Plus, cryptocurrency exchange Binance was banned from operating in the U.K., the FAA said Boeing’s 777X plane isn’t ready for a significant certification step, and U.S. lawmakers are investigating Biogen’s new Alzheimer’s drug over price concerns and doubts about its effectiveness.
Stocks were mixed at the open on Monday with the Dow dropping nearly 6 points, or less than 0.1%. The S&P 500 added 0.1%, while the Nasdaq gained 0.4%.
Tesla shares are up nearly 3% this morning as investors shrugged off a voluntary recall announcement over the weekend. The recall—via a software update—to fix alleged safety issues with the driver-assistance systems in 285,520 of its Model 3 and Model Y vehicles in China. The country’s State Administration for Market Regulation said drivers could mistakenly switch on (or off) an active cruise control feature in their Model 3 or Model Y cars in certain situations causing sudden acceleration in extreme cases leading to collisions. The fix, while still deemed a recall, is a software patch and will not require Tesla owners to bring their vehicles into a service center to get the update. “Most cars have recalls, but not all car companies can offer a software patch without making you go into the physical dealership,” said Snow Bull Capital’s Taylor Ogan. “Would-be buyers may see this as an advantage over competitors.”
Bitcoin is up 4% at the time of writing to $34,485.20 even after cryptocurrency exchange Binance was banned from operating in the U.K. by the country’s markets regulator, marking the latest regulatory crackdown. Britain’s Financial Conduct Authority said over the weekend that Binance “is not permitted to undertake any regulated activity in the U.K.” Laith Khalaf, financial analyst at AJ Bell, said, “The FCA has stated that Binance is not permitted to conduct regulated activities in the U.K. Providing access to cryptocurrencies itself is not a regulated activity, but offering derivatives is, which is presumably the activity the FCA is clamping down on.”
Boeing shares are down 3% after the FAA told the airplane manufacturer that its planned 777X is not yet ready for a significant certification step and warned it “realistically” will not certify the airplane until mid to late 2023. The FAA cited a number of issues in rejecting a request by the manufacturer to issue a Type Inspection Authorization (TIA) Readiness, including a lack of data and the lack of a preliminary safety assessment for the agency to review. Boeing said it “remains fully focused on safety as our highest priority throughout 777X development. As we subject the airplane to a comprehensive test program to demonstrate its safety and reliability, we are working through a rigorous development process to ensure we meet all applicable requirements.”
U.S. lawmakers said late Friday that they will investigate the approval and pricing of Biogen’s Alzheimer’s drug, Aduhelm (aducanumab), amid concerns over its price and doubts if the clinical evidence proves the drug’s effectiveness. The drug, which is the first approved treatment to attack a likely cause of Alzheimer’s, was approved earlier this month and has a list price of $56,000 per year. “We have serious concerns about the steep price of Biogen’s new Alzheimer’s drug Aduhelm and the process that led to its approval despite questions about the drug’s clinical benefit,” the House Committee on Oversight and Reform said in a statement.
And shares of Electric Last Mile Solutions popped in their trading debut today, making it the latest speculative electric vehicle start-up to go public via SPAC mergers. The company plans to begin production of a small electric commercial van at a factory in Indianan this fall in, and now trades on the Nasdaq with the ticker symbol ELMS. “We require much less capital,” said ELMS CEO James Taylor, a former executive with General Motors. “We have a break-even point much earlier and, frankly, our plan from day one has been very, very conservative. Our overall risk is much, much lower than the other entrants in this space from an EV standpoint.”
Stocks We’re Watching
Avinger Inc (NASDAQ: AVGR): Commercial-stage medical device company Avinger announced today key opinion leader (KOL) presentations featuring the company’s Lumivascular technology at two important vascular conferences held in Germany: the annual German CLI Congress and the Essen Vascular Conference. Dr. Arne Schwindt, a vascular surgeon from St. Franziskus Hospital Münster in Germany, said of Avinger’s Lumivascular technology, “More traditional treatment methods like ballooning and stenting have their merits, however between 10% and 40% of patients treated with a stent experience restenosis and recurrence of symptoms within the first year. If these treatment failures lead to CLI, options are limited. Lumivascular atherectomy with Pantheris provides the tool to clean occluded stents under visual guidance and recover patients from CLI. We are very pleased with the clinical results post-treatment, and I believe that patients will benefit from this treatment modality using Avinger’s on-board imaging atherectomy device.”