U.S. stock markets are starting to ease out of the first-quarter earnings season and into the summertime months, which means a potential return to low volume — and a seasonal drift lower. Still, Monday’s return to trading action isn’t entirely without a few juicy headlines.
As Monday morning gets into gear, Ford Motor Company (NYSE:F) is heading higher thanks to a major leadership shakeup, while Amgen, Inc. (NASDAQ:AMGN) and Lockheed Martin Corporation (NYSE:LMT) are also on the move.
Here’s a look at what you need to know this morning:
Amgen, Inc. (AMGN)
AMGN shares are headed lower this morning on some discouraging news regarding its osteoporosis drug, Evenity.
While Amgen announced that Evenity — the brand name for romosozumab — met both its two primary and key secondary endpoints in a recent ARCH study, the company also admitted that “an imbalance in positively adjudicated cardiovascular serious adverse events was observed as a new safety signal.” As a result, the FDA will want to see the ARCH data as part of its regulatory review prior to any authorization.
In turn, Amgen doesn’t expect the drug to be approved for U.S. use this year.
Evercore ISI analyst Umer Raffat said he expects the stock to lose about 3% to 4% in response. Analysts broadly believed the drug could generate $800 million annually, but Raffat is now knocking any sales potential from their AMGN price models for the time being.
Reuters reported that Leerink’s Geoffrey Porges now says romosozumab only has a 50/50 chance of survival.
AMGN stock is off about 2% this morning, cutting into roughly 7% gains for the year-to-date.
Ford Motor Company (F)
F shares — off by double digits so far this year — are rebounding by a couple of percent on the news that Ford is replacing CEO Mark Fields after three years on the job.
Fields has taken heat for the company’s woeful performance over his tenure. Ford shares have dropped roughly 40% since he took the helm on July 1, 2014, and while the past three years have been difficult for other automakers — General Motors Company (NYSE:GM) and Toyota Motor Corp (ADR) (NYSE:TM) are off roughly 10% in the same time — few have suffered the same intensity of share declines.
The New York Times outlined Fields’ difficult time at the company’s annual shareholders meeting a couple of weeks ago, facing investors who called the stock “pathetic” and “dismal.” From one shareholder account:
“Mr. Chevedden likened the online meeting to a ‘retreat into a foxhole’ by Ford’s leaders. ‘Maybe they’re hiding in Dearborn today in the basement,’ he said, referring to Ford’s corporate headquarters in Michigan.”
Ford’s stumble has accelerated this year, led lower by a number of missteps including a failed attempt to build a $1.6 billion plant in Mexico, several safety recalls and an overall decline in market share.
Ford will replace Fields with Jim Hackett, the chairman of Ford Smart Mobility LLC.
F stock responded positively to the news, with investors driving shares up by about 2% Monday morning.
Lockheed Martin Corporation (LMT)
LMT shares are making a robust move higher today amid some wheeling and dealing in President Donald Trump’s first international tour.
One of the big deals announced was a $28 billion-plus agreement between Lockheed and the Kingdom of Saudi Arabia for integrated air and missile defense systems, radar and surveillance systems, and other military products. It also includes a letter of intent to for a joint venture with Taqnia to build 150 S-70 Black Hawk utility helicopters.
Lockheed CEO Marillyn Hewson said in a release, “At Lockheed Martin, we are proud to be part of this historic announcement that will strengthen the relationship between the United States and the Kingdom of Saudi Arabia.”
Lockheed’s haul was part of some $350 billion worth of deals struck during Trump’s visit to the country. Boeing Co (NYSE:BA) also was a beneficiary, inking deals for Chinook helicopters and P-8 surveillance planes, as well as commercial airplanes to Saudi Gulf Airlines.
LMT stock is up roughly 4% in Monday’s premarket trade.
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.
