Key Takeaways
- Roche (RHHBY) shares rose as much as 2.2% after its experimental lung cancer pill, divarasib, outperformed two FDA-approved drugs in a pivotal Phase III trial.
- Goldman Sachs (GS) issued a major price target hike for Delta Air Lines (DAL), raising it from $80.00 to $116.00, citing robust demand and pricing power.
- Iraq successfully exported 800,000 barrels per day (b/d) of crude oil in June, marking a significant recovery in northern exports via the Kurdistan-Turkey pipeline.
- Bank of America (BAC) analysts warned that while inflation data may be revised lower, the underlying economic story remains "sticky," leading the bank to forecast three Fed rate hikes later this year.
Healthcare: Roche Hits Major Milestone in Lung Cancer Treatment
Swiss pharmaceutical giant Roche (RHHBY) announced Thursday that its experimental pill, divarasib, met its primary objectives in the Krascendo 1 Phase III trial. The drug, designed to target the KRAS G12C mutation, demonstrated superior progression-free survival compared to currently approved treatments sotorasib (Amgen) and adagrasib (Bristol-Myers Squibb).
Analysts at Jefferies estimate the market opportunity for the drug could reach 1 billion to 2 billion Swiss francs ($2.5 billion) annually as a second-line treatment. Roche (RHHBY) plans to submit the data to global health authorities for regulatory approval as soon as possible, aiming to establish a new standard of care for non-small cell lung cancer.
Aviation: Goldman Sachs Bullish on Delta's Momentum
Goldman Sachs (GS) analyst Catherine O'Brien significantly raised the price target for Delta Air Lines (DAL) to $116.00, representing a substantial increase from the previous $80.00 target. The firm maintained its Buy rating, highlighting that strong demand momentum from earlier this year has persisted despite fare increases implemented to offset fuel costs.
The upgrade follows a period of outperformance for Delta Air Lines (DAL), which has seen its stock gain approximately 80% over the past year. Market sentiment remains positive as the carrier continues to leverage its premium-focused business model and strong corporate travel bookings to drive margins higher than its industry peers.
Energy: Iraq Diversifies Export Routes Amid Regional Tensions
Iraq reported crude oil exports of 800,000 b/d in June, a figure that includes significant volumes from its northern fields. The state oil marketer SOMO indicated that the country is successfully expanding its northern capacity, aiming to reach 770,000 b/d via the Kurdistan-Turkey pipeline to mitigate risks associated with the Strait of Hormuz.
This increase comes as Baghdad pushes for a higher OPEC production quota to alleviate domestic revenue pressures. Recent reports suggest that roughly 14 million barrels of Iraqi oil previously trapped in the Persian Gulf have recently escaped toward global markets following an easing of transit tensions.
Economy: BofA Forecasts Harder Path for Fed
In its latest "Morning Market Tidbits," Bank of America (BAC) suggested that while upcoming inflation revisions might show a downward trend, the "underlying story" of a resilient labor market and persistent core inflation hasn't changed. The bank has made a sharp reversal in its policy outlook, now predicting three quarter-point rate hikes in September, October, and December 2026.
Bank of America (BAC) CEO Brian Moynihan noted that high interest rates currently reflect the "strength of the US economy" rather than a recession signal. However, the bank warned that the "easy-money trade" is likely over, as the Federal Reserve shifts from a "higher for longer" stance toward active tightening to restore price stability.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.