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Dell, HP (HPQ), Foxconn (OTCPK:FXCOF) and others to get subsidies to make IT hardware in India. (00:23) SEC charges Kraken for operating as unregistered crypto exchange. (01:23) Texas AG sues Pfizer (PFE) for alleged Medicaid fraud over ADHD meds. (02:23)
This is an abridged transcript of the podcast.
India will provide subsidies to nearly 30 tech companies, including Dell (NYSE:DELL), HP (NYSE:HPQ), Lenovo (OTCPK:LNVGY), Foxconn (OTCPK:FXCOF), Asus (OTCPK:ASUUY) and Acer (OTC:ACEYY).
This is happening under a production-linked incentive scheme for IT hardware aimed at boosting domestic manufacturing.
According to a government statement, the 27 companies are expected to invest ~$359.9M, with the value of IT hardware production estimated at $42B.
India’s minister for electronics and IT Ashwini Vaishnaw said 23 companies are ready to start manufacturing from day-zero.
The move is part of Prime Minister Narendra Modi’s push to make India a global hi-tech manufacturing hub. The PLI scheme covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.
These subsidies come at a time of heightened scrutiny of Chinese companies in India, on account of geopolitical tensions between China and India.
The U.S. Securities and Exchange Commission on Monday charged cryptocurrency exchange Kraken for allegedly commingling customer money with its own while operating as an unregistered securities exchange, broker, dealer, and clearing agency.
The regulator’s complaint accused San Francisco-based Kraken of making hundreds of millions of dollars unlawfully facilitating the trading of crypto asset securities since at least September 2018.
The director of the SEC’s Division of Enforcement, said in a statement that Kraken’s decision to do this “resulted in a business model rife with conflicts of interest that placed investors’ funds at risk.”
The suit echoes the SEC’s charges against fellow trading platforms Binance and Coinbase (COIN) made earlier this year.
The complaint against Kraken, filed in federal district court in San Francisco, seeks injunctive relief, conduct-based injunctions, repayment of ill-gotten gains plus interest, and penalties.
The Office of the Texas Attorney General is suing Pfizer (NYSE:PFE), Tris Pharma and its CEO Ketan Mehta for allegedly defrauding the state’s Medicaid program.
The suit says they did this by providing improperly manufactured drugs to children enrolled in the program for attention deficit/hyperactivity disorder, or ADHD.
Ken Paxton’s office said in a release Monday afternoon that Pfizer had contracted with Tris to produce the ADHD drug Quillivant XR. Paxton’s office alleges that Tris and Pfizer then manipulated testing of the product for several years “to hide poor manufacturing practices and defraud the Texas Medicaid program.”
The AG’s office said that during that time, families complained the medication wasn’t working. The office added that Pfizer and Tris allegedly benefitted from the “misrepresentations and concealments” by obtaining taxpayer-funded Medicaid reimbursement for the medication.
According to the complaint, the plaintiffs, which include the State of Texas and Tris’s former head of technology, are seeking monetary relief in excess of $1M.
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On our catalyst watch for the day,
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MDU Resources Group (MDU) will host an investor day event at the New York Stock Exchange. Management plans to give updates on operational strategy and the company’s financials.
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9:00 a.m. Lowe’s (LOW) will hold its earnings conference call. In addition to Home Depot, stocks with a high degree of trading correlation with Lowe’s on earnings day are Floor & Decor (FND), RH (RH), and Tractor Supply (TSCO).
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5:00 p.m. Nvidia (NVDA) will hold its earnings conference call. Options trading implies a share price swing of 8% for the stock after the earnings release. Over the last year, the stock that has correlated the tightest to Nvidia on earnings day is Marvell Technology (MRVL).
U.S. stocks on Monday extended a three-week win streak that has seen the benchmark S&P 500 (SP500) post gains in every day of November so far barring two.
The Nasdaq (COMP.IND) led gains among the main indexes, rising 1.13%. The S&P 500 (SP500) climbed 0.74%, while the Dow (DJI) added 0.58%.
Of the 11 S&P sectors, nine ended in the green, led by Tech. Utilities and Consumer Staples were the two losers.
The 10-year yield (US10Y) was down 2 basis points to 4.42%. The 2-year yield (US2Y) was up 1 basis point to 4.92%.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.16% S&P 500 is down 0.1% and the Nasdaq is down 0.03%. Crude oil is down 0.8% at more than $77 per barrel. Bitcoin is up 0.5% and still above $37,000.
In the world markets, the FTSE 100 is down 0.6% and the DAX is up 0.2%.
The biggest movers for the day premarket: Symbotic (NASDAQ:SYM) is up 23% after the company outperformed expectations in Q4 results. And MorphoSys (NASDAQ:MOR) is down 27% following Phase 3 study results for its myelofibrosis drug, pelabresib.
On today’s economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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