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Stock index futures slump as concerns on health of regional banks rattle sentiments. (00:23) Novo Nordisk (NVO), Eli Lilly (LLY) slide after Trump pledges ‘much lower’ Ozempic price. (01:46) Ford (F) to recall nearly 625K vehicles over camera display, seatbelt issues. (02:32)
This is an abridged transcript.
We’re starting the show off this morning with a check of futures which are in the red on this Friday as traders grow concerned about the health of regional banks.
S&P 500 futures (SPX) -1%, Nasdaq 100 futures (US100:IND) -1.2% and Dow futures (INDU) -0.75%.
Wall Street’s major averages also closed lower on Thursday.
Bank stocks are also on our biggest movers list this morning. The list typically includes gainers and losers, we have all losers at this early hour.
“An initially positive risk mood turned during the U.S. session yesterday after news that Zions Bancorp made a $50M charge-off, while Western Alliance alleged it also suffered from fraud on loans to the same borrowers…. While this was an ostensibly isolated story at two banks, each with less than $10bn market cap, the event drew inevitable comparisons to the regional bank stress that followed the collapse of SVB in March 2023,” Deutsche Bank’s Peter Sidorov said.
This is the topic of today’s edition of the Wall Street Breakfast newsletter. A link to sign up for the newsletter is in the show notes section. The working title of today’s editions of the newsletter is, “Bank Credit Cockroaches” which refers to comments made by JP Morgan Chase CEO Jamie Dimon.
Novo Nordisk (NVO) is down 4% in early trading after President Trump said on Thursday that the price of the company’s top-selling weight-loss medication would be reduced.
Trump made the comments during a White House event on fertility treatments and drug pricing, as per reports.
Bloomberg News is reporting that he said the price of the diabetes drug Ozempic could come down to just $150 a month.
The U.S. list price of Ozempic, which Trump called “the fat loss drug,” is roughly $1,000 for a month’s supply. Trump told reporters on Thursday that the cost of the drug, made by Novo, will soon be “much lower.”
Eli Lilly (LLY), which sells similar treatments, including Mounjaro and Zepbound, is down 5% premarket.
Ford (NYSE:F) is recalling nearly 625,000 vehicles in the U.S. due to issues with seatbelts and rear-view camera displays.
According to the National Highway Traffic Safety Administration (NHTSA), the recall includes 332,778 Ford Mustang cars for seatbelt concerns and 291,901 F-250, F-350, and F-450 Super Duty trucks for faulty camera displays.
To address the camera issue, Ford dealers will update the image processing module software free of charge. For the seatbelt-related recall, dealers will inspect and replace affected components if necessary and remove carpet sections that may interfere with seatbelt cables, the agency said.
What’s Trending on Seeking Alpha:
Chinese carmaker BYD to recall record number of cars over design, battery issues
Spirit Airlines to furlough 365 pilots, demote 170 others next year – report
U.S. Chamber of Commerce sues Trump admin over $100,000 H-1B visa fees
Dow, S&P and Nasdaq futures are in the red. Crude oil is down 1.1% at $56/barrel. Bitcoin is down 2.8% at $105,000. Gold is up 0.3% at $4,340.
The FTSE 100 is down 1.5% and the DAX is down 2.1%.
The biggest movers for the day premarket: Micron Technology (NASDAQ:MU) -4% – Shares slid following a report that the company plans to halt sales of server chips to data centers in China, following a prolonged business slump linked to Beijing’s 2023 ban on its products in critical infrastructure.
On today’s economic calendar:
And it’s Friday so that means it is quiz day. The news quiz is released every Friday at 5am eastern time. Passports, fast food and a third bubble are just a few of the topics in this week’s edition of the news quiz. A link to the quiz is in the show notes section.
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