What's behind Eli Lilly's down-and-up day after last week's post-earnings surge

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks pulled back from earlier-session highs amid ongoing concerns about the war in Iran. Oil prices jumped after the United Arab Emirates said its air defense system faced missile and drone attacks from Iran. WTI crude climbed roughly $3 per barrel to $105, while Brent crude jumped about $6 to $114 per barrel. Interest rates also increased, with the yield on the 10-year Treasury jumping to around 4.45% and the 30-year yield crossing above 5%, as the odds of a rate hike by year's end rose to 36% from 23% on Friday, according to CME FedWatch. We are in the camp that a Federal Reserve led by incoming Chair Kevin Warsh is more likely to cut interest rates this year than raise them, but the committee will be in a predicament the longer energy prices stay elevated. There's some profit-taking in Eli Lilly after last week's 9% post-earnings surge , but the action looked much worse earlier, when shares were down almost $15 on news tied to its oral obesity drug Foundayo. The Food and Drug Administration said in its Adverse Event Reporting System (FAERS) that one patient experienced liver failure following use of Foundayo. Around the time the FDA approved the medication in April, the regulatory agency asked the company for more safety data, including information on liver injury. …