Buckle up for a busy day 🌊

CPI and Retail Sales report are on deck, plus big earnings report from several notable companies.

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 edged higher on Tuesday despite stronger-than-expected inflation on April’s PPI report.

  • Dow [+0.3%]

  • S&P 500 [+0.4%]

  • Nasdaq [+0.7%]

  • Russell 2K [+1.1%]

Futures are mixed ahead of today’s crucial CPI update, but both S&P 500 and Dow futures are sitting within 0.1% of flat.

What to Watch Today:
The April CPI report is undoubtedly the biggest item on Wednesday’s agenda. Median forecasts predict year-on-year CPI inflation slowed to 3.4% in April, down from 3.5% in March. We’ll also get the latest retail sales numbers today, which could shed light on the current state of the U.S. consumer.

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Global demand for batteries is increasing, driven largely by the imperative to reduce climate change through electrification of mobility and the broader energy transition. The global demand for lithium-ion batteries is poised for an unprecedented surge in the next decade. By 2030, the requirement is projected to skyrocket from about 700 GWh in 2022 to approximately 4.7 TWh. 

One NASDAQ-traded small-cap company is at the forefront of the lithium boom as a domestic industrial leader in green energy storage and the maker of game-changing Battle Born Batteries®. With non-toxic chemistry which allows for reduced environmental concerns over the disposal and handling of battery packs, this may be the smartest way to get exposure to the green boom!

Through its renowned Battle Born Batteries® brand, this company has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. Notable celebrity customers include Pawn Star’s Rick Harrison, former MLB player Barry Bonds, and comedian Tom Green, among others! There is a massive market opportunity for the company to the tune of $85 billion by 2025; a market that is fueled by IRA and supply chain constraints. This U.S.-based company is seeing profits with a whopping $225M in revenue since 2022 and 2024 could be another year of stellar growth!

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Premarket Highlights 🔎

Ucg | Universal Images Group | Getty Images

🚀 April CPI Preview

Anticipation surrounds the forthcoming release of April's consumer price index (CPI), offering insights into the trajectory of inflation. While April may reveal a slight improvement in inflationary pressures, the Federal Reserve remains cautious about potential economic implications.

Projected Figures and Trends 📊 
Projections suggest a 0.4% increase in prices for all items, mirroring March's figures. However, the annual inflation rate is expected to dip slightly to 3.4%, down from 3.5%. The core measure, excluding food and energy, is projected to show a 0.3% gain, signaling moderation compared to previous months.

Powell's Outlook and Caution 💬 
Fed Chair Jerome Powell remains watchful, expressing hope for inflation to ease but acknowledging uncertainties. Powell's recent remarks in Amsterdam underline a cautious stance, indicating a reluctance to adjust interest rates amidst lingering inflation concerns.

Impact of Producer Price Index 📈 
April's producer price index (PPI) surged by 0.5%, surpassing expectations and highlighting ongoing inflationary pressures. This uptick amplifies the significance of Wednesday's CPI release, shaping expectations for economic policies and market dynamics.

Market Sentiment and Expectations 📉 
Financial markets have adjusted expectations, scaling back projections of rate cuts amidst persistent inflationary trends. Despite this, stocks exhibit resilience, focusing on corporate performance and broader economic growth prospects amidst a tightening monetary policy environment.

Housing Market Focus 🏠
Attention shifts to housing-related costs within the CPI, comprising a significant portion of the index. Elevated shelter expenses, particularly owners' equivalent rent, pose challenges to inflation management strategies. Continued scrutiny of housing dynamics may influence future policy considerations by the Federal Reserve.

Featured Earnings 💰️ 

  • Dynatrace [DT] ... AM

  • Monday.com [MNDY] ... AM

  • MakeMyTrip Limited [MMYT] ... AM

  • Sportradar Group [SRAD] ... AM

  • Arcos Dorados Holdings [ARCO] ... AM

  • Cisco Systems [CSCO] ... PM

  • Grab Holdings Limited [GRAB] ... PM

  • Copa Holdings [CPA] ... PM

  • FinVolution Group [FINV] ... PM

  • Navigator Holdings [NVGS] ... PM

Economy 🏗

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

  • U.S. retail sales [Apr] ... 8:30a

  • Empire State manufacturing survey [May] ... 8:30a

  • Home builder confidence index [May] ... 10:00

  • Business inventories [Mar] ... 10:00a

Running Hot 🔥

  • SINTX Tech [SINT] >> +184.9%

  • Greenwave Tech [GWAV] >> +36.6%

  • Blue Star Foods [BSFC] >> +37.3%

  • Virpax Pharma [VRPX] >> (59.2%)

  • Bolt [BOLT] >> (29.5%)

  • DLocal [DLO] >> (30.4%)

Faraday Future [FFIE] - Last Close: $0.2852

The rising tide of “Meme Stocks” has lifted several heavily-shorted stocks this week, and Faraday Future has just entered the chat.

The EV Maker stock jumped by 367.5% yesterday, despite no news to explain the move. It’s also at risk of being delisted from the Nasdaq.

However, the stock’s 97.98% short rate as of April 30th has proven too enticing for the raiders, and a massive short squeeze is in progress.

FFIE is up another 107.4% in early trading, with over 144 million shares changing hands.

My Take: The shorts are getting smoked this week, and FFIE could be the best example of how over-leveraged stocks can blow up with enough of a buying push.

Edible Garden Ag [EDBL] - Last Close: $4.27

This tiny ag stock is surging int he premarket despite posting Q1 earnings that fell well short of consensus estimates.

Edible Garden reported a loss of $(13.65) per share and missed the $(7.60) consensus by a wide margin.

Revenues of $3.132 million also fell in below the $3.204 million consensus, but sales grew 27.58% from the same time last year.

EDBL is a top performer with a 52.9% gain on over 1.5 million shares traded.

My Take: EDBL’s earnings report disappointed expectations, but the company still showed notable signs of improvement from a year ago. That could explain the seemingly counterintuitive gains we’re seeing today. .

Dolphin Entertainment [DLPN] - Last Close: $1.13

Dolphin Entertainment is getting a boost after reporting Q1 financial results that demonstrated significant improvement from the year-earlier quarter.

The company reported a quarterly loss of $(0.02) per share, up from $(0.23) a year ago. Consensus estimates weren’t available for this ticker.

Revenues also showed signs of progress, growing 54.0% to $15.24 million for the first quarter.

DLPN is up 27.1% on over 1 million shares traded today.

My Take: DLPN is a volatile stock, and it’s still got a long way to go, but the progress is encouraging.

SuperCom [SPCB] - Last Close: $0.2160

SuperCom’s premarket earnings report is rallying shares of the tiny IoT stock in today’s premarket.

The company swung to a “record profit” of $0.07 per share after posting a loss of $(0.05) per share a year ago.

Sales increased to $6.85 million from $6.38 million a year earlier. Consensus estimates weren’t available fo this stock.

SuperCom also noted it posted EBITDA growth of 400% YoY in Q1.

SPCB is up 25.4% on nearly 10 million shares traded.

My Take: SPCB is showing notable signs of progress, and its elevated short percentage of 6.99% could throw more fuel on the fire.

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

Best Regards,

— Chris D.
Elite Trade Club

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