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- Futures flat after Friday's rally 🎢
Futures flat after Friday's rally 🎢
The market is sitting close to even after Friday's rally, but which way will it go at the open?
Chris Dinello
April 08, 2024
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Let’s get ready to trade!
Markets 📈
The market rebounded ahead on Friday after a March’s jobs report came in stronger-than-expected. The Nasdaq led, as the Russ2K underperformed.
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Futures are flat in early-morning trading, although they’re leaning slightly towards positive territory.
What to Watch Today:
Last week’s jobs report prompted a positive reaction from the market, but investors are beginning to wonder if the strong data could hopes for rate cuts later this year.
The federal-funds rate futures market shows more traders are beginning to bet there will only be one to two cuts this year, which is below the Fed’s forecast for three quarter-point cuts. The market is also beginning to see more traders bet that there will be no rate cuts at all this year.
This would be bad news for most of the market, and, if it becomes the prevailing sentiment among investors, it could significantly hinder growth in the coming months.
A titan of the aerospace industry announced it would no longer purchase titanium from Russia, a key supplier.
With a global shortage of the lightweight "wonder metal" already in play, aerospace-grade titanium has become particularly scarce.
Will investors find new opportunity amid this titanium crisis?
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Premarket Highlights 🔎
🌟 Puig's IPO Set to Be the Year's Largest
Puig, the Spanish powerhouse behind iconic fashion labels like Jean Paul Gaultier and Rabanne, is poised to launch the year's most significant initial public offering. With plans to raise at least $3.25 billion through a mix of new shares and secondary offerings, Puig is setting the stage for a monumental debut on the Madrid stock exchange.
Strategic Investments 📈
The proposed share sale includes raising $1.35 billion in new equity and over $1.88 billion from existing shareholders, signaling strong confidence in Puig's market valuation. This capital boost is earmarked for refinancing recent acquisitions, including increased stakes in the Byredo and Charlotte Tilbury makeup brands, showcasing Puig's aggressive expansion in the luxury beauty sector.
Sector Impact 🌟
Surpassing the $2.56 billion IPO of Galderma, Puig's entry would crown it as the year's largest IPO, highlighting the fashion and beauty industry's pivotal role in Europe's IPO revival. While Galderma's shares experienced significant growth post-IPO, the contrasting performance of other beauty retailers like Douglas underscores the market's volatility.
Financial Performance 📊
Ahead of its IPO, Puig boasts a robust financial trajectory, with a 19% surge in net revenues to over $4.6 billion in 2023 and a 16% increase in net profits, amounting to approximately $500 million. This financial vitality reflects Puig's successful management and strategic direction, setting a high bar for its upcoming public offering.
Featured Earnings 💰️
Cue Biopharma [CUE] ... PM
Economy 🏗
None.
Running Hot 🔥
Gainers
Utime [WTO] >> +105.6%
Antelope Enterprises [AEHL] >> +22.1%
Strong Global Enterprises [SGE] >> +25.0%
Decliners
Perion Network [PERI] >> (37.1%)
22nd Century [XXII] >> (33.1%)
Mediaco [MDIA] >> (23.2%)
Apartment Income REIT [AIRC] - Last Close: $31.35
This high-end apartment operator has agreed to be acquired and taken private by Blackstone in a $10 billion deal, or $39.12 per share.
Apartment Income REIT, or AIR Communities, owns 76 rental housing communities in and around coastal markets like Miami and LA.
According to the report, Blackstone plans to invest another $400 million to improve these properties.
AIRC is up 22.3% on news of the deal, but volume is light at only 75K shares traded.
My Take: This deal is already priced into shares of AIRC so I don’t see any reason to get into this one at this late in the game.
Auddia [AUUD] - Last Close: $1.43
This morning, tiny tech company Auddia said it was awarded a “Core AI Patent” titled “Identifying Shifts in Audio Content via Machine Learning.”
The company said the technology will support its flagship fair by helping it deliver ad-free AM/FM radio stations to paid subscribers.
AUUD is up 106.2% on over 4 million shares traded in light of the news.
My Take: Anytime AI is mentioned, you can expect a stock to jump. The real question is whether AUUD can hold onto these gains, especially given its poor performance as of late.
Longeveron [LGVN] - Last Close: $2.20
After Friday’s close, Longeveron filed a Form S-1/A registration statement announcing a direct offering of up to 2.46 million shares of common stock.
Shares and accompanying warrants will be priced at $3.25 apiece, but the company didn’t clearly state an expected gross proceed in the S-1/A.
LGVN is a top mover with a 65.9% gain on over 6 million shares traded.
My Take: I am not sure why LGVN is reacting so positively to this news. It could be a short squeeze, as the stock had a 16.9% short rate as of March 15th.
U Power [UCAR] - Last Close: $4.70
The Chinese EV company will launch a commercial operation for its EV battery swapping system, according to an announcement early this morning.
U Power’s battery-swapping and sharing model for two-wheeled and light four-wheeled TVs will make its commercial debut in Wuhu, China, next month.
As part of this expansion, U Power will establish 60 power-swapping service points which will cater to over 800 customers.
UCAR is up by 71.2% and premarket trading volume is over 5.5 million at the moment.
My Take: UCAR’s short ratio is listed as 276.13% as of March 15th, so I would prepare for some significant volatility potential if you go decide to go after this one.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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