MUMAK SpotLight of the week: Eli Lilly and Palantir in focus

The past week once again illustrates the tension between strong corporate developments and an increasingly interest-rate-sensitive market environment. Eli Lilly and Palantir in particular provided new impulses. At the same time, Johnson & Johnson moved more into focus within the MUMAK® UMBRELLA Strategy due to its improved technical profile.

Eli Lilly published new 52-week data from the Phase 3b TOGETHER-PsO and TOGETHER-PsA studies. The combination of Taltz and Zepbound led to consistently better results than Taltz alone in patients with psoriasis or psoriatic arthritis and concurrent obesity. In both studies, the improvements achieved were maintained or further expanded through week 52, with no new safety signals emerging.

Additionally, Lilly is strengthening its immunology pipeline through the planned acquisition of Merida Biosciences. Their technology aims to specifically remove disease-causing autoantibodies and could thus open up new possibilities for Lilly in autoimmune and allergic diseases.

Already at the end of August, Mounjaro also received expanded FDA approval to reduce the risk of major cardiovascular events in certain patients with type 2 diabetes. This increasingly expands the significance of Tirzepatide beyond pure blood sugar and weight reduction.

The recent news strengthens the overall picture for Eli Lilly. It is particularly relevant that Tirzepatide is increasingly evolving from a diabetes and obesity product into a therapeutic platform with additional applications.

At the same time, expectations for growth and the pipeline remain high. The stock has reacted relatively cautiously to the recent positive news so far – an indication that a significant portion of future growth potential may already be priced into the valuation.

For the MUMAK® UMBRELLA Strategy, in addition to fundamental development, it remains particularly decisive whether the technical profile stabilizes after recent fluctuations.

At Palantir, further operational progress this week was offset by a significantly more volatile price development.

The company received a production order from the US Army for eight additional TITAN systems. Palantir is acting as the prime contractor for production and delivery. TITAN combines data from satellites, aircraft, and other sensors using AI and machine learning, underlining Palantir’s growing importance in the digitalization of military decision-making processes.

At the same time, Palantir is strengthening its commercial business. Former AIG CEO Peter Zaffino is set to lead the Financial Services division starting in January 2027, further accelerating growth among banks, insurers, asset managers, and private equity firms.

On the stock market, however, it was once again evident how sensitively the high valuation reacts to changes in market sentiment. Significant price losses were followed by a strong counter-movement. Rising bond yields and concerns about additional competition from Alphabet in the AI sector caused increased fluctuations.

Fundamentally, little has changed in the Palantir story. The exceptional growth and new government contracts confirm the operational dynamics.

At the same time, the ambitious valuation remains the decisive risk factor. Recent price fluctuations show that even minor changes in interest rates, market sentiment, or competition can trigger significant price movements.

For the MUMAK® UMBRELLA Strategy, the technical picture therefore remains particularly important. The long-term growth potential remains intact, but volatility is likely to remain elevated in the short term.

Also Johnson & Johnson moved more into focus this week. The company combines a relatively defensive business model with growth in pharma and medtech, as well as a broadly positioned product and development pipeline. Furthermore, a quite remarkable analyst adjustment was helpful last week. On September 2, UBS raised the price target for Johnson & Johnson from $280 to $320 and confirmed the “Buy” rating.

Following this, the technical profile developed in a particularly interesting way.

The combination of fundamental stability, positive market sentiment, and an improved technical profile led to high alignment in the chart structure within the MUMAK® UMBRELLA Strategy.

Johnson & Johnson therefore received the RED HOT CHILI™ MUMAK of the week. 🔥📈

The decisive factor is less a single short-term price driver than the combination of defensive quality, operational stability, and new technical momentum.

Especially in a market environment with elevated valuation and interest rate risks, this combination can gain additional importance. Johnson & Johnson is currently showing an interesting balance between defensive stability and new upside potential.

Macroeconomically, inflation and bond yields remained the focus. Market participants continue to try to assess how growth and inflation will develop and what room for maneuver this gives the major central banks for their further monetary policy.

In the US, recent economic data painted a mixed picture. At the same time, statements from the Federal Reserve temporarily eased interest rate expectations and supported growth-oriented technology stocks in particular.

The next important impulse will come from the US labor market report. The development of employment, the unemployment rate, and wages should significantly influence how the Federal Reserve assesses the economic situation and the further course of monetary policy.

Especially for highly valued growth companies, the development of bond yields remains a key factor. Falling yields can support valuations, while rising yields can quickly increase valuation pressure on technology and growth stocks again.

Corporate developments remain strong, particularly at Eli Lilly and Palantir. Lilly is continuously expanding the medical and commercial potential of its key active ingredients. Palantir is winning further strategically important contracts while simultaneously opening up additional commercial markets.

With Johnson & Johnson, a significantly more defensively positioned company is also moving more into focus. The currently high alignment of fundamentals, market sentiment, and technicals made the stock the RED HOT CHILI™ MUMAK this week.

In the short term, however, the macroeconomic environment also remains decisive for the direction of the markets. Inflation, bond yields, economic data, and the interest rate policy of central banks remain central influencing factors.

From the perspective of the MUMAK® UMBRELLA Strategy, it remains crucial how fundamentals, market sentiment, and technicals interact. Adjustments within the strategy therefore remain explicitly dependent on the further development of the individual companies and their respective technical profiles.