5 Things to Know Before Markets Open

The White House is looking to further tighten restrictions on China’s access to artificial intelligence chips and drugstore chain Rite Aid files for Chapter 11 bankruptcy. Here’s what investors need to know today.

1. White House Looks to Tighten Restrictions on AI Chip Exports to China

The Biden Administration is reportedly considering further tightening restrictions on China’s access to American artificial intelligence (AI) chips, adding new rules to restrictions that are set to go into effect in coming days. The additional restrictions seek to close a loophole that gave Chinese companies access to the chips through units located overseas. Shares of AI chipmaker Nvidia (NVDA) were down 2.2% in pre-market trading.

2. Drugstore Chain Rite Aid Files for Bankruptcy

Drugstore chain Rite Aid filed for Chapter 11 bankruptcy protection after it reached a deal with creditors that included restructuring to evaluate its retail footprint and close underperforming locations. The company has been struggling with slower sales, growing debt, and numerous lawsuits alleging the pharmacy helped accelerate the opioid epidemic by oversupplying painkillers. Shares of Rite Aid traded more than 4% higher in pre-market trading.

3. Pfizer Shares Drop After Cutting Revenue Forecast, Warning of Layoffs

Pfizer (PFE) shares fell 3.1% in pre-market trading after the drug maker cut $9 billion in revenue in its full-year guidance and warned that layoffs could be coming following forecasts that its sales of Covid treatment Paxlovid would come in $7 billion lower than previous guidance. Pfizer forecast full-year earnings of $1.45 to $1.65 a share on revenue of $58 billion to $61 billion, lower than the $3.29 a share in earnings on revenue of $66 billion that analysts expected to see.

4. Activist Shareholder to Push for Changes at News Corp

Activist shareholder firm Starboard Value will reportedly push for strategic and governance changes at News Corp after building a position in the media company that owns the Wall Street Journal, book publisher HarperCollins, the Times of London and online real estate site Realtor.com. Starboard’s leadership believes the company trades lower than its fair market value due to its conglomerate structure and plans to spin off its real estate division and end its dual-class share structure. Shares of News Corp (NWSA) traded 1.8% lower in pre-market trading.

5. EU Regulators Delay Approval of Novavax Covid Vaccine

Shares of drug maker Novavax (NVAX) plunged by more than 4% after European Union regulators delayed its approval of the company’s Covid-19 vaccine, which targets the XBB variant. The European Medicines Agency (EMA) reportedly requested more information from Novavax after it had questions over the vaccine’s potency.