Top Midday Stories: Novo Nordisk Shares Drop After Obesity Treatment Falls Short of Expectations; CFPB Sues 3 Big Banks Over Alleged Zelle Fraud

MT Newswires Live12-21 01:00

All three major US stock indexes were up around midday on Friday after the release of better-than-expected inflation data in the morning.

Monthly core inflation for November rose 0.1% compared with 0.3% in October and below expectations of a 0.2% rise, according to Bloomberg. The annual core inflation rate was steady at 2.8%, compared with expectations of 2.9%.

In company news, Novo Nordisk's (NVO) CagriSema experimental obesity therapy fell short of expectations despite meeting the primary endpoint in a phase 3 trial. The company said that at 68 weeks, those on CagriSema experienced a weight loss of 22.7%, which was below the company's expectations for the drug to deliver a 25% weight loss. Shares of Novo Nordisk fell 19% while shares of Amgen (AMGN), Eli Lilly (LLY) and Viking Therapeutics (VKTX), which are developing their own obesity drugs, were up 2.5%, 4.8% and 7.9%, respectively.

The Consumer Financial Protection Bureau said Friday it was suing the operator of Zelle, Early Warning Services, and three major banks, Bank of America (BAC), JPMorgan Chase (JPM), and Wells Fargo (WFC), for allegedly failing to protect consumers from fraud on the Zelle payment network. "The CFPB's attacks on Zelle are legally and factually flawed, and the timing of this lawsuit appears to be driven by political factors unrelated to Zelle," the company told MT Newswires in an emailed response. Bank of America, JPMorgan Chase, and Wells Fargo didn't immediately respond to MT Newswires' requests for comment.

Netflix (NFLX) and FIFA have signed an agreement for the exclusive rights in the US to the 2027 and 2031 editions of the Women's World Cup, which will be the first competition to be fully acquired by the streaming company. Netflix shares were up 1.6% in recent Friday trading.

FedEx (FDX) stock rose 1.8% after the company overnight posted higher fiscal Q2 adjusted earnings and announced plans to spin off its FedEx Freight business through the capital markets sometime over the next 18 months.

Nike (NKE) shares dropped 0.4% after the company reported late Thursday lower fiscal Q2 earnings and revenue.

Price: 268.03, Change: +6.83, Percent Change: +2.62

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