Wall Street Breakfast Podcast: 23andMe Receives New FDA Green Light

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This is an abridged transcript of the podcast.

The US FDA has given 23andMe (NASDAQ:ME) clearance to report an additional 41 variants in BRCA1 and BRCA2 genes that are associated with higher risk of certain cancers.

ME is up nearly 16% in pre-market trading.

The variants are linked to a higher risk of breast, ovarian, prostate, and pancreatic cancers.

The additional variants will be added to the company's Genetic Health Risk Report.

The FDA also granted 23andMe (ME) a Predetermined Change Control Plan (PCCP).

This permits the company to add more BRCA1 and BRCA2 variants and other cancer risk information to its report without the need for a premarket review.

United Parcel Service (NYSE:UPS) is reportedly looking to cut the number of pilots from its payroll through retirement package offers.

In an e-mailed statement sent on Thursday, UPS (UPS) confirmed that it is offering a voluntary separation benefit to eligible pilots.

UPS noted that it regularly assesses its operations and makes adjustments to better serve customers.

The retirement offer to pilots includes a comprehensive compensation package, consisting of both cash and healthcare benefits.

UPS (UPS) has a goal to see 167 pilots take the compensation package.

The Atlanta-based company has not reduced its pilot workforce since 2010.

Cannabis stocks have been rallying on reports that the drug could be reclassified as less risky.

But Bernstein said in a note that a reclassification of cannabis by the US government from a Schedule I to a less risky Schedule III drug is not the preferred outcome for many cannabis producers and investors.

While the classification would loosen some restrictions on cannabis sales, a Schedule III designation would still mean it was a controlled substance.

The investment bank said the designation would also mean cannabis would be viewed more as a medical product and could prevent it from being treated as a consumer packaged good, which would limit its addressable market.

The analysts wrote in their note, “Many cannabis producers, investors and consumers would rather have outright de-scheduling, which would allow cannabis to be treated and therefore sold along the lines of alcohol,” adding that de-scheduling could also allow for looser marketing and branding regulation.

Earlier this week it was reported that the HHS recommended to the DEA that cannabis be reclassified as a Schedule III substance. However, this does not make it final.

Despite still being considered a controlled substance, Bernstein said that reclassifying cannabis as a Schedule III drug could resolve one headache for US multi-state operators, Section 280E of the federal tax code.

Section 280E prohibits businesses from taking certain deductions if they are associated with the sale or distribution of Schedule I substances.

Other headlines to look out for on Seeking Alpha:

Fresh stimulus from China to bolster crisis-hit property sector

Aditxt stock drops 48% on $10M private placement

Li Auto sales rose 663.8% Y/Y in August

Ford Motor offers UAW workers a 15% combined wage raise

U.S. stocks on Thursday stumbled through a largely muted session to end mixed.

The Nasdaq (COMP.IND) closed 0.11% higher while the S&P 500 (SP500) ended marginally lower by 0.16%. The Dow (DJI) slipped 0.48%.

Of the 11 S&P sectors, seven ended trading in the red, led by Health Care and Utilities. Consumer Discretionary and Tech topped the gainers.

Treasury yields were marginally lower on Thursday. The 10-year yield (US10Y) was down 2 basis points to 4.10%, while the 2-year yield (US2Y) was also down 2 basis points to 4.86%.

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 green. The Dow is up 0.4%, the S&P 500 is up 0.3% and the Nasdaq is up 0.2%. Crude oil is up 1% at more than $84 a barrel. Bitcoin is down 4.3%.

In the world markets, the FTSE 100 is up 0.4% and the DAX is down 0.05%.

On today’s economic calendar, at 8:30am the jobs report and at 9:45am the Fed's Loretta Mester will at the “Inflation: Drivers and Dynamics 2023 Conference.”