1. Nvidia Shares Rise After Announcement of Chip Manufacturing Compliant with U.S. Export Restrictions
Nvidia (NVDA) shares rose by 0.8% in pre-market trading after the company’s CEO Jensen Huang announced that the company will develop new products that meet U.S. export restrictions to China. These remarks come days after U.S. Commerce Secretary Gina Raimondo warned American companies against selling AI-enabling chips to China.
2. Chinese Electric Vehicle Maker Nio Plans to Spin Off Battery Production Unit
The Chinese electric vehicle maker Nio (NIO) plans to spin off its battery manufacturing division into a separate unit as early as this year. Nio reported in its latest earnings call that it will continue internal research and development for batteries but plans to skip the manufacturing process, as the company announced plans to build a battery factory that can produce enough batteries for 400,000 long-range electric vehicles. U.S. filings for Nio traded up by nearly 2% in pre-market trading.
3. AMD Shares Rise Ahead of New AI Chip Launch
Shares of Advanced Micro Devices (AMD) rose by nearly 0.7% in pre-market trading ahead of the launch of its new Instinct MI300 data center graphics processing unit chips, which are expected to generate $2 billion in sales in 2024. This launch is anticipated to increase competition with rival Nvidia, as analysts noted that AMD may use the “Advancing AI” event to compare the MI300 with Nvidia’s H100 chips.
4. Eli Lilly Announces Availability of Weight Loss Drug Zepbound
Eli Lilly (LLY) announced that the newly approved weight loss drug Zepbound is now available in pharmacies across the United States, as Novo Nordisk (NVO) faces supply shortages with its competing drug Wegovy. The pharmaceutical company also announced that Zepbound will qualify for its commercial savings card program, reducing the price for some individuals to $25 for a one-month prescription of the weekly injection for those whose insurance covers the treatment. Eli Lilly’s shares rose by 0.4% in pre-market trading while Novo Nordisk’s shares remained relatively unchanged.
5. Private Sector Employers Expected to Add More Jobs in October
ADP’s employment report, set to release at 8:15 AM Eastern Time, is expected to show that private sector employers added 128,000 jobs in November, surpassing the 113,000 jobs added in October. The U.S. productivity update is expected to show a growth of 4.9% for the third quarter, compared to the previous reading of 4.7%, when these data are announced at 8:30 AM Eastern Time, while the U.S. trade deficit for October is expected to reach $64.1 billion, higher than $61.5 billion in September.
Source: https://www.investopedia.com/5-things-to-know-before-markets-open-december-6-2023-8411291
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