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- Stocks look to snap their losing streak 🌊
Stocks look to snap their losing streak 🌊
The market is hoping to heat up before entering the weekend.
Chris Dinello
May 24, 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 continued their downward move on Thursday, with a sell-off in the Dow leading the way lower. The Small-cap Russ2K also underperformed.
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Futures are ticking higher in early trading. S&P 500 contracts are showing a 0.2% gain ahead of the open.
What to Watch Today:
Today’s earnings & economics schedule is light, so the biggest story to monitor is the market’s performance going into the weekend. U.S. indexes have been trending lower for the past two days, and the trend could be more likely to extend into next week if stocks close today’s session in the red.
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Premarket Highlights 🔎
SEC Approves Ether ETFs 📈
The SEC's recent decision to approve a rule change opens the door for the creation of ETFs that hold ether, a leading cryptocurrency. This move mirrors the approval granted to bitcoin ETFs earlier, marking a significant development for the cryptocurrency industry.
Market Expectations 🔍
Anticipation for the approval of ether ETFs has been building, with many companies, including BlackRock, Bitwise, and Galaxy Digital, preparing to launch such funds. The decision coincides with expectations surrounding the VanEck Ethereum ETF, heightening market interest.
Response 📈
Following the announcement, the price of ether experienced a modest 2% increase, although earlier in the week, it surged by 20% in anticipation of the decision. However, some investors remain cautious as the SEC's approval of the rule change does not guarantee the immediate launch of all proposed ETFs.
Potential Impact 📊
While ether ETFs are expected to be smaller initially compared to their bitcoin counterparts, the approval signals a potential shift in the SEC's stance towards cryptocurrencies. This regulatory move could lead to increased institutional investment in ether and contribute to its broader adoption.
Regulatory Shift 🔄
The SEC's decision reflects a possible softening of its regulatory approach to crypto assets, following legal battles and increasing political scrutiny. It highlights a growing acceptance of cryptocurrencies like ether within traditional financial markets.
Outlook & Demand 🔮
Despite the approval, ether ETFs may face challenges such as limited demand compared to bitcoin ETFs. Factors like the absence of staking opportunities in ETF products and structural differences may impact investor interest. However, the approval represents a significant step forward for ether and the cryptocurrency market as a whole.
Featured Earnings 💰️
Booz Allen Hamilton Holding [BAH] ... AM
Sunlands Technology [STG] ... AM
Economy 🏗
Durable-goods orders [Apr] ... 8:30a
Consumer sentiment (final) [May] ... 10:00a
Running Hot 🔥
Gainers
Tian Ruixiang [TIRX] >> +39.4%
Innovative Eyewear [LUCY] >> +28.1%
Pliant [PLRX] >> +15.7%
Decliners
Verastem [VSTM] >> (61.0%)
Sensei Biotherapeutics [SNSE] >> (40.2%)
Barnes & Noble Education [BNED] >> (24.0%)
Merus NV [MRUS] - Last Close: $44.07
A promising bit of clinical data is rallying shares of Merus in today’s premarket.
Yesterday, Merus unveiled new data showing petosemtamab combined with pembrolizumab produced a 60% response rate against certain types of tumors.
The combination therapy also produced a favorable safety profile.
Merus will host a conference call on Tuesday, May 28th, to discuss the clinical results in more detail.
MRUS is up 20.4% on roughly 100K shares traded.
My Take: MRUS is on pace to set an all-time high in the wake of this news. It could find support at $50 per share, but it might be wise to wait for a pullback.
Akanda [AKAN] - Last Close: $2.39
Akanda is rebounding after a sell-off in Thursday’s session that followed its announcement of a 1-for-40 reverse stock split.
Shares plummeted 34.7% in yesterday’s session, but the move is reversing course in the premarket.
AKAN is this morning’s top performer, with a 107.1% gain on upwards of 10 million shares traded.
My Take: AKAN has been riding a downtrend since the start of 2024, but it could find support at around $4 per share if it can hold onto its gains through the close. It also has a 19.51% short rate as of Apr. 30th.
Cue Health [HLTH] - Last Close: $0.0943
Cue Health is rebounding after selling-off in Thursday’s session.
Earlier in the week, CFO Aasim Jared reported selling13,327 shares of his stock, and shares have been volatile ever since.
HLTH sold off for an 11.8% loss yesterday, but it’s breaking out ahead of this morning’s opening bell.
HLTH is a top mover with a 39.6% gain on more than 75 million shares traded.
My Take: HLTH has experienced a huge volume spike over the past week, so something about this stock has suddenly attracted the markets attention. I expect we’ll see more volatility in this ticker next week.
Netcapital [NCPL] - Last Close: $0.1520
Netcapital is on our list again as shares continue to soar, despite no obvious company-specific news to explain the sudden rally.
NCPL’s early gains eventually thinned out to 15.0% by the time Thursday’s session closed, but the stock is making another run for it today.
The stock is up 80.5% in the premarket on over 55 million shares traded.
My Take: I’m not sure what’s going on here. I don’t see an obviously elevated short rate, but the stock has a very small float of just $3.5 million. It could be a case of targeted buying, like we’ve seen with the many “meme stock” rallied over the past two weeks.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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