Boeing’s Test Flight and the FDA’s Rejection: Morning Buzzers
U.S. stock futures were posting minor gains on Monday morning. The markets were calm but optimistic following strong trade data on Friday and the closure of many Asian markets due to national holidays on Monday.
Futures at 8:50 a.m.: DJIA: +0.06%, S&P 500: +0.03%, NASDAQ: +0.09%.
Novo Nordisk (NYSE:NVO), the world’s largest producer of insulin, faced serious selling pressure on Monday morning following news that the Food and Drug Administration is requesting more clinical testing for two of the company’s new products. The additional testing could delay the launch of at least one of the products, Tresiba, by three years in the United States. However, the treatments have been approved in Europe and Japan. Shares were off as much as 13.8 percent in pre-market trading.
Boeing (NYSE:BA) completed a reportedly “uneventful test flight” of a 787 Dreamliner on Saturday. The purpose of the flight was to gather additional data on the lithium-ion batteries that have a defect, which led to a fire earlier in January. So far, investigators have been unable to determine exactly what caused the problem.
Barclays (NYSE:BCS) will reportedly announce a cost-cutting plan of 2 billion pounds ($3.2 billion) on Tuesday. In line with cuts seen at other banks since the financial crisis, Barclays is expected to revamp international investment banking operations and lay off as many as 2,000 employees.
US Airways (NYSE:LCC) and AMR (AAMRQ.PK) continue to move closer to a deal worth as much as $11 billion. The merger, which could be announced as early as this week (although we’ve heard that line before), would create the world’s largest airline. The boards of the two companies are expected to vote this week after settling key differences on valuation and management structure at the new proposed entity.
Google (NASDAQ:GOOG) was off about 0.9 percent in pre-market trading as news circulated that executive chairman Eric Schmidt would sell off 42 percent of his stake in the company for about $2.5 billion. The filing indicates that the sale is part of an effort by Schmidt, who before the sale owned 7.6 million shares, to diversify his assets.