bristol myers is in that place where you don't want to be in terms of big cap pharma. e interesting t ing one to me continues to be amemerck. bristol's put themselves in their own purgatory. >> if what guy says is true, and sometimes it is -- >> sometimes. >> karen, you were invested in xbi, on the prem nice they would be the takeout targets. >> right. >> true this time around, you think? because it doesn't seem like we get that sort of expected pop -- >> as opposed to ibb? >> wait, let's back up on this particular deal. they were rumored to be up for sale and the stock went up a ton, and it turned out that the ultimate price was a little bit disappointed. so, if you were in this, which i was definitely not, you did make some money, a fair amount of money. the other thing about, i mean, this is a small deal for bristol myers. to your point, they do have cash, but they have a burn right now, because that's where they are in the life cycle, but bristol myers is really trading poorly, i mean, a lot of reasons, the whole sector, but eliquis is on the medicare list. i don't

delayed no problem bristol-myers has 4% yield but i don't want to hold it.more. they're paying you to with wait. see, today the stock plunged 5% because that 4% yield is nothing next to the risk-free 5% you get from treasuries. and there was a time about 15 points ago when it seemed like ups couldn't possibly go lower here you have an iconic american company that had a 4% yield and a new contract with the teamsters union, took out a costly strike with cable, just right away but this morning ups forecasted some really nasty numbers. the stock got clobbered and now it queelds 4.7% which is neither here nor there will there be protection at 5% i don't think so the dividend trampoline can still come into play but only if we're rewarded instantly with better earnings and even then it doesn't stop a stock from going lower. when you think it would. verizon had a 5% yield would stop nothing then 6% also did nothing even when the yield got to 7% it created -- but when verizon's stock fell enough that its yield was 8% and its cash flow started improving, that and only

we continue. >>> let's turn to bristol-myers, then cantor fitzgerald bushish on the deal and new launchesf people like to go to healthcare, and bris toll is the poster child what would you do here >> this is what we like this is probably the most data dependent entity in our coverage they had a very successful r&d analyst day recently there's three drugs out there that have been approved that are probably doing better than folks expect when they report earnings, we expect them to say positive things about the trends in these three drugs. they'll also talk about the deal that they just made for $6 billion. we expect positive things to be said around there. so we have about 24% up side to this name. that's just factors in nine times forward earnings, next year's earnings. >> wow, so pretty conservative then to ameriprise, not without some drama they clawed back than banking logs only to dip 12% since since july >> you're bullish here too, right? this is one of the largest advisers in u.s. they've been developing their own a.i. programs for some time now. they're just starting to roll thousa

bristol-myers was in the market today to help find an m&a and they issued 40-year debt. right price companies are willing to do it, and there is strong demand. we are seeing strong institutional investor demand for these bonds. matt: olivia, thanks very much. she covers the corporate credit market for us. we are seeing a spike in the s&p right now, trading around session highs on stocks. you can see 4166 the level there. for jon erlichman, i am at miller. this is bloomberg. ♪ >> u.s. stocks resume winning mondays. i am scarlet fu. >> we're kicking off the closing bell in the u.s.. you are looking at the s&p 500 at session highs. the s&p 500 is up by 1.2%. even

impact virtually all of the big drug makers in the next few years drug makers including pfizer, bristol-myershnson they all have drugs in a be in the first round of negotiations, there was a legal setback for the drug companies last week in general is looking less and less likely that they will be able to get a legal injunction to stop a bone tatian of the law. i think investors expected units priced in in the industry doesn't think the companies are doing it to get out of it before it's implemented. >> my view a positive surprise for the government that is dictating price rather than the negotiation in the supreme court that may see it their way. >> that would not happen until 2026. prices already. >> what about mna outlook big pharma has 200 billion going off patent and that would be fuel for dealmaking. >> there's a lot of anxiety about the ftc on former mergers the anticompetitive and taking a close look at a lot of big deals. on the other hand amgen 28 billion-dollar of horizon was allowed to go through an industry is enthusiastic or optimistic that $40 billion acquisition will go throug

bristol-myers is very disappointing. i have to change -- the price multiple for bristol-myers is shrinking rapidly. >> as it the stock price look at that in stark contrast to the eli lillies of the world or the eli lilly of the world >> i took a picture yesterday of twinkies, the hostess twinkie, i don't know, you buy a thing of doughnuts, you only want one doughnut >> you want to do ms pick? >> no. i'm going to deny your request i will do endeavor >> you are picking the picker. >> they'll talk to picker later. james gorman and the incoming ceo of morgan stanley, ted pick. let's talk about this, the stock is up 18%. endeavor, remember, of course, most recently in the news because of the merger of its usc with wwe creating tko of which they control it. go back to the ipo, back in april of '21 i believe it was, you can see, it's not been a good performer that's including the move up today. that's frustrated ari emanuel who runs the company and maybe even silver lake, its largest stakeholder and the company that controls en

bristol-myers squibb set to acquire mirati.res closed friday at $60.20 with the company's market cap at $4.21 billion. frank. >>> silvana, thank you very much. we turn attention back to the markets now as the military conflict is lifting oil and safe haven assets like treasuries and gold and yen. let's get more from gina sanchez. she is here with me. thank you for being here. >> thank you. >> today is the first trading day since the attack over the weekend. we have seen moves to gold. what do you expect for the near term today? >> we expect a lot of volatility. some of the safe haven plays feed into rallies that are already in place. you look at the dollar. the dollar has been rallying a couple of months now. that is pretty long in the tooth. we don't know how long that will go. gold, on the other hand, has been down since may. you saw inflation turn the corner and start the downtrend. that rally could actually, you know, go for a bit longer depending on what happens. treasuries is interesting. treasuries were in the middle of

agreed to price negotiations with the federal government including johnson and johnson, merck, bristol-myers the first ten prescription drugs that will face negotiations with the federal government to determine prices for some of the most expensive medications. final prices are not expected until september of 2024. president biden called leaders of u.s. allies, the european union and nato, to convey american support for ukraine. doubts of future support were sparked. leaders meet in kyiv to show support for the war effort. the united nations security council wanted to send an armed force to haiti to combat gang violence. they will be in country for one year, the first time a force will be deployed to haiti. scott, back over to you. >>> we have more committee moves to get to. it's just one of those days. we have some action all over the shace. jo brown is selling an energy stock we'll talk about next. ( ♪ ♪ ) ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows

. >>> later this hour from bristol-myers this weekend to eli lilly last week, health care and biotech appears to be picking up. who might be next and how might investors benefit? we'll talk about that. >> we're watching shares of tesla. jeffries cut its price target from $250 to $265 implying 4% downside but that stock up 3.3%. the firm saying margin erosion in the third quarter and uncertain growth in 2024 still raises questions about the company's earlier profit edge. stay with us. since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise] >>> welcome back. we're watching shares of pepsi this morning. a beat and a raise has shares in the green. up about 1.1%. but it's

that will drastically reduce the costs for americans on medicare, johnson and johnson, merck and bristol-myers squibb have all committed to participate with the new prices going into effect 2026. the centers for medicare, medicaid services have named the first 10 drug subject to price negotiation under the inflation reduction act was passed earlier this year. they include medications to treat diabetes and arthritis. last year, roughly 9 million americans spent 3.4 billion dollars in out-of-pocket cost to pay for those medications. medicare provides health insurance coverage for 65 million. americans coming up here, arborists making sure history does not repeat itself arborist preparing for yet another wet winter. and if history is any factor here, heavy rains will take down trees as kron. 4 soon to call reports. now is the time to have your trees checked before it's too late. >> an arborist when we're climbing trees. we're working on every single branson's seeing where we see significant amount of weight. and we addressed by taking a little bit of weight off about a year ago, certified arboris

bristol-myers squibb, blood cancer drug. lauren: yeah. that's their blockbuster.l over 40% because of generic competition. hay also pushed back their timeline for their new products to hit certain metrics by one year. stock is down 3.4%. stuart: okay. think reaction to that? >> no. [laughter] lauren: moving on. stuart: something important here, amazon reporting after the bell. or what are we expecting? you're first. lauren: could we just stay a moment on the numbers, because they're tremendous. we are expecting an 11% increase in revenue to top $141 billion. that is -- in a 3-month period. and their earnings per share will rise by 24 # 4%. -- 244%. just let that sink in. >> that's huge. lauren: why? i'm going to go with same-day delivery. when you can promise paper towels or a birthday present can be on your doorstep hours after you order it, it's huge. you're going to shop at amazon more. expect them to hit 47%, their margins. stuart: you know one of the best things going for amazon is all those convenience stores which lock up the toothpaste and the shaving crea

. >> bristol myers has its own issues, but merck is another one. both stocks have not traded particularly well. feels as if, to me, there's been this move -- we're going to be in big cap pharma, we're going to be in eli lilly and novo. >> that's been the trade for over a year now. we have the clear winners, and then the other players that don't have this revenue exposure to weight loss, the street is kind of jettijettisoned. they don't want it. they want the companies to do deals, and then when they do, well, was that the right deal? they are up against the gun, diversify, do more m&a, hopefully they get create for it, but so far, they haven't. >> what makes you -- i don't know what the right word is exactly. cautious about the valuation of lilly and novo. can you not do the math in terms of getting to the valuation, in terms of the addressable market? or the run has been so fast, so quickly, i mean whaeshgs is it? because it's probably a hard case to make, i would imagine, to investors, like, jared, you told me to diversify away from lilly and her

. >> major drug companies, including johnson and johnson, merck and bristol-myers squibb are going to participate in a medicare drug price negotiations with the federal government under the inflation reduction act, medicare will be able to directly barter with drugmakers over prices for expenses, medications, driving down the high cost prescription drugs for older people. the first 10 prescription drugs that are up for negotiation have been named and they include drugs for diabetes, a blood thinners, blood cancer, drugs drug for heart failure and chronic kidney disease as well. medicare provides health insurance coverage for 65 million. people in the u.s.. new data from the u.s. census shows a large number of americans don't have enough food to eat over a seven-day period more than 26 million people say they don't have enough food and that's an 8 million percent increase compared to 2 years ago. joel berg, the ceo of hunger free america, says that cuts to the food stamp program. universal school meals and the expanded child tax credit could be contributing to the rise in the hunger 8.

that may drastically reduce the costs for americans on medicare, johnson and johnson, merck and bristol-myersibb all committed to participate. the new price is going into effect in 2026. the first 10 drugs they're subject to price negotiations under that inflation reduction act passed earlier this year, including medications the treat type 2 diabetes, unauthorized us. a recent study found some 9 million americans skipped their meds has of the billions of dollars and to pay out of pocket for them. for your health. the fda's now warning hospitals not to give premature babies. probiotics after a baby develop sepsis and died if it had been given a probiotic called last week, the fda said bacteria found probiotics might put pre-term infants at risk for fatal infections. probiotics contain live bacteria for health benefits. a commonly used as a dietary supplement. they are not fda approved. the agency is not approved any probe iconic products for infants. coming up next on the kron, morning news, we're learning more information about >> injured. a woman san francisco will tell you what police say h

it will help bolster bristol-myers drug pipeline.adeable contingent value right worth up to an additional $12 a share in cash. that's part of the reason you're seeing those shares drift lower for mirati. we'll keep an eye on that $58 guaranteed cash payout price. >>> disney shares up about a percent or so. the media giant the target of activist investor nelson peltz, boosted its take in disney and is seeking multiple board seats. and we'll end on the market reverberations due to the tensions in the middle east reaching a boiling point over the weekend in reaction to those hamas attacks on israel over the weekend. israel's defense minister has ordered a complete siege of the gaza strip in an effort to cut off l electricity and food. some of the biggest upside moves in the premarket have come on oil companies like marathon oil and occidental petroleum. defense contractors have been moving higher. lockheed martin, raytheon technologies, general dynamics, as the conflict is seen as raising demand for instruments of war. some of the moves

and kwwe'll end on bristol-myers squibb, top analyst estimates on revenues bristol myers said it wouldforecasts, down 4 1/2% i'll send things over to you >> very good, dom. thank you. joining us for more on the latest earnings and market sarat sethi, a cnbc contributor, has anything changed your world view with what we have seen in the first two or three weeks of reports. >> it's interesting you, look at companies, anyone says our next couple of quarters is a little bit uncertain, you're going to see your stock sell off. you see that with meta so unless you say, hey, we're going to make our earnings the next couple of quarters. it's sell first, ask questions later, and honestly when you have a ten-year or 5%. there are other options. the short-term trade is, if i don't think the stock is going to do well for the next quarters, let's move out >> do you believe companies that say, yeah, everything's great for the next couple of quarters? it seems like there's so much uncertainty. you're sticking your neck out if you're telling me everything is great. >> you really are. it's kind of the,

. >> bristol myers,'s onkol ji company, stack was up that had soon and focus on a franchise in on ecologyt did move the stock up. hence when you got the deal, today it's not -- the deal itself does include a cdr. contingent value. at least if -- >> how about the sell sheet? >> the big one haven't typically returned what they said in the and it's a fantastic drug very early in trials and could be worth as much as 12 bucks, talking about $5.8 billion. it could be wor but bristol, jim, has got to keep doing this because el quist is coming off path. they were remember certain drugs. >> because they were nailed. >> they were failed. the expectation was this is the first of what may be a seriesias. >> i they're going go to do a lot for them. >> i held off. although we had a great pam. >> david, the who arizon formant yrnl do you think the lawyers just say you know what, the ftc, we kind of rp rp but a deal like this where in that norm less concern perhaps. andrea, from these targeted therapies in terms of specific sells in specific areas use rrk use these drugs with key interested frrnl but tha

bristol-myers was really just bad. >>> meta is something.he refs being the analysts and traders, the referredees this year has been so horrible, as much as i love the eagles, we had no penalties last week. i think the refs are looking at meta and saying, why did we sell it something involving advertising? the ray-bans that allow me to figure out what i'm thinking. >> you don't like to figure out what you're thinking. >> thank you very much there's been like a billion avatars. whatsapp, we forget that it may worth the price of admission, especially in lesser developed countries. >> you don't like that >> i got to get to kate. sam bankman-fried's trial, remember that? that's resuming today. kate is in manhattan, and can bring us up to date on what we expect kate >> reporter: david, good morning. the jury is back in the courthouse this morning after a pretty unusual detour yesterday. sam bankman-fried did get up on the stand, but no jury in the room, so the judge could decide if certain topics are admissible we expect the judge to rule on that