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4 Red-hot stocks to watch today 👀
Markets are heating up ahead of this morning's opening bell.
Chris Dinello
July 10, 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 posted mixed results on Tuesday as investors navigate widespread economic and political uncertainty. Most indexes made minor moves of less than 0.2%.
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S&P 500 futures are currently sitting just above flat with a 0.1% gain in early trading.
What to Watch Today:
Fed Chairman Jerome Powell will testify in front of the U.S. House of Representatives at 10 a.m. ET this morning. The central bank boss’s comments could spark volatility in today’s trading session, so we could see some choppy trading action today.
Gold stocks could experience significant growth if the precious metal continues its upward trend in 2024.
With a strategic focus on royalties and streaming, this company is well-positioned in Nevada, one of the world's premier gold mining regions.
As market conditions become increasingly favorable, don't miss out on learning about this promising opportunity.
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Premarket Highlights 🔎
Microsoft Drops Observer Seat on OpenAI Board Amid Regulatory Scrutiny 🔍
Microsoft [MSFT] has decided to relinquish its observer seat on the OpenAI board due to regulatory scrutiny in Europe and the U.S. over generative artificial intelligence.
Regulatory Pressures 📋
In a letter to OpenAI, Microsoft’s Deputy General Counsel Keith Dolliver stated that the observer seat provided valuable insights without compromising OpenAI's independence.
However, Dolliver added that the seat was no longer necessary as the newly formed board had made significant progress. This move comes as the European Commission investigates potential antitrust issues in the AI and virtual worlds markets, specifically scrutinizing the Microsoft-OpenAI partnership.
Antitrust Concerns 🏛
The European Commission noted in January that it was examining agreements between major digital market players and AI developers, highlighting the Microsoft-OpenAI deal.
Although the Commission concluded that the observer seat did not affect OpenAI’s independence, it is seeking additional third-party opinions. Meanwhile, Britain’s Competition and Markets Authority still has concerns about the partnership.
Background and Microsoft's Investment 💼
Microsoft took a nonvoting board seat at OpenAI in November to address questions about its interest in the startup, following a tumultuous period that saw OpenAI CEO Sam Altman briefly fired and then rehired. Altman expressed support for the partnership, emphasizing the benefits of having Microsoft as a non-voting observer.
OpenAI gained global prominence after launching its ChatGPT chatbot in late 2022, which quickly became a significant player in AI development. Microsoft has invested heavily in OpenAI, with total investments reportedly reaching $13 billion, positioning itself as a leader in AI model development.
Expert Opinions and Future Considerations 📊
Alex Haffner, a competition partner at law firm Fladgate, commented that Microsoft’s decision appears influenced by the ongoing regulatory scrutiny. Regulators are closely examining the intricate relationships between big tech companies and AI providers, prompting Microsoft and others to reconsider how they structure their partnerships.
The decision underscores the growing regulatory pressures on tech giants as they navigate the rapidly evolving landscape of artificial intelligence and its implications for market competition.
Featured Earnings 💰️
Manchester [MANU] ... AM
WD-40 [WDFC] ... PM
PriceSmart [PSMT] ... PM
AZZ [AZZ] ... PM
E2Open Parent Holdings [ETWO] ... PM
Pure Cycle [PCYO] ... PM
Bassett Furniture Industries [BSET] ... PM
Voxx International [VOXX] ... PM
Economy 🏗
Wholesale inventories [May] ... 10:00a
Fed Chairman Powell's testimony to House ... 10:00a
Running Hot 🔥
Gainers
Seelos Therapeutics [SEEL] >> +36.9%
Kazia Therapeutics [KZIA] >> +25.0%
Soligenix [SNGX] >> +15.9%
Decliners
LegalZoom [LZ] >> (28.0%)
Zapp EV [ZAPP] >> (23.5%)
Sify [SIFY] >> (15.1%)
Vivopower Intl [VVPR] - Last Close: $2.55
Vivopower is pushing higher after securing an extension for a $34 million loan financing facility agreement.
The deal consolidates major shareholder loan into a single tranche and extends the tenure of non-dilutive financing at the company level.
Vivopower says the deal will also shore up its balance sheet, and it confirms major shareholder support of the company.
VVPR is a top mover with a 100% gain on over 10 million shares traded.
My Take: VVPR’s move seems to be a little exaggerated, so we could see a pullback before the week is through. Interestingly, shares jumped 15.9% on Tuesday before the news even broke.
Virpax Pharma [VRPX] - Last Close: $1.16
Virpax Pharma just announced positive results from a swine model pilot study of Probudur™, a long-acting wound-site injection for pain management.
The company said the drug was well tolerated among the pigs it was tested on, and other test results were “consistently positive.”
CEO Gerald Bruce said the company plans to file a New Drug Application for Probudur™ by the end of the year.
VRPX is up 50% on just shy of 4 million shares traded.
My Take: VRPX has been heating up in recent days, and this catalyst could keep the party going for a little longer.
Ampco-Pittsburgh [AP] - Last Close: $0.7649
Ampco-Pitt is soaring after its subsidiary, Union Electric Steel Corp, announced the landing roughly $11.7 million worth of new secured contracts.
Union Electric Steel will provide rolls for two new rolling mill projects in Mexico and Scandinavia, with deliveries expected in the first half of 2025.
The deals include a $6.7 million agreement with Ternium Mexico S.A. de C.V., and a $5 million deal with a major European OEM mill builder.
AP is up 52.9% on over 8 million shares traded.
My Take: This is a nice catalyst for AP, and it could help it snap out of its recent downtrend. Watch for a potential swing trade opportunity here.
Naas Technology ADR [NAAS] - Last Close: $3.25
Naas Technology is running hot in today’s premarket after posting a 68.3% gain in Tuesday’s session, despite lacking an obvious catalyst to explain the move.
Yesterday’s NAAS rally was accompanied by a huge volume spike, but the rush of trading didn’t slow down after the closing bell.
Naas hasn’t made an announcement since almost two weeks ago, when it announced it had regained compliance with Nasdaq’s minimum bid requirement.
NAAS is up 71.3% on almost 4 million shares traded.
My Take: NAAS has a modest short percentage of only 2.0% as of Jun. 14th, so this rally doesn’t appear to have the makings of a short squeeze.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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