Top stocks from today's choppy session 🌊

U.S. benchmarks maintained their win streak with modest gains.

Author

Adam Garcia
May 07, 2024

Good Afternoon! 

Hey, everyone. It's Adam from Elite Trade Club. 

Here’s what moved the market today.

Markets 📈

The win streak continued on Tuesday, but U.S. indexes only managed to post modest gains, in most cases. Small-caps outperformed, while the Nasdaq cooled off after its recent hot streak.

  • DJIA [<0.1%]

  • S&P 500 [+0.1%]

  • Nasdaq [-0.1%]

  • Russell 2K [+0.2%]

From central banks to even Costco customers, it seems everyone is buying gold these days.

The yellow metal has been on an absolute tear this year, and it just set a new record high and the rally is showing no sign of slowing.

However, one overlooked gold opportunity could give you a much better shot at big returns than buying direct gold holdings.

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Market-Moving News 🔎 

☕️ TikTok Sues U.S. Government Over Forced Sale

TikTok, the popular video-sharing app, is taking legal action against the United States government to contest a recent bill aimed at compelling its Chinese owner to sell the platform or face prohibition.

Constitutional Clash 🥊 
In a lawsuit filed with the U.S. Court of Appeals for the D.C. Circuit, TikTok asserts that the bill, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, infringes on the First Amendment's protection of free speech. The company denounces the law as an "unprecedented violation" of constitutional rights.

Arguments 🗣️
TikTok argues that the invocation of national security concerns does not justify curtailing free speech. The burden, it contends, rests on the federal government to substantiate such restrictions, which it has failed to do. The lawsuit underscores the fundamental clash between security imperatives and individual liberties in the digital age.

Government Response ⏳ 
The Department of Justice and the White House have yet to provide official comments on the lawsuit. However, congressmen are always eager for publicity. Representative John Moolenaar, one of the bill’s sponsors, maintains that TikTok poses a significant national security risk, citing “classified material.” Well, that’s convenient!

Legal Implications 📆 
With legal proceedings now underway, the timeline for any potential ban or sale of TikTok is likely to be further delayed. ByteDance, the app's Chinese parent company, faces mounting pressure amid a protracted regulatory battle that could stretch on for years.

Government Scrutiny 🧐 
The lawsuit marks the latest chapter in the U.S. government's efforts to address to contain TikTok's growing influence. Whether or not the case is warranted remains to be seen, but, unlike a previous attempt under the Trump administration, both side of the aisle are clamoring for blood this time around.

Top Winners and Losers 🔥

Golden Sun Health [GSUN] $5.02 (+73.1%)
regained compliance with Nasdaq’s minimum bid price requirement as of May 2nd, according to a letter from the exchange.

NuZee [NUZE] $2.07 (+55.6%)
two shareholders acquired large positions in the company, equaling 11.3% and 17.6% ownership stakes, according to two SC-13/G filings.

American Strategic [NYC] $8.01 (+38.1%)
shareholder Bellevue Capital announced a tender offer for share of NYC that pays up to $9.25 per share.

HoldCo NUVO [NUVO] $2.85 (+45.7%)
resumed its downward trajectory after a 157.3% rebound on Monday.

Strong Global [SGE] $1.88 (29.0%)
retreated after rallying 132.4% on Monday, following its announcement of a deal with FG Acquisition to spin off a subsidiary.

Neuronetics [STIM] $2.60 (30.6%)
fell after publishing its Q1 financial results, despite beating consensus estimates for both earnings & revenues.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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