Key Points To Watch Out For:
- Cleveland-Cliffs shares climb on US tariff hike
- Tesla drops after Chinese sales data and questions about Musk’s salary
- Moderna jumps more than 5% after approval of new Covid vaccine
Cleveland-Cliffs (CLF): Tariffs Boost Steel Producers
President Trump announced that he will double tariffs on imported steel and aluminum to 50% in a measure aimed at strengthening the U.S. metal industry. Shares of Cleveland-Cliffs, Nucor, and Steel Dynamics rose strongly in premarket trading, anticipating a direct benefit to their profit margins. Analysts say the policy will protect local producers from cheaper foreign competition.
Stellantis (STLA): Higher Cost Risks Hit Manufacturers
The impact of tariffs is also being felt by automakers such as Stellantis, which makes brands including Chrysler, Jeep, and Ram. The company cautioned that the increase in metal prices could impact its production costs in the U.S., and shares fell 3% on the Milan stock exchange. While Stellantis manufactures part of its line in North America, it continues to rely on imported materials.
Moderna (MRNA): New Vaccine Approval Boosts Shares
The U.S. Food and Drug Administration approved a new COVID-19 vaccine developed by Moderna for people over 65. This approval sent its shares up more than 5% ahead of the opening bell, amid a healthcare environment where seasonally emerging variants continue to put stress on healthcare systems. Moderna noted that its vaccine will offer enhanced and targeted protection.
Tesla (TSLA): Chinese Competition and Musk’s Salary Package in the Spotlight
Tesla faces a key week after Chinese rivals such as XPeng reported strong sales growth, intensifying pressure on the U.S. manufacturer in the competitive Asian market. Added to this is speculation about Elon Musk’s new compensation package, after the previous one was invalidated by a court. Tesla shares fell in premarket trading amid a wave of tech sell-offs.
Blueprint Medicines (BPMC): Sanofi Agrees to Buy for Up to $9.5 Billion
French biopharmaceutical company Sanofi has agreed to acquire Blueprint Medicines for up to $9.5 billion, inclusive of milestone payments. Blueprint, which specializes in immuno-oncology, has a market capitalization of over $6.5 billion. Shares rose sharply in premarket trading, reflecting interest in its clinical pipeline and precision medicine potential.
