Chinese electric vehicle (EV) stocks continued their descent on Monday, with NIO (NIO, Financial), XPeng (XPEV, Financial), and Li Auto (LI, Financial) all experiencing significant premarket losses. This downturn follows a broader sell-off of Chinese stocks, driven by rising geopolitical tensions and concerns over deflationary forces. The Chinese EV market has been under pressure due to a fierce pricing battle among major players, squeezing margins and raising questions about overcapacity. China's vice minister of industry and information technology recently announced plans to curb the overproduction of EVs, signaling potential "forceful measures" to prevent unnecessary projects. NIO's stock has seen a sharp decline of 33.2% for the first 22 days of 2024.
Amidst a challenging environment for Chinese equities, major state-owned banks in China have intervened to support the yuan and tighten liquidity in the offshore foreign exchange market. This move comes as China's A shares and the CSI 300 index fell, prompting U.S.-listed Chinese tech stocks, including Alibaba (BABA, Financial), Baidu (BIDU, Financial), JD.com (JD, Financial), and Bilibili (BILI, Financial), to drop in premarket trading. PDD Holdings (PDD, Financial) also saw its shares slip. The Chinese stock market has been under pressure, with the country's largest brokerage suspending short selling for certain clients in an attempt to slow the market's decline. Overseas funds have reportedly sold about $1.6 billion worth of Chinese stocks.
Gilead Sciences (GILD, Financial) shares took a hit, falling 11% in premarket trading after reporting disappointing results from a late-stage trial for its drug Trodelvy in treating metastatic non-small cell lung cancer. Despite the setback, Gilead intends to explore further options and continue discussions with regulators.
ASML (ASML, Financial) shares rose over 1.2% in premarket trading following an upgrade from Bernstein, citing the stock's attractive pricing compared to peers. ASML has seen a modest 24% gain over the past 12 months, lagging behind competitors such as KLA Corp. (KLAC, Financial) and Applied Materials (AMAT, Financial).
AMD (AMD, Financial) shares gained in premarket trading despite a downgrade from Northland Capital, which suggested that the potential benefits from artificial intelligence (AI) are already reflected in the stock's current valuation.
Archer Daniels Midland (ADM, Financial) shares plummeted 14.1% premarket after the company placed its CFO on administrative leave due to an investigation into accounting practices. ADM also delayed its Q4 and FY 2023 results and withdrew all forward guidance on its nutrition segment.
China's imports of chipmaking machinery rose in 2023, reflecting the country's push to become self-reliant in semiconductor manufacturing amid U.S.-led export restrictions.
B. Riley Financial (RILY, Financial) shares tumbled 13% in premarket trading as the SEC investigates the company's dealings with a client linked to alleged securities fraud.
NuStar Energy (NS, Financial) surged 17.5% premarket after Sunoco (SUN, Financial) agreed to acquire the company in an all-stock deal valued at approximately $7.3 billion, including assumed debt.
Apple (AAPL, Financial) may face a demand drop-off for its Vision Pro headset after initial strong pre-orders, as indicated by unchanged shipping times.
Coherus BioSciences (CHRS, Financial) shares soared over 24% following a deal with Sandoz to acquire biosimilar ranibizumab, CIMERLI.
Marriott (MAR, Financial) expanded its global presence with the acquisition of the City Express brand, adding 150 properties and 17.5K rooms to its portfolio.
Blackstone (BX, Financial) made a minority growth investment in engineering and technical services firm Salas O'Brien to support its expansion in the AEC market.
CommScope (COMM, Financial) was downgraded by Bank of America due to concerns about its debt load and market trends.
Celsius Holdings (CELH, Financial) announced its expansion into new international markets, including Canada, the United Kingdom, and Ireland.
Rail Vision (RVSN, Financial) shares surged after its Main Line system received formal certifications for critical European Union railway standards.
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