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- Futures rise ahead of ADP job data 📈
Futures rise ahead of ADP job data 📈
Here are the top movers from today's premarket.
Chris Dinello
June 05, 2024
Sponsored By:
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Today’s premarket report is sponsored by: Percent. More on them later.
Let’s get ready to trade!
Markets 📈
U.S. large-caps notched modest gains on Tuesday, while the small-cap Russell 2K sold off for more than a point.
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S&P 500 futures are up 0.3% in early trading.
What to Watch Today:
Today’s ADP employment report will provide an early preview of what to expect for Friday’s big May employment report. Economists polled by Dow Jones are anticipating the data will show private employers added 175,000 jobs in May. The labor market has been a big focus for investors in recent weeks, so this upcoming employment data could have a significant impact on the market.
Private credit deals averaged a 12% return in 20231 and the asset class is projected to hit $2.3T by 2027.
The problem: High minimums and large deal sizes have historically put private credit out of reach except to larger institutional investors.
On Percent, everyday accredited investors can invest in private credit with as little as $500 and gain access to:
Double digit yield potential: Percent’s Q1 LTM net APY was over 14% after fees.
Shorter term offerings: The average investment term is 9 months.
Monthly cash flow: Most deals offer cash flow through monthly interest payments.
Diversification: Assets from domestic to international deals.
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Premarket Highlights 🔎
Dallas, TX could soon become the home of a new stock exchange intended to compete with the Nasdaq and NYSE.
Texas Stock Exchange Takes Aim at NYSE 🏹
Citadel Securities and BlackRock's endorsement of a new national stock exchange project in Texas signals a significant development in the financial landscape.
With $120 million raised and backing from over two dozen investors, the Texas Stock Exchange (TXSE) aims to offer a CEO-friendly alternative to traditional exchanges like the NYSE and Nasdaq, amidst increasing regulatory pressures and compliance costs.
Texas-Sized Growth 🤠
The decision to establish the TXSE in Texas underscores the state's burgeoning economy and its attractiveness as a business destination. TXSE CEO James Lee highlighted Texas's strong economic growth and population expansion, positioning the state as an ideal environment for businesses to thrive.
Challenges and Opportunities 🔄
The TXSE faces regulatory challenges, including the contentious Nasdaq diversity rule, which mandates disclosure of board diversity information.
However, the exchange aims to provide a fully electronic platform and seeks registration with the SEC. With plans to commence trading in 2025 and host listings by 2026, the TXSE presents an exciting opportunity for companies seeking an alternative exchange option.
Regional Focus and Support 🤝
TXSE's strategic focus on companies in the southeastern U.S. aligns with its goal of catering to businesses in high-growth regions. The exchange has garnered support from Texas Governor Greg Abbott, underscoring the state's commitment to fostering economic development and innovation.
A Vision for the Future 🚀
As the TXSE prepares to enter the market, it symbolizes a new frontier in stock exchange operations. With a mission to provide a conducive environment for businesses and investors alike, the TXSE aspires to become a key player in the national securities landscape, offering innovative solutions and opportunities for growth.
Featured Earnings 💰️
Dollar Tree [DLTR] ... AM
Brown Forman [BF.A] ... AM
Campbell Soup Company [CPB] ... AM
Thor Industries [THO] ... AM
Ollie's Bargain Outlet Holdings [OLLI] ... AM
Lululemon Athletica [LULU] ... PM
Five Below [FIVE] ... PM
Smartsheet [SMAR] ... PM
Greif [GEF] ... PM
Sprinklr [CXM] ... PM
Economy 🏗
ADP employment [May] ... 8:15a
ISM services [May] ... 10:00a
U.S. productivity (final revision) [Q1] ... 8:30a
U.S. trade deficit [Apr] ... 8:30a
S&P flash U.S. services PMI [May] ... 9:45a
Running Hot 🔥
Gainers
mF Intl. [MFI] >> +68.4%
Siyata Mobile [SYTA] >> +51.8%
WalkMe [WKME] >> +41.9%
Decliners
MicroAlgo [MLGO] >> (31.9%)
Sobr Safe [SOBR] >> (28.0%)
Cue Health [HLTH] >> (22.1%)
Hewlett Packard Enterprise [HPE] - Last Close: $17.60
A strong Q2 earnings report is lifting shares of Hewlett Packard in today’s premarket.
HPE reported EPS pf $0.42 on revenue of $7.2 billion, topping the consensus of $0.39 EPS on revenues of $6.83 billion.
The IT services provider lifted its full-year 2024 outlook on the heels of the strong quarter.
HPE is leading the S&P 500 with a 15.6% gain, and premarket trading volume is currently sitting at 1.2 million.
My Take: HPE has been volatile lately, but it could find new support at $18.50 per share if It holds onto its gain. It’s currently on pace to set a new 52-week high in today’s session.
Actelis Networks [ASNS] - Last Close: $0.47
A newly-announced deal with the U.S. military is skyrocketing shares of Actelis Networks ahead of the opening bell.
Actelis Landed a deal to deploy its “cyber-hardened” networking technology to three U.S. military bases.
CEO Tuva Barlev said the company deployed “significant resources” to achieve the necessary certifications and the company is “pleased” to see the efforts paying off in the form of government dels.
Financial terms weren’t disclosed in the initial press release.
ASNS is up by a whopping 759% on over 25 million shares traded.
My Take: Uncle Sam has deep pockets, so, if ASNS can eventually expand this deal, it could see enormous growth. That being said, this rally looks a little overdone, so I advise caution.
Moving Images Technologies [MITQ] - Last Close: $0.70
This movie theater equipment company said it was awarded a new Alamo Drafthouse project for a new Georgetown location in Indianapolis, IN.
“The Georgetown location in Indianapolis is another example of our strong partnership with Alamo,” said executive VP Joe Delgado.
The new location is expected to open this Summer.
MITQ is up 89.7% on more than 16 million shares traded.
My Take: MITQ is on pace to set a new 52-week high in response to this news. It may find some support around the $1 mark.
ENDRA Life Sciences [NDRA] - Last Close: $0.085
This micro-cap biotech is rebounding after a brutal sell off yesterday that followed its announcement of a $8 million public offering.
ENDRA Life Sciences plans to offer 6.1 million shares, plus warrants that, if exercised, could create another 181.5 million shares of common stock.
The company filed a Form 424B3 disclosing a the offering before Tuesday’s opening bell, prompting a 60% sell off in the session.
NDRA is up 65.5% on more than 112 million shares traded, but it’s still trading for well below its Monday closing price of $0.2170.
My Take: NDRA doesn’t look like it’s in a good place financially. Its offering is worth more than seven times its current market cap of $938,000. I would avoid this one unless you have a rock-solid trading plan.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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*Alternative investments are speculative and possess a high level of risk. No assurance can be given that investors will receive a return of their capital. Those investors who cannot afford to lose their entire investment should not invest. Investments in private placements are highly illiquid and those investors who cannot hold an investment for an indefinite term should not invest. Private credit investments may be complex investments and they are subject to default risk.