Today’s news for June 21, 2024
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NVIDIA (NVDA) stocks fall in premarket trading on “triple witching” day, when stock options, stock index futures, and stock index options contracts expire simultaneously; Sciences of Gilead (BROWN) continues to advance after the biotech company’s study found its drug lenacapavir effective in preventing HIV in women; shares of biotechnology Sarepta Therapeutics (SRPT) soar after U.S. regulators gave broader approval to its gene therapy to treat a muscle-wasting disease; shares of fast food chain Chipotle Mexican Grill (GCM) are in focus ahead of its 50-for-1 stock split next Wednesday; and CarMax (KMX) shares gain even though the used car retailer’s quarterly results lag Wall Street forecasts. US stock futures are lower after Nvidia’s declines on Thursday ended a winning streak records for the Nasdaq and the S&P 500. Here’s what investors need to know today.
1. Nvidia extends its decline as “triple witchcraft” looms
NVIDIA (NVDA) shares fall 1.5% in premarket trading, extending Thursday’s declines that reversed the artificial intelligence (AI) chipmaker from its place as a the most valuable company in the world. Microsoft (MSFT) I got this title Thursday and its stock was little changed in premarket trading. Nvidia, whose shares are up more than 160% this year amid the frenzy for all things AI, will be particularly at the center of attention because “triple witchcraft» occurs Friday. This is the quarterly event in which stock options, stock index futures, and stock index options contracts expire simultaneously on the same trading day, which can lead to increased market volatility . Triple Witchcraft takes place on the third Friday of March, June, September and December.
2. Gilead continues to make progress thanks to the effectiveness of its HIV drugs
Sciences of Gilead (BROWN) extends its gains from Thursday, up 3% in premarket trading after the biotechnology company announced that a Phase 3 trial found its injectable lenacapavir was 100% effective in preventing HIV infection in women. Gilead said the results were so conclusive that an independent data monitoring board recommended the company end the blinded phase of the study and offer lenacapavir to all participants.
3. Sarepta Soars on Expanded FDA Approval for Elevidys
Shares of biotech Sarepta Therapeutics (SRPT) climbed 37% in premarket trading, extending Thursday’s gains, after U.S. regulators gave clearance to roll out its Duchenne muscular dystrophy treatment for wider access. THE Food and Drug Administration (FDA)) has given its approval for Elevidys to be offered to all patients aged 4 and over, after having previously authorized it only for children aged 4 and 5. The disease is “a rare and serious genetic disorder that worsens over time, leading to weakness and atrophy of the body’s muscles,” the FDA said.
4. Chipotle in focus ahead of next week’s 50-for-1 stock split
Stocks of fast food chain Chipotle Mexican Grill (GCM) are up less than 1% after a drop of 6.2% on Thursday, their largest daily percentage loss since last July. The crisis precedes a 50 to 1 stock split which takes effect next Wednesday, an event that will make the company’s shares more accessible to more investors. The stock has gained more than 40% since the start of the year and has more than doubled since the start of 2023.
5. CarMax wins even if results are lacking
CarMax (KMX) shares gained 1.2% in premarket trading, even though the used car retailer’s quarterly results lagged Wall Street forecasts. However, the company announced that it was expanding its asset-backed securitization program in order to increase its financial revenues. The company reported net revenue of $7.11 billion for the first quarter of fiscal 2025, down 7.5% from $7.69 billion in the same period of 2025. last year and below the $7.23 billion expected by analysts polled by Visible Alpha. Earnings per share (EPS) of $0.97 is also lower than the forecast of $0.98. Retail used unit sales decreased 3.1% and wholesale units decreased 8.3% from last year, “impacted by lower seasonal appreciation year-on-year.” the other,” CarMax said.
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