4 Active stocks to watch today 📈

The market is looking to return to form after back-to-back lackluster performances.

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 ended Wednesday’s session close to flat, but the Dow was the only index to manage a small gain. The S&P 500 ended the day flat, while the Nasdaq fell for the second day in a row.

  • Dow [+0.4%]

  • S&P 500 [0.0%]

  • Nasdaq [-0.1%]

  • Russell 2K [-0.4%]

Futures are edging lower in early trading. S&P 500 contracts are currently down by about 0.1%.

What to Watch Today:
Today’s session will be pretty thin for notable earnings & economic updates, so we could see stocks continue to meander, as they have done for the past few sessions. One item worth watching is the weekly jobless claims report. After the April jobs report came in below expectations, investors are likely to monitor this report closely to see if there are any more red flags popping up in the labor market.

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Premarket Highlights 🔎

🇬🇧 Bank of England Holds Rates Steady

The Bank of England (BOE) announced its decision to keep interest rates steady, in line with market expectations. While acknowledging the efficacy of current monetary policy in curbing inflation, the central bank signaled caution regarding a potential rate cut in June.

Cautionary Tone 🗳️
The Monetary Policy Committee (MPC) voted 7-2 in favor of holding rates, with two members advocating for a cut. Despite emphasizing elevated inflation indicators, the MPC highlighted geopolitical uncertainties as potential near-term risks.

Data Dependency 📊
The BOE underscored the importance of upcoming data releases, particularly two Consumer Price Index reports scheduled before the next meeting in June. Governor Andrew Bailey emphasized the need for further evidence of sustained low inflation before considering rate cuts.

Market Expectations 💱
Market sentiment favors rate cuts starting in the summer, with August being the likely timeframe. However, the probability of a rate cut in June remains uncertain, with economic projections suggesting a significant drop in headline inflation in April.

Economic Outlook 📈
The BOE anticipates modest GDP growth for the first and second quarters of the year, with inflation hovering close to the 2% target in the near term. While emphasizing a data-driven approach, the BOE maintains its stance on restrictive monetary policy.

Guidance 📉
Analysts interpret the BOE's statement as signaling a cautious approach to rate cuts, with future decisions contingent on incoming economic data. The emphasis on wage data suggests that forthcoming indicators will shape the timing of any potential rate adjustments.

Featured Earnings 💰️ 

  • Brookfield [BN] ... AM

  • Constellation Energy [CEG] ... AM

  • Roblox [RBLX] ... AM

  • Warner Bros. Discovery [WBD] ... AM

  • Endeavor Group Holdings [EDR] ... AM

  • Warner Music Group [WMG] ... AM

  • Royalty Pharma [RPRX] ... AM

  • Hyatt Hotels [H] ... AM

  • Mettler-Toledo International [MTD] ... PM

  • Akamai Technologies [AKAM] ... PM

Economy 🏗

  • Initial jobless claims [May] ... 8:30a

Running Hot 🔥

  • Inspire Veterinary [IVP >> +41.8%

  • Wavedancer [WAVD] >> +20.2%

  • Lanvin Group [LANV] >> +18.0%

  • EMCORE [EMKR] >> (41.3%)

  • Tivic Health [TIVC] >> (35.8%)

  • Forward Air [FWRD] >> (29.2%)

Sezzle [SEZL] - Last Close: $44.74

Stronger-then-expected Q1 earnings are rallying shares of Sezzle to the top of the charts in today’s premarket.

The company reported EPS of $1.34 per share, up from $0.31 per share a year earlier, and revenues grew 35.4% YoY to $46.98 million in Q1.

Consensus earnings & revenue estimates weren’t available for this stock, but shares are reacting favorably to the report.

SEZL is up 46.6%, but volume is thin at less than 50K shares traded.

My Take: SEZL is coming off a pullback, which may explain why this rally seems so exaggerated.

Zai Laboratory [ZLAB] - Last Close: $16.57

Strong earnings are also rallying shares of this China-based biotech stock.

Zai Labs reported a thinner-than-expected Q1 loss of $(0.55) per share against the Street’s $(0.94) estimate.

Revenues of $87.1 million also cleared the $75.24 million consensus estimate.

ZLAB is up 20.7% on roughly 100K shares traded.

My Take: ZLAB has been riding a long downtrend since the beginning of the year. However, it recently pivoted upward after bottoming out at around $14 per share. These results could help it extend its positive trend.

Pop Culture [CPOP] - Last Close: $1.70

The Chinese entertainment company released an interim financial report for the six months ending Dec. 31st, 2023.

Pop Culture’s revenues jumped 113% year-on-year and grew to $24 million for the period.

The company also managed to generate a gross profit of $1.78 million after posting a $2.34 million loss a year ago.

CPOP is today’s top mover with an 85.8% gain on more than 8 million shares traded.

My Take: I am always suspicious of these sudden explosive rallies in China stocks. I would steer clear of CPOP unless you have a contingency plan for when it inevitably reverses course.

Greenwave Tech [GWAV] - Last Close: $0.0581

Greenwave Tech is rallying after its CEO exchanged a $7.22 million debt for common shares of GWAV at a price of $0.1167 per share.

The move will improve the company’s balance sheet, and it demonstrates to the market that leadership has “skin in the game.”

The transaction price was also significantly higher than the stock’s current bid, implying that the stock could be undervalued at its current level.

GWAV is up 23.9%, and it’s this morning’s most active stock with over 37 million shares traded.

My Take: GWAV has had a really rough go of it over the past three months. I don’t think this insider transaction will be enough to move the needle in the long run.

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

Best Regards,

— Chris D.
Elite Trade Club

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