Futures pause ahead of PPI report 🛑

U.S. indexes are holding steady ahead of a key run of crucial inflation data set to roll out over the coming days.

Author

Chris Dinello
May 14, 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 opened the trading week with a mixed performance yesterday. The Dow snapped a lengthy winning streak, while the Nasdaq managed a small gain.

  • Dow [-0.2%]

  • S&P 500 [<0.1%]

  • Nasdaq [+0.2%]

  • Russell 2K [+0.1%]

Futures are sitting close to flat in early trading. S&P 500 contracts are up by less than 0.1% at the moment.

What to Watch Today:
Today’s Producer Price Index report will give the market some insights into the state of inflation ahead of tomorrow’s headline CPI report. Fed Chair Jerome Powell is also set to speak at 10 a.m., so we could see some volatility around that time. Keep an eye on both these events to get a better feel of how the market could react to tomorrow’s CPI data.

At least 41 major US banks have just made a drastic change to the way money in America works.

It could have some major implications for you, your money and your retirement.

But it's crucial you understand what's happening, before these changes get applied to your bank account.

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Premarket Highlights 🔎

Ucg | Universal Images Group | Getty Images

✂️ Walmart Rolls Out Sweeping Cuts

Walmart [WMT] is set to implement significant changes, including layoffs of hundreds of corporate staff and the relocation of remote workers, as reported by the Wall Street Journal. The move reflects Walmart's ongoing efforts to streamline operations and adapt to changing work dynamics.

Relocation Plans 📦
Remote workers, particularly those based in smaller offices in Dallas, Atlanta, and Toronto, are being asked to relocate to central hubs like Walmart's corporate headquarters in Bentonville, along with Hoboken or Southern California. While remote work options will still be available part-time, the majority of working hours are expected to be spent in the office.

Workforce & Operations 💼
With approximately 2.1 million associates as of January 31, 2024, Walmart's restructuring efforts will have a significant impact on its workforce. The company has been gradually reducing its workforce and aims to increase automation in its stores, with about 65% expected to be serviced by automation by the end of fiscal year 2026.

Continued Transformation 🔄
This move follows Walmart's previous initiatives, such as the closure of three U.S. technology hubs in February 2023, which required hundreds of employees to relocate. Walmart's focus on consolidating operations and encouraging in-office work reflects its commitment to agility and efficiency in a rapidly evolving retail landscape.

Featured Earnings 💰️ 

  • Home Depot [HD] ... AM

  • Alibaba Group Holdings [BABA] ... AM

  • Sea Limited [SE] ... AM

  • ON Holding [ONON] ... AM

  • International Game Technology [IGT] ... AM

  • Seadrill Limited [SDRL] ... AM

  • Nu Holdings [NU] ... PM

  • Nextracker [NXT] ... PM

  • DLocal Limited [DLO] ... PM

  • Prestige Consumer Healthcare [PBH] ... PM

Economy 🏗

  • Producer price index [Apr] ... 8:30a

  • Fed Chair Jerome Powell speaks ... 10:00a

Running Hot 🔥

Gainers

  • Chicken Soup [CSSEL] >> +73.3%

  • Microcloud Hologram [HOLO] >> +38.5%

  • BlackBerry [BB] >> +21.6%

Decliners

  • Scorpius [SCPX >> (56.0%)

  • Augmedix [AUGX] >> (41.0%)

  • Inotiv [NOTV] >> (34.0%)

GameStop [GME] - Last Close: $30.45

The meme stock resurgence is continuing this morning, and GameStop is once again leading the charge higher.

Shares soared 74.4% on Monday, but the closing bell didn’t slow the rally down. GME is soaring again in today’s pre-bell session.

There has been no company-specific news to explain the move, so it’s safe to assume this is a continuation of Monday’s meme stock rally.

GME is up 87.4% on nearly 30 million shares traded.

My Take: GME is in bad shape as a company, much worse than it was last time the meme rally kicked off, so I have little doubt that this rally will eventually collapse. If you’re in this one, don’t be afraid to take your profits when the timing is right, or you could get caught holding the bag.

AMC Entertainment [AMC] - Last Close: $5.19

AMC Entertainment is also getting a big boost from Meme Stock Mania.

The embattled theater stock jumped 78.3% on Monday in direct connection with the Roaring Kitty news, with no company specific news to speak of.

Now, it’s following GME higher in today’s premarket. AMC is up 108.4% on over 90 million shares traded.

My Take: Holy hell, that’s a lot of volume. I have the same take on AMC as I did GameStop. Don’t get caught holding the bag. Personally, I stay away from these. If I want to gamble, I’ll play poker.

Syra Health [SYRA] - Last Close: $1.33

Tiny healthcare tech stock Syra Health just landed a subcontract with the Defense Health Agency that could deliver a big revenue boost.

The company has been selected as a subcontractor for LUKE, which is the prime contractor on a 10-year $43 billion contract to provide medical staffing services at DHA facilities across the country.

Syra will assist LUKE in providing required services, such as providing contract healthcare workers, but financial details of the arrangement weren’t disclosed.

SYRA is up 38.3% on over 2 million shares traded.

My Take: Even a small piece of that $43 billion contract could make a huge difference for SYRA, which has a measly market-cap of just $8.54 million, so this one could have potential.

SunPower [SPWR] - Last Close: $2.75

This micro-cap solar stock is heating up in an apparent short squeeze ahead of its earnings report.

SunPower is scheduled to report its earnings results on May 23rd, but the stock also shows a short percentage of 94.99% as of April 30th.

SPWR jumped 19.5% on Monday despite no company-specific news, and it’s surging again in today’s premarket.

SPWR is up 62.1% on over 10 million shares traded.

My Take: SPWR’s enormous short percentage is likely the cause for this move. The Meme Stock Mania has reignited interest in targeting overly-shorted stocks like this, and I think the meme stock effect has spread beyond the usual suspects.

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

Best Regards,

— Chris D.
Elite Trade Club

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