Skip to main content

Nvidia, Biogen and Tesla - 5 Things You Must Know Tuesday

Stock futures are mixed as traders assess the impact of rising inflation; Biogen soars after its Alzheimer's drug gets FDA clearance; Nvidia asks Chinese regulators for approval of Arm acquisition.

Here are five things you must know for Tuesday, June 8:

1. -- Stock Futures Mixed as Wall Street Assesses Impact of Rising Inflation

Stock futures were mixed Tuesday as traders looked for clues on what impact rising prices pressures may have on the Federal Reserve's support for a U.S. economy recovering from the COVID-19 pandemic.

Futures slumped after major global websites such as The New York Times, Amazon and Bloomberg suffered major outages but pared those losses after the sites came back online.

Contracts linked to the Dow Jones Industrial Average fell 11 points, S&P 500 futures were up 6 points and Nasdaq futures rose 58 points.

The Labor Department will release a report on consumer prices for May on Thursday. The CPI report will be one of the last major economic indicators before the Fed meets on June 15-16.

Prices on everything from food to gas to lumber have been rising and the fear in the market is that rising inflation will push the Federal Reserve to begin tapering asset purchases and boost interest rates sooner than expected.

Stocks finished mixed on Monday as Wall Street weighed inflation risks and the implications of a global tax agreement on the biggest U.S. tech companies.

2. -- Tuesday's Calendar: JOLTS Report, UiPath Earnings

The U.S. economic calendar on Tuesday includes International Trade in Goods and Services for April at 8:30 a.m. ET and the Job Openings and Labor Turnover Survey for April at 10 a.m.

Earnings reports are expected Tuesday from Uipath  (PATH) - Get UiPath Inc. Class A Report, United Natural Foods  (UNFI) - Get United Natural Foods Inc. Report, Navistar International  (NAV) - Get Navistar International Corporation Report and Momo  (MOMO) - Get Hello Group Inc. Report.

3. -- Biogen Soars on Alzheimer's Drug Approval

Shares of Biogen  (BIIB) - Get Biogen Inc. Report edged higher in premarket trading Tuesday after soaring as much as 64% on Monday following the Food and Drug Administration's approval of aducanumab, the company's highly anticipated Alzheimer's disease drug.

Biogen shares rose 0.22% in premarket trading. They finished Monday at $395.85, a gain of 38.34%.

The FDA's approval makes the drug, marketed under the name Aduhelm, the first new treatment for Alzheimer’s disease in nearly two decades. The FDA granted the antibody therapy an accelerated approval, meaning Biogen has to conduct another clinical trial.

Aduhelm will cost $56,000 a year.

Biogen CEO Michel Vounatsos told CNBC that he thought the drug’s price was “fair” but also vowed the company wouldn't hike its price for four years.

Scroll to Continue

TheStreet Recommends

Cramer's Mad Money Recap: T-Mobile, Biogen

4. -- Nvidia Reportedly Asks Chinese Regulators for Approval of Arm Deal

Nvidia  (NVDA) - Get NVIDIA Corporation Report has submitted an application to Chinese competition regulators to review its proposed $40 billion takeover of U.K. chip designer Arm, according to the Financial Times.

Nvidia announced the deal about eight months ago. The chip company said it expects to close the deal by next March.

Nvidia's application was made in recent weeks and sets in
motion a period of scrutiny that could take up to 18 months,
according to Chinese antitrust lawyers, the Financial Times reported.

In February, U.S. federal regulators opened an investigation into Nvidia's agreement to purchase Arm.

A consortium made up of Alphabet's  (GOOGL) - Get Alphabet Inc. Report Google, Microsoft  (MSFT) - Get Microsoft Corporation Report and Qualcomm  (QCOM) - Get QUALCOMM Incorporated Report, among others, reportedly asked antitrust officials to intervene in the sale, Bloomberg previously reported. At least one of the companies wanted the deal "killed."

The group argued the $40 billion deal would grant Nvidia control over a critical supplier that licenses essential chip technology to companies such as Apple  (AAPL) - Get Apple Inc. Report,  (AMZN) - Get Inc. Report, Samsung and Huawei.

Nvidia, Alphabet, Microsoft, Apple and Amazon are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

5. -- Tesla's Head of Heavy Trucking Departs

Jerome Guillen, president of Tesla's  (TSLA) - Get Tesla Inc. Report heavy trucking division and the executive in charge of the company's Semi electric trucks, has left the company.

Guillen transitioned to president of Tesla Heavy Trucking in March from his role as president of Automotive at Tesla. Guillen had spent nearly 11 years at Tesla. 

Tesla CEO Elon Musk often has credited Guillen for his significant contributions to the Tesla Semi, which is expected to launch this year.

Pierre Ferragu of New Street Research said Guillen's departure was a "huge and unexpected loss, but it should be put into the perspective of Tesla's model: very high turnover amongst extreme talents is part of it and is the way the company gets the best out of these extreme talents."

Tesla's China deliveries, meanwhile rebounded in May from April, rising 29% to 33,463, according to China’s Passenger Car Association.

Tesla rose nearly 3% in premarket trading Tuesday to $621.64.