Stock futures rose on Monday as Wall Street kicked off the second half of 2024 with the three major stock indexes nearing all-time highs.
Boeing agreed to buy back airframe supplier Spirit AeroSystems for $37.25 a share in an effort to improve manufacturing quality. The deal values Spirit Aero at about $8.3 billion, including debt. Spirit Aero was part of Boeing until Boeing sold it to a private equity firm in 2005. Spirit Aero went public a year later. Spirit Aero shares rose 6.3 percent to $34.95 in premarket trading.
Meanwhile, Boeing fell 1.2%. According to reports, the Department of Justice plans to indict Boeing on fraud charges. The decision comes after the Justice Department announced in May that Boeing violated the terms of a 2021 deferred prosecution agreement. Prosecutors plan to ask the aircraft maker to plead guilty to misleading aviation safety regulators about certain aspects of two 737 MAX crashes in 2018 and 2019, The Wall Street Journal reported.
Electric car maker Tesla rose 1.8% to $201.50 in premarket trading after its shares rose above $200 for the first time in three months on Friday ahead of the company’s second-quarter delivery numbers. The company typically reports its quarterly delivery numbers on the second day of the quarter. The latest Wall Street estimates suggest Tesla will report second-quarter deliveries of about 420,000 vehicles, down from about 466,000 a year earlier.
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U.S.-listed shares of Chinese electric vehicle maker NIO rose 7.7% after the company delivered 21,209 vehicles in June, up 98% from a year earlier. Second-quarter deliveries totaled 57,373 vehicles, up 144% from the second quarter of 2023.
Cassava Sciences, which was up 15% in premarket trading, had its shares fall 35% on Friday after a federal indictment was filed against a lead scientist who advises the biotechnology company, which is conducting Phase 3 clinical trials of a drug for Alzheimer’s disease. The indictment alleges that the company’s paid adviser, Ho-Au Yang Wang, a professor of medicine at the City University of New York, defrauded the National Institutes of Health of about $16 million in federal grant money.
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Shares of the company, which owns the Truth social media platform, rose 3.2% in premarket trading after closing down 11% on Friday. Stocks were volatile on Friday as investors digested the first election debate between President Joe Biden and former President Donald Trump, which took place late Thursday. Shares initially surged after Biden’s debate performance was seen as a weak one, but then pared gains during the trading session.
Sports apparel company Nike rose 0.4% in premarket trading after its shares plunged a record 20% on Friday after the company gave weak first-quarter and full-year earnings guidance.
Constellation Brands is scheduled to report earnings this week.
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Contact Joe Woelfel at joseph.woelfel@barrons.com.
