Futures stay flat after CPI miss 🎢

Stocks rallied on Wednesday, despite a less-than-ideal inflation number for February, but the rally could stall in today's session.

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 rallied on Tuesday, despite a higher-than-expected inflation rate on February’s CPI report.

  • Dow [+0.6%]

  • S&P 500 [+1.1%]

  • Nasdaq [+1.5%]

  • Russell 2K [<0.1%]

S&P 500 contracts are sitting close to flat in early trading. They’re currently clinging to a minuscule gain of less than 0.1%.

What to Watch Today:
The market had a counterintuitive reaction to yesterday’s February CPI report, but that doesn’t mean we’re out of the woods yet. Investors are well aware that the hotter-than-expected inflation rate could derail any plans the Fed had for a Spring rate cut, so we could see some volatility for the remainder of the week.

An overlooked company is making notable headway in one of the world’s most crucial energy markets.

The company is backed by an excellent team and a strong portfolio of assets, plus, it looks like a straight steal at its current valuation.

Technical analysis indicates a massive breakout could be imminent, so now could be an excellent time to get in position.

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Premarket Highlights 🔎

📊 S&P 500 Sets New High Amid Inflation News

The latest inflation data came in hotter than many economists had anticipated, with consumer prices jumping 3.2% in February year-over-year.

Despite this uptick, the reaction from Wall Street was surprisingly positive, as the increase was less severe than what some investors had braced for. This nuanced interpretation of the inflation report provided a lift to the stock market on Tuesday.

🚀 Indexes Surge  
A diverse group of companies, spanning from technology firms like chip manufacturers and software developers to retail giants and pharmaceutical leaders, played pivotal roles in driving the major stock indexes upwards.

The Dow Jones Industrial Average saw a gain of 0.6%, or about 236 points, and the Nasdaq Composite led the charge with a 1.5% increase. The S&P 500 wasn't far behind, adding 1.1% to its value and recording its 17th record high of the year.

💡 Inflation Optimism 
Even in the face of a Labor Department report that underscored the persistent challenge of high inflation, the prevailing sentiment among investors leaned towards optimism.

The consensus is that the Federal Reserve might still proceed with interest rate cuts later in the year, a move that could ease borrowing costs for companies and further invigorate the stock market.

🔮 Rate Cut Expectations 
The anticipation of potential Federal Reserve actions has significantly influenced trading dynamics, with futures markets now pricing in a 60% probability of rate cuts starting as soon as June.

This view, set against the backdrop of stubbornly high inflation, underscores the complex interplay between economic indicators and market sentiment, guiding investor strategies in the current financial landscape.

Featured Earnings 💰️ 

  • Dollar Tree [DLTR] ... AM

  • Williams-Sonoma [WSM] ... AM

  • Arcos Dorados Holdings [ARCO] ... AM

  • Zim Integrated Shipping Services [ZIM] ... AM

  • Target Hospitality [TH] ... AM

  • Silence Therapeutics [SLNCF] ... AM

  • Lennar [LEN] ... PM

  • UiPath [PATH] ... PM

  • SentinelOne [S] ... PM

  • Navigator Holdings [NVGS] ... PM

Economy 🏗

  • None

Running Hot 🔥

  • Kintara Therapeutics [KTRA] >> +23.1%

  • Agile Thrpe [AGRX] >> +20.5%

  • LiCycle [LICY] >> +42.8%

  • Voxeljet [VJET] >> (35.0%)

  • Surgepays [SURG] >> (27.3%)

  • Luna [LUNA] >> (20.2%)

NuCana [NCNA] - Last Close: $0.3846

After Tuesday’s close, clinical-stage biopharma firm NuCana announced it had been awarded a “broad” U.S. patent covering therapeutics for several cancers.

The patent is titled, “"Phosphoramidate Derivatives For Use In The Treatment Of Cancer; Especially In The Treatment Where The Patient Shows Resistance"

NCNA is leading the premarket with a 106.1% gain on 15 million shares traded.

My Take: NCNA is getting a big boost from this patent news, and it saw a major volume spike in yesterday’s session. It could be worth watching.

Laird Superfood [LSF] - Last Close: $0.93

A stronger-than-expected Q4 earnings report released in Tuesday’s aftermarket is rallying shares of Laird Superfood.

The company reported $(0.00) EPS for the quarter, but that was a significant improvement over analysts’ estimate of a $(0.23) per share loss.

Lairds’ revenues came in at $9.2 million against Wall Street’s consensus of $8.736 million.

LSF is a top mover with a 58.8% gain on more than 3 million shares traded.

My Take: LSF is on pace to smash through some key resistance points with today’s rally, but the nearest level of price support could be a long ways down if shares pull back. 

Minim [MINM] - Last Close: $5.01

This tiny IT stock is gaining after announcing an all-stock merger deal with e2Companies after Tuesday’s closing bell.

Under the terms of the deal, stakeholders of e2Companies will control 97% of the newly combined company after closing, with Minim controlling the rest.

The combined company is expected to take the name e2Companies and trade under Nasdaq. The deal is expected to close in Q2 2024.

MINM is up 39.9% on more than 1 million shares traded.

My Take: MINM’s merger deal gives you an opportunity to buy into e2Companies ahead of the merger. However, I would recommend doing some research on the company before buying in.

ShiftPixy [PIXY] - Last Close: $3.13

Tiny tech stock ShiftPixy is rebounding after suffering an 18.5% sell-off on Tuesday, following its termination of its CEO and CFO the day before.

Pixy announced the termination of CFO Douglas Beck and CEO Amanda Murphy after Monday’s close, prompting a negative reaction at the next open.

However, the market appears to have shifted its view on this move, and shares are recovering in today’s premarket.

PIXY is up 29.3% on nearly 4 million shares traded.

My Take: PIXY investors hope clearing out the C-Suite will help the company get back on track, but only time will tell if those hopes are well-founded or wishful thinking.

That's it for today! Thanks for reading, and good luck out there!

Best Regards,

— Chris D.
Elite Trade Club

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