Stocks to Watch Today: CCL, LLY, and DLTR
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Stocks to Watch Today: CCL, LLY, and DLTR

In today's market, Carnival Corporation and Eli Lilly are seeing significant stock gains due to strong earnings and a groundbreaking AI partnership, respectively. Meanwhile, Dollar Tree faces regulatory challenges and stock declines.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

As the market remains active, three notable stocks are making headlines due to significant corporate developments and price movements. Carnival Corporation (NYSE: CCL), Eli Lilly and Company (NYSE: LLY), and Dollar Tree, Inc. (NASDAQ: DLTR) are each experiencing distinct shifts in their market positions, driven by earnings reports, strategic partnerships, and regulatory challenges.

Carnival Corporation (CCL) Surges After Second-Quarter Earnings Report Exceeding Expectations

Carnival Corporation’s stock is surging, up 7.69% to $17.65 as of 11:21 AM EDT, following the release of its impressive second-quarter earnings report. The cruise line operator reported record Q2 revenue of $5.78 billion, exceeding analyst expectations by $100 million. Adjusted earnings per share came in at $0.11, beating the forecasted -$0.02.

The company’s strong performance is reflected in its nearly fivefold increase in operating income to $560 million compared to Q2 2023.

Carnival has raised its full-year 2024 net yield guidance to approximately 10.25% and projects adjusted net income for 2024 at about $1.55 billion, $275 million above its March guidance. CEO Josh Weinstein expressed confidence in achieving the company’s 2026 SEA Change targets, citing strong bookings momentum for the remainder of 2024 and full year 2025.

Eli Lilly and Company (LLY) Partners with OpenAI

Eli Lilly’s stock is up 2.10% to $908.78, pushing its market capitalization to $863.709 billion. The pharmaceutical giant announced a groundbreaking collaboration with OpenAI to discover novel antimicrobials using generative AI technology. This partnership aims to combat drug-resistant pathogens and aligns with Lilly’s commitment to fighting antimicrobial resistance (AMR).

The collaboration builds on Lilly’s previous $100 million commitment to the AMR Action Fund in 2020, which aims to provide 2-4 new antibiotics by 2030.

Lilly’s chief information and digital officer hailed the partnership as a “groundbreaking step forward,” while OpenAI’s COO expressed excitement about AI’s potential in pharmaceutical breakthroughs. This news comes as Lilly continues to see success with its weight loss drug Tirzepatide, although it faces potential competition from Novo Nordisk in the rapidly growing weight loss market.

Dollar Tree, Inc. (DLTR) Stock Slides Amid Regulatory Challenges

Dollar Tree’s stock is down 1.74% to $105.48 amid ongoing regulatory challenges. The discount retailer is facing scrutiny from the FDA for continuing to sell lead-tainted children’s applesauce products almost two months after their recall. The FDA has issued a warning letter to Dollar Tree, revealing that some stores were unaware of the recall even a month after it was issued.

The FDA has confirmed 90 cases of adverse events tied to the contaminated product and has given Dollar Tree 15 days to outline how it will prevent similar issues in the future.

This latest setback adds to the company’s struggles, including previous issues such as a rat infestation at a Family Dollar warehouse. Dollar Tree is currently reviewing options for its struggling Family Dollar business, including a potential sale or spinoff. The FDA has warned of potential legal action, including product seizures if the company fails to address these concerns promptly.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.