Novo Nordisk shares continued to recover from last week’s stumble as more investors buy into the long-term story for its obesity drug franchise. The U.S.-traded shares were up 3% in trading on Monday.

Last week, the stock sold off as the company said it was once again limiting supplies of starter doses of Wegovy to make sure it can serve existing patients. New patients taking the weight-loss medication titrate to the drug’s full dose in order to limit any potential side effects. Robust demand for the GLP-1 medication has led to periodic shortages since its launch.

—Christina Cheddar Berk

Zscaler rallied nearly 20% after the cloud security company issued strong preliminary earnings and forward guidance.

The company reported preliminary third-quarter revenue between $415 million and $419 million, ahead of its prior expectation of between $396 million and $398 million. That’s also above the consensus estimate of $397.4 million from analysts polled by FactSet.

Preliminary non-GAAP operating income was also stronger than anticipated, with the company setting a range of $60 million and $64 million. That topped Zscaler’s prior guidance of between $55 million and $56 million, as well as the FactSet analyst forecast of $55.6 million.

Billings came in between $478 million and $482 million, beating the estimate of $448.8 million compiled by FactSet.

The company also raised forward guidance. The company upped its expected revenue for the full year to come in between $1.587 billion and $1.591 billion, while analysts expect $1.56 billion. Non-GAAP operating income is now expected to be between $220 million and $224 million for the year, above FactSet’s $213.2 million forecast from analysts. Zscaler anticipated full-year billings to now fall in the range of $1.97 billion and $1.974 billion, topping Wall Street’s $1.94 consensus estimate.

— Alex Harring

Berkshire Hathaway B shares climbed 1.7% in early trading, set to add to their 5% gain so far this year. Investors cheered a strong earnings report, driven by a rebound in Berkshire’s insurance business, especially Geico.

The auto insurer saw a big turnaround in the quarter, returning to an underwriting profit of $703 million. Ajit Jain, Berkshire’s vice chairman of insurance operations, said Saturday that auto insurer Geico is “taking the bull by the horns” to improve the use of telematics.

— Yun Li

The Dow rose about 60 points at the open, while the S&P 500 gained 0.1%. The Nasdaq Composite dipped slightly.

— Fred Imbert

The S&P 500 has had a strong end of spring into early summer period over the past decade years, led up by health care stocks.

The broad index has gained an average of 5% between May 5 and Aug. 5 when averaging the three-month period over the last 10 years, according to data analyzed by Bespoke Investment Group.

Health care stocks have typically led the index higher, gaining 7.2% on average in the time period over the last decade. The S&P 500’s real estate and technology sectors have also historically outperformed when averaging the 10 three-month periods, with each advancing 5.8% in a typical period.

Energy is the only S&P 500 sector to have an average loss in this three-month trading period. When comparing returns from the last 10 years, the sector has ended down a modest 0.1% on average.

— Alex Harring

Here are some of the names making the biggest moves in the premarket:

• Fortinet — Shares gained 3.7% after being Bank of America upgraded the cybersecurity company to buy from neutral. The Wall Street firm cited Fortinet’s solid execution and strong underlying demand.
• Tyson Foods — The stock fell nearly 10% after the food production company cutting cut its annual sales outlook and posted an unexpected loss for its latest quarter, according to FactSet. Tyson also warned of a 4% decrease from the previous year in domestic beef production and flat pork production.
• Estee Lauder — Shares popped 5.6% in premarket trading following a report from the New York Post that activist investor Nelson Peltz was contemplating a “possible shakeup” at the beauty products company.

To read more names making moves in the premarket, read the full story here.

— Michelle Fox

Aluminum producer Alcoa’s shares jumped 2.3% Monday during premarket trading after JPMorgan initiated coverage with an overweight rating. The firm’s price target of $54 implies shares rallying more than 49% from Friday’s close. 

“Our view rests on a positive aluminum price outlook, given supply constraints and the commodity’s strong secular growth trends, which can help fund shareholder returns and future growth initiatives,” analyst Bill Peterson wrote in a Monday note. “

CNBC Pro subscribers can read more about his call here.

— Hakyung Kim

Shares of Occidental Petroleum dipped more than 1% in premarket trading Monday after Warren Buffett said Berkshire Hathaway doesn’t plan on taking full control of the oil giant.

“There’s speculation about us buying control, we’re not going to buy control,” Buffett said at Berkshire’s annual shareholder meeting. “We wouldn’t know what to do with it.”

The “Oracle of Omaha” has amassed a stake of 23.5%, while receiving approval to purchase up to 50% of the company. Many had been speculating that Buffett would eventually acquire the whole company.

— Yun Li

Investors cheered PacWest cutting its dividend, with the stock surging more than 30% in the premarket Monday.

The regional bank said late Friday it reduced its dividend to just 1 cent per share from 25 cents per share.

“Given current economic uncertainty, recent volatility in the banking sector and potential changes in regulatory capital requirements, we view reducing the dividend as a prudent step to accelerate our plans to build capital,” CEO Paul Taylor said in a statement.

European indexes started the trading week on a flat footing, with traders looking ahead to more corporate earnings, economic data and a Bank of England rate decision this week.

In individual stocks news, Italy’s Banca Monte Dei Paschi rose 2.7% in early deals after a report said the Italian Treasury is open to reducing its 64% stake in the lender.

Read more here.

U.S. Treasury yields slipped on Monday, retracing some gains made after the release of better-than-expected nonfarm payrolls data.

The yield on the 30-year Treasury was down 2 basis points to 3.7420% at 2 a.m. ET. The 10-year Treasury fell 1 basis point to 3.4351%. Yields and prices move in opposite directions. One basis point equals 0.01%.

Read more here.

China’s trade surplus is expected to have eased slightly from $88.2 billion in March to $74.3 billion in April, a Reuters poll of economists showed.

Exports are forecast to have grown 8% year-on-year after growing 14.8% in March, while imports are expected to remain unchanged after declining by 1.4% year-on-year in the previous month.

The softer trade data in April is likely to reflect “residual seasonality” after this year’s Lunar New Year, economists at Goldman Sachs said in a Monday note.

“We expect the dissipation of this seasonal bias to slow export growth in April. We expect import growth to decelerate on a month-over-month basis,” economists wrote, adding that holiday-related seasonal patterns are less obviously noted in imports.

The economy is also slated to report its inflation data later in the week.

— Jihye Lee

Morgan Stanley strategist Joon Seok has made a bullish call on the South Korean market, putting a target of 2,750 on the Kospi in 2023, just over 9% from its current level of 2,520.29.

Speaking to CNBC’s “Squawk on the Road” in South Korea, Joon explains that there are three elements that investors have to look at: monetary policy, corporate earnings and the country’s capital reform initiative.

For monetary policy, the main question to ask would be when will rate cuts come, he said, given that the Bank of Korea was one of the first banks in Asia to pause its rate hikes.

As for corporate earnings, he says that in a multipolar world, Korean companies will have “more opportunities and risks,” noting that the firm is bullish on the tech materials and materials sector.

“We see that Korean tech as one of the big beneficiaries,” he told CNBC.

Joon added that South Korean companies have “preemptively adjusted” to potential problems ahead in the global supply chain, adding that they also “have a lot of intellectual property that actually helps us out.”

— Lim Hui Jie

Japan’s service sector has expanded at a record pace in April, a private survey showed.

The au Jibun Bank Japan services purchasing managers’ index was at 55.4, higher than March’s figure of 54.9 and marking its fifth straight month in expansion territory.

A reading above 50 indicates expansion in the sector, while a figure below 50 indicates contraction.

Japan’s composite PMI in April, – which combines the manufacturing and services sector figures – came in unchanged at 52.9.

This marks the fastest pace of growth since June 2022, and the fourth consecutive month the composite PMI stayed above the 50 mark.

— Lim Hui Jie

Oakmark Funds’ Bill Nygren revealed to CNBC Pro on Friday the best trade ever in his decades-long career.

Read more on why the value investor ranks this media spinoff as his top trade here

— Samantha Subin

Factset data shows S&P 500 earnings are on track for year-over-year declines, with about 85% of the benchmark index reporting results so far.

Based on the blended growth metric, EPS is on track to fall 2.4% year over year, with the materials sector seeing the largest decline at 25.7%.

Of the companies posting results, about 79% have beaten EPS expectations while a little over 74% have topped sales estimates, according to Factset

— Samantha Subin