The market ended last week on a down note as top-heavy tech stocks posted sharp declines despite an encouraging August jobs report.
The U.S. tech sector comprised a large portion of the market’s gains over the past few months, but traders are starting to cool off on the potentially over-extended tech rally. The NASDAQ posted a 3.3% loss last week thanks to widespread declines in U.S. tech stocks.
With Labor Day out of the way, the Summer vacation season is officially over in the U.S. Many analysts expect an uptick in trading volume this week as traders return from the break. Greater volume is generally a good thing, but we could see some more selling this week as returning traders adjust their positions.
Today’s featured earnings schedule includes after-the-close reports from Slack [WORK], Lululemon [LULU], and Coupa Software [COUP].
Here’s what’s moving the market this morning:
Tesla Motors (TSLA)
Tesla dropped sharply in the pre-market after the S&P Index Committee passed over the company for inclusion into the S&P 500. Last Friday, the committee opted to add Etsy (ETSY), Teradyne (TER) and Catalent (CTLT) to the index over the nation’s leading electric vehicle manufacturer. However, Tesla is up 400% YTD and has reported consistent profits as of late, so there’s a good chance it will join the large-cap index this quarter.
The story seems innocuous enough, but TSLA is posting sharp declines on the news. It’s currently the most active NASDAQ 100 stock and it’s down 10.1% in the pre-market.
Albireo Pharma (ALBO)
Albireo announced positive top-line results from a pivotal Phase 3 clinical trial. The firm says odevixibat met its two primary endpoints in a global study of the drug’s safety. Clinical trials demonstrated odevixibat’s ability to reduce serum bile acid responses and improve pruritus assessments with relatively mild side-effects in patients with progressive familial intrahepatic cholestasis, or PFIC. The firm says it plans to complete regulatory filings in the U.S. and E.U. by early 2021, at the latest. Albireo also plans to conduct another study that will evaluate the drug’s ability to treat Alagille syndrome by the end of 2020, and it’s enrolling patients for another Phase 3 study to test its effectiveness as a treatment for biliary atresia.
ALBO is one of this morning’s top movers with a 68.1% gain.
Finnish telecom giant Nokia is sliding in the pre-market after the firm lost its bid to supply Verizon (VZ) with 5G network equipment. Samsung Electronics (SSNLF) beat out Nokia to win the the $6.64 billion contract. Nokia’s recently-appointed CEO says Verizon is still a top-three global customer.
The news could be a signal that the tides are changing in the 5G sector. Swedish telecom companies Nokia (NOK) and Ericsson (ERIC) could lose favor over the next few months if Samsung continues to snatch up big contracts.
NOK is trading actively in the pre-market and it’s down 5.8% on the news.
InspireMD has received an Investigational Device Exemption (IDE) for its CGuard™ Carotid Stent System. The device is designed to prevent stroke caused by carotid artery disease (CAD), and the FDA has given the firm the green light to proceed with a crucial study into CGuard™’s viability as a stroke prevention measure. According to InspireMD’s CEO Marvin Slosman, CGuard™ is “a cornerstone of the company’s global expansion plans.”
This is a big breakthrough for the InspireMD, and the market is bullish on the news. NSPR is one of the morning’s top gainers with a 43.7% advance.
Corbus Pharmaceuticals (CRBP)
Corbus is crashing in the pre-market after data from recent Phase 3 trials missed expectations. The study evaluated lenabasum as a treatment for cutaneous systemic sclerosis (SSc), a rare and life-threatening disease which currently has no FDA-approved treatments. Unfortunately, top-line data showed no significant differences between patients treated with lenabasum and placebo.
Corbus CEO Dr. Yuval Cohen: “We are surprised and deeply disappointed that the RESOLVE-1 trial did not meet its primary endpoint… We now look forward to upcoming topline results from our study of lenabasum in patients with cystic fibrosis.”
Mr. Cohen might be optimistic about the drug’s chances at the next round of trials, but the market is bearish on the news. CRBP is getting destroyed in the pre-market on active trading volume. Shares are currently down a whopping 73.5%