in an all-cash deal worth approximately $1.1 billion, at $13.80 per share. Shares jumped in premarket trading.

Veris Residential (VRE): The residential real estate company agreed to be bought out by a group of investors led by Affinius Capital at $19.00 per share in cash, valuing the company at around $3.4 billion. Shares rose in premarket trading.

MoonLake Immunotherapeutics (MLTX): The biotech company reported positive results from a mid-stage clinical trial of its drug sonelokimab for a type of inflammatory arthritis called axial spondyloarthritis. The company also updated its 2025 financial outlook. Shares edged higher in premarket trading.

Novo Nordisk (NVO) and Eli Lilly (LLY): Novo Nordisk shares fell sharply after a clinical trial showed its weight-loss drug CagriSema underperformed compared to Eli Lilly's rival treatment. Eli Lilly shares rose in response.

Domino's Pizza (DPZ): The pizza chain beat earnings expectations, with U.S. same-store sales growing 3.7% in the fourth quarter, ahead of analyst estimates. Overall quarterly revenue also came in above forecasts at $1.54 billion. Shares gained in premarket trading.

Fortune Brands Innovations (FBIN): Shares jumped in premarket trading after the Wall Street Journal reported that activist investor Ed Garden has built a stake in the company and is pushing to replace its incoming CEO.

VF Corp (VFC): Shares fell after JPMorgan downgraded the apparel and footwear company. Analysts warned that the recovery of its Vans brand could take a long time, with sales expected to decline significantly both in stores and online.

Software Stocks: Several software companies fell after investment bank Jefferies downgraded them to "hold," citing ongoing risks and negative sentiment tied to artificial intelligence disruption. Monday.com (MNDY) and Freshworks (FRSH) dropped, while DocuSign (DOCU) and Workday (WDAY) also declined.

Airline Stocks: United Airlines (UAL), American Airlines (AAL) and Delta Air Lines (DAL) all edged lower after a major snowstorm swept across the northeastern United States, forcing widespread flight cancellations. Around 20 inches of snow were reported in parts of Long Island, New York.

(Stocks showing elevated volume and notable price movement)

Gainers: NCLH, ACHC

Losers: ZG

None.



Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consider consulting a financial professional before making investment decisions.