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- Fed interest announcement on deck! 🚨
Fed interest announcement on deck! 🚨
Buckle up your seatbelts because it could be a volatile trading session.
Chris Dinello
March 20, 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 📈
Stocks stayed hot on Tuesday, as U.S. indexes notched modest gains for the second time this week. The Dow led, while the Nasdaq underperformed.
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Futures are sitting close to flat in early trading. Dow and S&P 500 contracts are both sitting within 0.1% of where they closed yesterday.
What to Watch Today:
The Federal Reserve will announce its March interest rate decision today. Most economists’ expect the central bank to stand pat for the month, but comments from Fed chairman Jerome Powell could still drive volatility in today’s trading session. Any indications that Powell is beginning to lean towards a more hawkish stance on rate cuts could drive sharp losses for the market today.
“Safe” investors who don’t get out of cash now could lose everything over the next six months.
For the first time that I’ve ever heard of… a bubble is about to burst on a schedule.
Yes, we know the exact date when everything is going to change in the financial markets.
When the $6 trillion bubble pops, you want to be with them.
The good news is, there’s a simple 3-step process to insulating yourself from this bubble.
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Premarket Highlights 🔎
Intel Scores $8.5B in CHIPS Act Grants, Eyes More in Loans 🚀
Intel's [INTC] bank account is set for a significant boost, with up to $8.5 billion in grants coming its way courtesy of the CHIPS Act, as the U.S. aims to solidify its semiconductor prowess on home turf.
The White House revealed this windfall, showcasing the administration's commitment to revitalizing domestic chip manufacturing.
Loans on the Horizon 💰
But wait, there's more! Intel might bag an extra $11 billion in loans under the same legislation, a move to further fuel its ambitions in semiconductor innovation and production. This financial injection is part of a broader strategy to ensure the U.S. remains a key player in the tech arena.
A Strategic Pivot 🌐
Intel, a titan in chip development for PCs and servers, finds itself at a crossroads, overshadowed by rivals in revenue and market cap.
Yet, its role in manufacturing chips within the U.S. gives it a unique edge, especially as global tensions spotlight the strategic importance of domestic production facilities.
Fabs Across America 🇺🇸
Armed with CHIPS Act funding, Intel plans expansive investments in fabs and research across Arizona, Ohio, New Mexico, and Oregon, aiming to reclaim its top-dog status in chip technology.
The Ohio fab alone, a future hub for AI chips, represents a $20+ billion venture expected to kickstart production by 2027-2028, promising thousands of jobs.
A Broader Impact 🛠
Intel's move is just one piece of a national strategy to bolster U.S. semiconductor capabilities, with other major players like GlobalFoundries and TSMC also in line for CHIPS Act support.
This collective push underscores the critical role of semiconductor manufacturing in safeguarding the country's technological sovereignty and economic security.
Featured Earnings 💰️
PDD Holdings [PDD] ... AM
General Mills [GIS] ... AM
BioNTech [BNTX] ... AM
Ollie's Bargain Outlet Holdings [OLLI] ... AM
Signet Jewelers [SIG] ... AM
Micron Technology [MU] ... PM
Five Below [FIVE] ... AM
Chewy [CHWY] ... PM
KB Home [KBH] ... PM
Alvotech [ALVO] ... PM
Economy 🏗
FOMC interest-rate decision ... 2:00p
Fed Chair Powell press conference ... 2:30p
Running Hot 🔥
Gainers
Treasure Global [TGL] >> +66.6%
NLS Pharma [NLSP] >> +16.0%
Mangoceuticals [MGRX] >> +16.8%
Decliners
Ontrak [OTRK] >> (24.6%)
Momentus [MNTS] >> (19.1%)
LifeCore Bio [LFCR] >> (17.3%)
PDD Holdings [PDD] - Last Close: $127.68
The Chinese eCommerce giant reported 123% YoY revenue growth on its fiscal Q4 2023 earnings report, released early this morning.
PDD’s top-line revenues came to US$12.52 billion for the quarter, easily crushing the $11.01 billion consensus estimates.
The company also posted a health profit of $2.40 per ADS, again topping the consensus of $1.60 by a wide margin.
PDD also noted that revenues from online marketing jumped 57% from last year, and transaction services revenues soared 357% to $6.86 billion in Q4.
PDD is a top mover with a 17.9% gain on more than 3.5 million shares traded.
My Take: This is a huge rally for a company with a market cap of $169 billion. However, PDD is still facing stiff resistance at the $150 mark, and, if it fails to break through, it could pullback a bit from its current levels.
Taysha Gene Therapies [TSHA] - Last Close: $2.25
Tiny biotech Taysha Gene is getting a boost after sharing a clinical update as part of its FY23 earnings release this morning.
Taysha said its 2023 operating loss fell to $(0.96) per share from $(3.78) per share in Q2, and it ended the year with $143.9 million in cash & equivalents.
The company also shared a promising update on its REVEAL Phase ½ examining TSHA-102, and said it should have more data in the second half.
TSHA is up 35.5% on over 2 million shares traded.
My Take: TSHA’s financials showed some signs of improvement, but I think the clinical update was the main catalyst for this morning’s rally.
Oblong [OBLG] - Last Close: $0.1350
After yesterday’s close, Oblong published its financial results for Q4 2023 and shared several operational updates with the public.
The company reported a YoY decline in revenues, but its operating loss remained flat at $1.2 million.
CEO Peter Holst also said the company is also exploring strategic partnerships & acquisitions as a means to drive growth.
OBLG is up 97.5% on around 40 million shares traded.
My Take: OBLG’s comment on partnerships & acquisitions could the driving force behind this rally. However, the stock’s small float could be amplifying the move.
Etao Intl. [ETAO] - Last Close: $0.1408
Late Tuesday, tiny healthcare services stock Etao International announced it will perform a reverse stock split next week.
Shares of ETAO will be reverse split at a 1-for-20 ratio, and the transaction will take effect on the open on March 25th.
ETAO is up 184.0% on close to 10 million shares traded.
My Take: ETAO’s reaction to this news seems overblown. There could be some market manipulation afoot here, so take care not to get caught holding the bag.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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