MRK and PFE are staging opposite post-earnings reactions
Pharmaceutical giants Merck & Co Inc (NYSE:MRK) and Pfizer Inc (NYSE:PFE) today reported second-quarter results. While the former beat top- and bottom-line estimates thanks in part to cancer drug Keytruda sales, it also issued a dismal annual profit outlook. Pfizer beat earnings and revenue expectations as well, but lifted its guidance for the full year.
Merck stock is down 6.2% to trade at $119.89 at last check, gapping below the $120 level that contained June and March pullbacks. Shares are also on track for their biggest single-day percentage drop since November 2021, as they chip away at their 11.4% year-to-date lead.
Pfizer stock was last seen up 1.2% to trade at $31.09, and earlier hit its highest level since November. The equity is pacing for its fourth gain in the last five sessions, and now sports a 6.3% gain for 2024.
Options traders are blasting both equities today. Options volume is running at five times the intraday average for MRK and PFE, with the weekly 8/9 117-strike put now standing out as the most active contract for the former. For the latter, the weekly 9/6 29-strike put wins out, with positions being opened at both contracts.