Treasury could safeguard $17B in aid for Boeing, GE - Bloomberg

The U.S. Treasury Department is considering holding off on giving more companies access to an untapped $17B relief fund for national security businesses in case Boeing (BA +3.5%) and General Electric (GE +3%) need the money, Bloomberg reports. The loan program was created under the $2.2T Cares Act with the two companies specifically in mind, Treasury Secretary Mnuchin has said, but both have taken a pass so far, saying they do not need the government help after raising cash on Wall Street. Defense Department officials have urged Treasury to loosen the rules so that more companies could obtain loans but have yet to offer alternate criteria, according to the report

Tencent boosts stake in Nio

Nio (NYSE:NIO) is higher in AH trading after a filing by Tencent (OTCPK:TCEHY) discloses the company picked up 1.68M ADRs this month. The buying action gives Tencent a 15.1% stake in Nio. SEC Form 13D Nio is up 2.18% AH to $7.50 vs. the 52-week range of $1.19 to $7.63.

U.S. Steel weighed by stock offering, over-levered balance sheet

U.S. Steel (NYSE:X) -13.6% pre-market following news of its 50M-share offering - nearly a third of its current shares outstanding - likely at $8.58-$8.80 per share. KeyBanc analyst Philip Gibbs reiterates his Sector Weight rating but expects the stock to sell off today, telling Bloomberg that the company has a "strategic objective of taking Big River down and want to make sure with 150% accuracy that they can get through this time period. They weren't bashful about what they needed in October to go after Big River, they don't have any money and they're going to have to go out and find ways to get it." Citigroup, which rates U.S. Steel at Neutral, says it "expect(s) a negative reaction to this announcement, especially given that X shares are only down 8% YTD." BMO Capital says an equity raise "was becoming increasingly obvious... after the May debt transaction, given balance sheet leverage," and warns another equity raise is not out of the question given the company's over-levered balance sheet.