Several companies made news before the market opened, with notable movements in share prices reflecting various strategic developments and market reactions.
Nio’s U.S.-listed shares increased by more than 13% following the announcement of a significant cash injection of 13.3 billion yuan into its Nio China subsidiary. This financial boost will come partly from “strategic investors,” contributing 3.3 billion yuan, while Nio Inc. will provide the remaining amount. The transactions, anticipated to conclude by the end of the year, will result in Nio Inc.’s stake in Nio China decreasing from 92.1% to 88.3%.
Shares of Stellantis experienced a decline of over 13% after the automaker revised its full-year outlook downward, citing a worsening “global industry backdrop.” In response, Ford and GM shares also saw declines, likely from a sympathetic market reaction.
Alibaba’s stock climbed approximately 4% following an announcement from China’s central bank that it would instruct banks to reduce mortgage rates on existing home loans by the end of the next month. This news triggered a broader rally in Chinese stocks, marking their best trading day since 2008.
Rocket Lab shares rose over 3%, continuing the upward momentum from a more than 12% gain during Friday’s session. The increase was driven by a price target upgrade from KeyBanc Capital Markets, which highlighted improved confidence in Rocket Lab’s business scalability.
CVS Health saw an almost 3% rise in its stock price after The Wall Street Journal reported that Glenview Capital, a significant shareholder, was expected to meet with CVS leadership to discuss potential solutions for the company’s challenges. This meeting could signify the beginning of an activist push by the hedge fund.
Crypto stocks, including Coinbase and MicroStrategy, saw declines in premarket trading, losing 3% and 5% respectively. These decreases mirrored a similar drop in bitcoin’s value, which fell 3% to trade below $64,000. The fluctuations came as investors faced uncertainty around a potential U.S. East and Gulf Coast port strike projected for Tuesday, following notable gains in cryptocurrency prices last week.
These developments were reported by CNBC’s Lisa Kailai Han, Sarah Min, and Tanaya Macheel.
