- Elite Trade Club
- Posts
- Futures dip in early trading 📉
Futures dip in early trading 📉
Index futures are pointing lower in early trading, as investors continue to navigate widespread uncertainty.
Chris Dinello
June 04, 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 closed out last week on a high note. The Dow notched a sharp rally, with the S&P 500 trailing close behind. The Nasdaq ended the session close to flat.
|
|
Futures are down in early trading. Both Dow and S&P 500 contracts are showing losses of 0.3% ahead of the opening bell.
What to Watch Today:
Uncertainty is holding back the stock market’s latest rally, and there appears to be no end in sight. Investors are eager for rates to come down, but the Fed has signaled a “wait and see” approach as a result of stubborn inflation. Today, keep an eye on whether the market continues to waffle near its latest highs.
The AI revolution is entering a new phase, and one tiny company's groundbreaking software solution is set to make early investors incredibly wealthy.
As U.S. businesses seek to eliminate $2 trillion in annual losses, this under-the-radar firm is perfectly positioned to dominate the market.
» Want an Ad-Free Experience + Top Growth Stock Picks? Upgrade Now!
Premarket Highlights 🔎
The Empire Strikes Back: E*TRADE Considers Keith Gill Ban, WSJ Reports
E*TRADE, a brokerage under Morgan Stanley [MS], is reportedly mulling over the possibility of banning Keith Gill, popularly known as "DeepF------Value" on Reddit, from its platform.
Gill's Activity 💼
GameStop shares surged after Gill disclosed a substantial position in the company, holding 5 million shares and 120,000 call options with a strike price of $20. The screenshot of his portfolio raised questions about his trading activities and their influence on meme stocks.
After Monday’s close, Gill posted another screenshot showing he hadn’t sold the $116 million position he showed off before the trading sessions.
The Investigation 🛑
Morgan Stanley's global financial-crimes unit and external counsel are reportedly assessing whether to cancel Gill's account amid scrutiny of his trading behavior.
The Journal claims an investigation revealed Gill purchased of call options before social media posts, potentially resulting in profits when some contracts expired.
Public & Private Scrutiny 🔍
The meme stock frenzy in 2021 made Keith Gill's a marked man. He was sued, hauled before congress, and smeared in the media. Now, the E*TRADE investigation marks the latest salvo in the ongoing war against Gill and his merry band of meme stock raiders.
My Take 🗣️
This is another attempt by the Wall Street’s aristocracy to crush anyone who dares to stand against them. Gill has been a marked man since his short-busting antics in 2021 set off a meme stock revolution, but most of the faux outrage expressed by Wall Street and its many media arms have been disingenuous, at best, and intentionally misleading, at worst. I don’t have an E*TRADE account but, if I did, I would be pulling my funds out on this. Corny move.
Featured Earnings 💰️
Ferguson PLC [FERG] ... AM
Bath & Body Works [BBWI] ... AM
Core & Main [CNM] ... AM
Donaldson Company [DCI] ... AM
Designer Brands [DBI] ... AM
CrowdStrike Holdings [CRWD] ... PM
Hewlett Packard Enterprise Company [HPE] ... PM
Guidewire Software [GWRE] ... PM
PVH [PVH] ... PM
Verint Systems [VRNT] ... PM
Economy 🏗
Factory orders [Apr] ... 10:00a
Job openings [Apr] ... 10:00a
Running Hot 🔥
Gainers
Sobr Safe [SOBR] >> +45.1%
Fresh2 DRC [FRES] >> +18.6%
Clean Energy Tech [CETY] >> +25.9%
Decliners
Lufax [LU] >> (51.5%)
Avalon Globocare [ALBT] >> (25.6%)
Axos Financial [AX] >> (14.6%)
MicroAlgo [MLGO] - Last Close: $1.56
MicroAlgo has partnered with WiMi Hologram Cloud [WIMI] to create a “micro-consciousness quantum research center.”
According to the press release, the center will “utilize quantum theory and cutting-edge AI technology to study the relationship between consciousness and quantum mechanics to explore deep scientific concepts.”
Financial details weren’t disclosed but MLGO is up 132% on the news, with over 16 million shares traded this morning.
My Take: This news has zero substance. The press release is a testament to how many buzzwords can be squeezed into one press release. I would limit my interest in MLGO to very short-term trades.
Annexon [ANNX] - Last Close: $4.58
This tiny pharma firm just announced a Phase 3 trial of ANX005 in Guillain-Barré syndrome patients achieved its primary endpoint.
Annexon said a single fusion of the drug produced “highly statistically significant” improvements.
The company expects to submit a biologics license application to the FDA sometime in the first half of 2025.
ANNX is up 50.6% on over 9 million shares traded.
My Take: ANNX appears to be on its way to a drug approval, but it will be a while before the catalyst comes to fruition.
Core Scientific [CORZ] - Last Close: $4.87
Late Monday, Core Scientific announced 12-year deals to provide 200 megawatts to host CoreWeave’s high-performance computers.
The company will modify sites to host CoreWeave graphics cards, with work expected to begin in early H2, bringing the site operational by H1 2025.
Under the deals, CoreWeave will fund the infrastructure modifications, with an estimated $300 million expected to be credited against hosting payments.
Core Scientific expects the project to generate cumulative revenue of more than $3.5 billion during the 12-year duration of the contracts.
CORZ is up 39.6% with upwards of 8 million shares traded so far in today’s premarket.
My Take: CORZ is up 45% over the past month, and this news could help it maintain its momentum.
SunLink Health [SSY] - Last Close: $0.6040
Late Monday, SunLink announce the sale of its Trace Extended Care & Rehab subsidiary and related real estate for about $7.1 million.
The company will retain a net proceed of $6.5 million for working capital and general corporate purpose, and it expects to recognize a pre-tax gain of about $5.7 million in its fiscal Q4.
SunLink also said the sale is intended to “further its strategy of positioning itself for an extraordinary transaction,” such as a merger or buyout.
SSY is up 25.8%, but volume is light at just under half-a-million shares traded.
My Take: SSY appears to be cruising for a merger or buyout, so there could be more upside here if you can get in at a decent price point.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
Text ELITE to 47121 or click here to get our alerts on your mobile device, and never miss another fast-moving stock!
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.
According to one early A.I. pioneer:
“You can either use this as an unfair advantage to grow your wealth, or you can let it ravage your retirement savings. There’s no middle option.”