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What to Watch on Wednesday 👀
It's going to be a busy week for earnings & economy, and the market is hoping to keep the momentum rolling from its late-week rally.
Chris Dinello
April 25, 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 posted a mixed performance on Wednesday, but closed the session near where they began. The S&P 500 and Nasdaq extended their winning streak by the narrowest of margins.
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Futures are down in early trading, with S&P 500 contracts showing a 0.6% ahead of the opening bell.
What to Watch Today:
Today’s schedule is jam-packed with notable corporate earnings and economy updates, so it could be a busy session. In the aftermarket, we’ll hear from Microsoft, Google, and Intel. In a few minutes, we’ll also get an update on Q1 GDP data, which could shed more light on the U.S. economy’s chances for a “soft landing” in the months ahead.
Morgan Stanley predicts that Musk's latest act will boost Tesla's shares by 80% in the next 12 months.
But if you want to profit from this development, you'll buy the firm that could see its sales explode by 829% as "Project Dojo" sweeps the nation.
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Premarket Highlights 🔎
⚡️ Elon Musk's Promises Big, Can He Deliver?
In the world of tech and stocks, Elon Musk remains a central figure. Recently, he refuted a Reuters report claiming Tesla was scrapping plans for a new, budget-friendly car—seen as crucial for the company's growth. Instead, he shifted focus and hyped up an upcoming "Tesla Robotaxi unveil" slated for August. This announcement alone was enough to push Tesla's stock up nearly 5% the following trading day.
Tactical Shift 🚗
The excitement continued into Tuesday evening when Tesla disclosed its quarterly results, revealing a strategic pivot. Instead of developing a completely new model, Tesla now plans to introduce a more affordable electric vehicle by adapting existing platforms. This move is a cost-effective strategy that could streamline production and leverage current technologies, satisfying investors amid growing concerns about Tesla's commitment to expanding its consumer base.
Autonomous Ambitions 🛑
However, the news wasn't all rosy. When it came to Tesla’s much-anticipated autonomous vehicle technology—critical for the future Robotaxis—the update was underwhelming. Tesla offered little new information on its progress or methods to bolster investor confidence in its self-driving technology, sticking instead to previous assertions about having the right strategy. Despite this, Musk's pragmatic approach this time around helped the company's shares soar by 12%, a stark contrast to its recent sharp losses.
Stock Surge 💸
Even though Tesla's first-quarter financials were somewhat alarming—with cash burn exceeding expectations and the lowest quarterly cash flow since early 2020—the market response was overwhelmingly positive. In fact, Wednesday's surge in Tesla’s market value was so significant it matched the entire market cap of General Motors.
In summary, as markets ebb and flow, the drama surrounding Tesla's strategic decisions and Musk's vision of futuristic transport continues to captivate and occasionally reassure investors, proving once more that in the world of tech and stocks, there's never a dull moment.
Featured Earnings 💰️
Merck & Company [MRK] ... AM
Caterpillar [CAT] ... AM
Comcast [CMCSA] ... AM
Union Pacific [UNP] ... AM
S&P Global [SPGI] ... AM
Honeywell International [HON] ... AM
Microsoft [MSFT] ... PM
Alphabet Inc (Google) Class C [GOOG] ... PM
T-Mobile Us [TMUS] ... PM
Intel [INTC] ... PM
Economy 🏗
GDP [Q1] ... 8:30a
Initial jobless claims [Apr] ... 8:30a
Advanced U.S. trade balance in goods [Mar] ... 8:30a
Advanced retail inventories [Mar] ... 8:30a
Advanced wholesale inventories [Mar] ... 8:30a
Pending home sales [Mar] ... 10:00a
Running Hot 🔥
Gainers
Barfresh Food [BRFH] >> +108.1%
Intelligent Living [ILAG] >> +53.7%
Ultralife [ULBI] >> +17.8%
Decliners
Scholar Rock [SRRK] >> (29.0%)
Chicken Soup [CSSE] >> (17.8%)
Biophytis [BPTS] >> (17.8%)
ReAlpha Corp [AIRE] - Last Close: $1.16
Yesterday, ReAlpha announced the launch of real estate’s first AI-powered, zero-commission smart buyer’s agent: Claire.
Share of AIRE rallied to a 9.20% gain on Wednesday following the announcement, but the breakout didn’t end at the closing bell.
AIRE is up another 44.8% in today’s premarket, on more than 2.5 million shares traded.
My Take: AIRE is getting a big boost from this news, but it’s likely to pullback before it’s all said and done. If you’re already in this one, don’t hesitate to take profits if it starts to go the wrong way.
Processa Pharma [PCSA] - Last Close: $1.62
This morning, analysts at HC Wainwright initiated coverage on Processa Pharma with a “buy” rating and an $8 price target.
The analyst’s target represents a 393% premium compared to PCSA’s Wednesday closing price.
PCSA is up 17.2% on over 5 million shares traded.
My Take: This rally seems like it’s a tad overdone, but PCSA was trading for more than $15 a share in December, so the $8 price target is achievable if the stock can pivot into a more favorable trend. .
Optinose [OPTN] - Last Close: $0.9253
Optinose is on the move after providing an early-morning corporate update on a crucial product launch and its preliminary Q1 financial performance.
The FDA recently approved a new indication for its XHANCE nasal spray, and Optinose provided several updates on its plan for the product.
The company said preliminary Q1 net revenue from its XHANCE product is $14.9 million, marking a YoY increase of 26%.
Optinose also said it expects to post positive income from operations in 2024.
OPTN is up 21.0% on over 350K shares traded.
My Take: Sounds like OPTN has a winner on its hands with XHANCE, but you wouldn’t know it by looking at its recent chart. Maybe this announcement will help it get back on track.
Nuwellis [NUWE] - Last Close: $0.2521
Nuwellis is running hot after it won a crucial patent titled "Venous Blood Flow Stimulator For Extracorporeal Therapy" on Monday.
The medical device company rallied in response to the announcement, but shares pulled back over the next couple of days.
However, the pullback appears to have been overdone because shares are rebounding today. NUWE is up 19.0% on over 2.5 million shares traded.
My Take: NUWE has been downtrending since at least late October, but the move may be bottoming out. The stock has experienced a significant spike in trading volume since its Monday announcement.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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