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- Buckle up for today's PCE report 🚨
Buckle up for today's PCE report 🚨
New data on the Fed's preferred inflation gauge will drop any second.
Chris Dinello
June 28, 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 edged higher on Thursday with the Nasdaq leading the way. Most indexes closed within 0.1% of flat.
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Futures are edging higher in early trading. S&P 500 contracts are up by 0.3%.
What to Watch Today:
New data on Personal Consumption Expenditures (PCE) will drop today at 8:30 a.m. ET. PCE is the Fed’s preferred gauge for measuring inflation, so this report could have more market-moving potential than usual. Stocks have been in a holding pattern for the past week or so, but this data could set the tone for the next couple of weeks.
The race is on to wean off of Chinese lithium and all eyes are on which domestic companies will win the race….
One U.S.-based company is setting out to dominate the lithium-ion battery market with several noteworthy innovations.
It could be the next huge winner to come out of the U.S. lithium industry.
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Premarket Highlights 🔎
Nike Shares Plunge After Forecasting 10% Drop in Quarterly Sales 📉
Shares of Nike plunged on Thursday after the company lowered its full-year guidance and forecasted a 10% decline in first-quarter sales due to weak performance in China and uneven consumer trends globally. This projected slump is significantly worse than the 3.2% drop analysts had expected, according to LSEG.
Revised Expectations 📊
Nike now anticipates fiscal 2025 sales to decline by mid-single digits, contrary to analyst estimates of a 0.9% increase. The company also expects first-half sales to fall in the high single digits, compared to previous guidance of low single-digit declines. As a result, Nike's shares fell roughly 11% in extended trading.
Headwinds 🌍
The company attributed the revised guidance to slower online sales, planned reductions in classic footwear lines, macroeconomic uncertainties in Greater China, and inconsistent consumer trends across its markets. Nike also expects slower sales to wholesalers as it focuses on new innovations and pulls back on classic franchises.
Earnings Highlights 📈
Despite these challenges, Nike exceeded earnings expectations for the fiscal fourth quarter due to successful cost-cutting measures, although it missed revenue targets. The company reported net income of $1.5 billion, or 99 cents per share, for the quarter ending May 31, compared to $1.03 billion, or 66 cents per share, a year earlier. Sales dropped to $12.61 billion, down about 2% from $12.83 billion a year earlier.
Future Outlook 🌐
Sales in China exceeded expectations, reaching $1.86 billion, despite declining traffic. North American sales, Nike's largest market, fell short at $5.28 billion. In Europe, the Middle East, and Africa, revenue was $3.29 billion, while Asia Pacific and Latin America saw sales of $1.71 billion. Nike's Converse brand underperformed, with revenue plunging 18% to $480 million. Despite near-term challenges, Nike remains confident in its long-term strategy and competitive position, particularly in China.
Featured Earnings 💰️
Crown Crafts [CRWS] ... AM
Economy 🏗
PCE index [May] ... 8:30 am\
Chicago Business Barometer (PMI) [Jun] ... 9:45a
Consumer sentiment (final) [Jun] ... 10:00a
Running Hot 🔥
Gainers
African Ag [AAGR] >> +34.5%
Innovative Eyewear [LUCY] >> +32.9%
Infinera [INFN] >> +19.2%
Decliners
Nexalin Tech [NXL] >> (34.8%)
Elicio Therapeutics [ELTX] >> (37.1%)
Accolade [ACCD] >> (32.7%)
Cosmos Health [COSM] - Last Close: $0.6790
This tiny stock is surging after announcing a new exclusive distribution deal on Thursday.
Cosmos has signed an exclusive deal with Pharmalink for its Sky Premium Life products in the United Arab Emirates.
Details are still scant, but the stock is reacting very favorably to the news.
COSM is a top mover with a 63.1% gain on roughly 13 million shares traded.
My Take: COSM is getting a big boost from this news, but I haven’t been able to track down many specific details.
Ocean Power [OPTT] - Last Close: $0.16
On Thursday, Ocean Power announced the signing of an Original Equipment Manufacturing agreement with Teledyne Technologies [TDY] subsidiary.
Teledyne Marine will leverage Ocean Power’s sensor and ocean technology products to develop new products & capabilities.
Financial details of the partnership weren’t disclosed.
OPTT is up 26.5% on 28 million shares traded.
My Take: This could be a big deal for OPTT or it could be a big nothing-burger. Furthermore, this stock has had a rough year so be prepared for volatility.
Carisma Therapeutics [CARM] - Last Close: $1.28
Late Thursday, Carisma announced a new collaboration with Moderna [MRNA] on a solid tumor investigative study.
The tiny biotech said the first development candidate under the new partnership will be an in vivo CAR-M targeting Glypican-3 designed to treat solid tumors, including hepatocellular carcinoma.
The nomination triggered a $2 billion milestone payment to Carisma.
CARM is up 35.1% on over 5 million shares traded.
My Take: CARM looks like a winner on this one. A $2 billion payment and a partnership with MRNA, not too shabby for a stock with a $53 million market cap.
Global Partner SPAC [GPAC] - Last Close: $10.65
This SPAC is soaring after shareholders voted to approve its business combination with Stardust Power at a special meeting on Thursday.
The company announced the news early this morning via Form 8-K and Form 425 filings.
The successful vote clears the way for a reverse merger between the SPAC and its privately-held counterpart.
GPAC is up 16.0%, but volume is very thin.
My Take: SPACs tend to perform poorly after closing a deal, so I would steer clear of this one until the likely-to-come pullback runs its course.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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