5 things to know before the markets open

Electric truck maker Lordstown Motors is filing for bankruptcy and online brokerage Robinhood is cutting 7% of its workforce. Here’s what investors need to know today.

1. Lordstown files for bankruptcy after Foxconn deal falls through

Shares of Lordstown Motors (RIDE) fell more than 50% in premarket trading after the electric truck maker filed for bankruptcy amid a dispute with Chinese manufacturer Foxconn Technology. Lordstown signed a $170 million deal with iPhone maker Foxconn in November. In its bankruptcy filing, Lordstown listed $500 million in assets and liabilities, including its Endurance line of trucks.

2. Robinhood cuts 7% of its workforce in third round of layoffs

In its third round of layoffs in just over a year, Robinhood Markets (HOOD) is cutting around 7% of its full-time staff, or 150 jobs after shedding more than 1,000 positions late last year . The online brokerage is adjusting to a slowdown in customer trading activity, with the number of monthly active users falling to 11 million from its peak of 21 million. Robinhood shares traded up 0.4% pre-market.

3. US consumer confidence expected to rise for June

U.S. consumer confidence is expected to rise for June, to a reading of 104 from 102.3 in May, when the Conference Board releases the data today at 10 a.m. ET. Also today, the Census Bureau is expected to report that May new home sales fell to 675,000 from 683,000.

4. Nvidia partners with data cloud service provider Snowflake

Nvidia (NVDA) said it would partner with data cloud service provider Snowflake (SNOW) to offer it generative artificial intelligence technology. Nvidia said the partnership will help Snowflake customers safely build large custom language models using their own proprietary data. Shares of Snowflake jumped 2.75% in premarket trading, while shares of Nvidia rose 0.8%.

5. Eli Lilly shares surge after weight-loss drug shows best results yet

An experimental weight loss photo from Eli Lilly & Co. (LLY) showed obese patients lost an average of 24.2% of their body weight, the strongest trial results of any treatment to date . Drugmaker Lilly is looking to take the lead in the weight loss therapy market and its shares rose 1.3% in premarket trading after the trial results were released.

Leave a Comment