Wednesday’s First Moves: MRNA Downgrade, BA Jet Contract, JBL Earnings

Okay, let's get to some of the big moves, first moves here on Wall Street. Diane King Hall is joining me and we'll take a look at a few of the names here. Diane, welcome back. We're looking at Moderna with a sell. >> Yeah, indeed. Citigroup has slapped it with a sell rating today. It's after quite the run that Moderna has had recently off of some positive trial results. They downgraded it to a sell from neutral. At the same time, they've actually raised their price target but just up to 80. That's up from 60. So, they weren't very constructive coming into today. It implies about more than 60% downside from yesterday's closing levels. Why raise the target? But, the downgrade, they see more value in the business and they're kind of catching up with the valuation. But, they think that the stock has climbed far beyond that improvement. Driving the rally, we've seen more than 200% gain since August. That was fueled by those late-stage results that we saw with regard to personalized cancer treatment. And that was developed along with Merck. The treatment uses unique characteristics of a patient's tumor to help the immune system recognize and fight cancer. So, it was a major breakthrough on the cancer-fighting front. And this is a phase three trial. So, this is this was very good news that City said is beyond priced into this stock. They think that there is too much success priced in here essentially. They're concerned that they that the stock now in terms of valuation where it stands now assumes more success beyond this result into other cancers and they think that sales might be difficult to achieve from here. City is estimating that Moderna would need approximately 13 billion in annual oncology revenue to justify its valuation, Nicole, from here. So, the takeaway here that yes, this was a promising development here attached to this. But, the price is assuming too much from here. That's just the view from City though. >> Yeah, the valuation. I mean, I guess it's understandable when a stock's up 500 or 600% depending on what parameter you're looking at. A little pullback maybe. So, let's look at Boeing. It's had a lot of news lately. This week it's down 4%. Right now it's up. Let's talk about that. >> Yeah, but this week remember has been a difficult week so far for stocks. Difficult month. September is showing up as we kind of expected September. So, I'm sure some investors will be happy to see the door close on September and head into August. But shares of Boeing are moving higher right now. A major win for Boeing. Shares are up more than 1 and 1/2 % right now. They landed a major US Navy contract to develop this next generation fighter jet. The deal is worth more than 20 billion dollars. It calls for Boeing to develop the sixth generation fighter eventually replacing the Navy's FA-18 Super Hornets. It is another major defense win for Boeing after the Air Force selected the company last year to develop its F-47 sixth generation fighter. Northrop Boeing actually reportedly beat out Northrop Grumman in terms of this for the contract. Let me do a check on NOC shares. Those shares are down in response. So, it's a blow to Northrop Grumman, win for Boeing. Northrop Grumman down more than 3 and 1/2%. >> Yeah, Navy contracts tell the story and that's a great one. What about Jabil? We were talking this one a little bit yesterday with your Fast Market team and today here are the real earnings. Let's let's break them down. >> Yeah, it's interesting to see how the stock reacted right now. The stock is a little higher right now. In the pre-market it was under some pressure. It's fluctuating now. It's a little lower. So, we're all over the place right now. It's turning as we speak. I think investors are trying to make heads or tails out of its results. It did actually have some strong results. Revenue rose 28% to 10.6 billion. So, that beat expectations. Adjusted earnings per share coming in at 4.40 per share also a beat. They credited growth in AI [clears throat] infrastructure for all of fiscal 2026. They generated some 36 billion in revenue and 13.09 and adjusted earnings per share. Jabil we know is like a behind-the-scenes AI player. They help major companies engineer, manufacture their products. They're This is about the build-out of AI infrastructure here. Their business is span whether we're talking about automotive, healthcare, energy infrastructure, defense and aerospace, warehouse, retail automation here. So, they're kind of the you know, we think about you know, kind of the behind-the-scenes action for how this AI comes to the forefront. Jabil is a big part of that. Again, it was a clean beat, but it feels like investors are trying to decide what way they're going to take this one and now shares are moving higher by more than 1%. There were some heightened expectations going into its results and that may be why we have seen some choppiness initially here. What we're looking for now in the future here from Jabil is our customer orders translating into sustained revenue growth. So, what does the growth trajectory look like from here? Margins? Can it handle, you know, kind of more complexity while improving profitability? Those are a couple of questions that are top of mind for investors, Nicole. >> Yeah, what a big I mean, this candle is really big, too. This action early action over the unchanged line. It was, you know, down then it was up 1%. As you noted, I mean, it really is trying to find where it wants to settle here today, but it shows that continued AI demand that it continues to accelerate, they said. And they see revenue growth higher, as you noted. Thank you, Diane King Hall.