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- Huge Day for Stocks: Fed, Jobs Data, and More 🚀
Huge Day for Stocks: Fed, Jobs Data, and More 🚀
It's a busy day for the market with several big earrings & economic events on deck.
Chris Dinello
May 01, 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 turned south on Tuesday after running in the green for several days. The Nasdaq underperformed with a two-point sell-off, with the Dow and S&P 500 close behind.
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S&P 500 futures are up 0.3% in early premarket trading, raising the likelihood of a lower open for the market.
What to Watch Today:
The Fed will conclude its monthly meeting today, followed by a Jerome Powell press conference. Traders suspect the Fed will take a more hawkish stance in light of stubbornly strong inflation & a strong job market.
We’ll also get a preview of Friday’s April Jobs Report in the form of the ADP Employment report. The jobs report could have a massive impact on tomorrow’s trading session, so it’s worth keeping on eye on the ADP report.
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Premarket Highlights 🔎
👨⚖️ Johnson & Johnson Settles Talc Lawsuits for $6.5 Billion
Johnson & Johnson [JNJ] has reached a groundbreaking agreement to pay $6.5 billion to settle almost all of the U.S. lawsuits alleging that its talc-based products caused ovarian cancer. This substantial settlement aims to conclude thousands of claims that have cast a long shadow over the company's operations.
Legal Resolution 📑
The settlement involves a strategic third bankruptcy filing by J&J’s subsidiary, LTL Management. This legal maneuver is designed to consolidate and resolve the lawsuits efficiently, allowing the company to manage and mitigate the financial and reputational impacts of the ongoing litigation.
Future Claims 🗳️
J&J has initiated a three-month voting period for the claimants, which is a crucial step towards achieving a consensus on the settlement. This agreement aims to address all current and future ovarian cancer claims, which constitute about 99% of the talc-related lawsuits filed against the company and its subsidiaries.
Excluding Mesothelioma 🔍
The current settlement plan notably excludes lawsuits related to mesothelioma, another type of cancer alleged to be caused by J&J’s talc products. These remaining cases will continue to be addressed separately, with J&J noting that it has already resolved 95% of the mesothelioma lawsuits it has faced to date.
Implications for JNJ 💸
This settlement marks a significant turning point for Johnson & Johnson, aiming to put a majority of the talc-related legal challenges behind it. By resolving these claims, J&J seeks to stabilize its legal landscape and focus on its broader business objectives without the overhang of widespread litigation.
Looking Ahead 🚀
With this major legal hurdle getting cleared, Johnson & Johnson is poised to rebuild trust with consumers and investors alike. The resolution of these lawsuits not only mitigates a substantial legal risk but also allows the company to concentrate on innovation and market expansion, reinforcing its commitment to safety and customer care in its product offerings.
Featured Earnings 💰️
Linde [LIN] ... AM
ConocoPhillips [COP] ... AM
The Cigna Group [CI] ... AM
Regeneron Pharmaceuticals [REGN] ... AM
Southern Company [SO] ... AM
Intercontinental Exchange [ICE] ... AM
Apple [AAPL] ... PM
Amgen [AMGN] ... PM
Booking Holdings Inc. Common Stock [BKNG] ... PM
EOG Resources [EOG] ... PM
Economy 🏗
ADP employment [Apr] ... 8:15a
Construction spending [Mar] ... 10:00a
ISM manufacturing [Apr] ... 10:00a
Job openings [Mar] ... 10:00a
FOMC interest-rate decision ... 2:00p
Fed Chair Powell press conference ... 2:30p
Auto sales [Apr] ... 5:30p
Running Hot 🔥
Gainers
Akanda [AKAN] >> +46.2%
Predictive Oncology [POAI] >> +25.8%
Root [ROOT] >> +25.6%
Decliners
Cemtrex [CETX] >> (41.2%)
CVRx [CVRX] >> (31.6%)
NRX Pharma [NRXP] >> (16.6%)
Bio-Techne [TECH] - Last Close: $63.21
This morning, Bio-Techne dropped its fiscal Q3 financial report, and the results surpassed the Street’s expectations.
The mid-cap biotech stock reported EPS of $0.48, beating the $0.45 EPS consensus by a narrow margin.
Revenues grew by 3.16% to $303.43 million for Q3, outpacing the $292.19 million consensus. Bio-Teche also announced a new $0.08 quarterly dividend.
TECH is leading the S&P 500 with an 18.6% gain, but volume is kind of thin in early trading.
My Take: TECH’s strong quarterly report could help it pivot away from its recent downtrend in the coming days.
Plutonian Acquisition [PLTN] - Last Close: $8.85
After yesterday’s closing bell, Plutonian SPAC filed a Form 425 disclosure that revealed shareholders voted to approve its merger with Big Tree Cloud.
Shareholders voted to approve the measure on April 30th, clearing the way for the SPAC to complete its business combination.
PLTN is up 27.6% on over a half-million shares traded.
My Take: PLTN is coming off two days of big losses, but it’s hard to say whether this rally will last or if it’s a flash in the pan.
Im Cannabis [IMCC] - Last Close: $0.86
Cannabis stocks are getting a boost on reports the Biden Administration is considering an effort to loosen federal restrictions on the drug.
The U.S. Drug Enforcement Agency is reportedly considering reclassifying the drug as “less dangerous,” which could significantly loosen industry regulations.
Today, IMCC is the top premarket cannabis stock with a gain of 44.2% on more than 9 million shares traded.
My Take: I expect a broad cannabis boost from this news, especially if it goes through. The industry still has a lot big problems to solve, but this is a step in the right direction.
Getaround [GETR] - Last Close: $0.2027
P2P car share firm Getaround just announced it has secured $50 million in additional funding through an existing debt deal with Murdrick Capital.
Getaround drew down the first $20 million of the debt facility capital on April 29th, but the deal has been expanded to $50 million.
Mudrick CIO Jason Mudrick said he’s “increasingly confident in the company’s ability to execute” on its growth & profitability plans.
GETR is this morning’s top mover with a 63.9% gain on more than 9.5 million shares traded in premarket.
My Take: GETR has big problems to solve, but this deal gives them more time to solve them.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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