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- Yields rise with big week ahead 📈
Yields rise with big week ahead 📈
Investors are adjusting their positions in the wake of Friday's May jobs report.
Chris Dinello
June 10, 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 last week with a whimper as most indexes drifted lower on Friday. The Russ2K sold off for more than a point, while large-caps benchmarks closed just below where they opened.
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Futures are sitting just below flat in early trading. S&P 500 futures are down by less than 0.1%.
What to Watch Today:
With no major earnings & economics updates on today’s calendar, the big story will be how the market performs in the wake of Friday’s May jobs report. The latest round of jobs data didn’t get a great reception on the market, but some traders are hopeful it could expedite the Fed’s rate cut outlook. The market’s performance in the coming days will say a lot about where investor sentiment stands on this particular issue.
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Premarket Highlights 🔎
Treasury Yields Inch Up Ahead of Fed Meeting 📈
U.S. Treasury yields saw an uptick on Monday as investors turned their focus towards the upcoming Federal Reserve meeting and crucial inflation figures slated for release later in the week.
10-Year 📊
The yield on the benchmark 10-year Treasury climbed nearly 4 basis points to reach 4.465%, reflecting investor anticipation surrounding upcoming economic indicators and monetary policy decisions.
Fed and Inflation Data 🏦
This week, investors await the Federal Reserve's interest rate decision and policy guidance, alongside fresh inflation data releases. The Fed's meeting on Tuesday and Wednesday is expected to maintain interest rates, with attention shifting to post-meeting commentary for insights into future rate movements.
Market Expectations 📈
While the likelihood of immediate rate cuts remains low, investors closely monitor the Fed's statements for indications of future policy adjustments. Market sentiment suggests a 49% chance of rate cuts in September, as per CME Group's FedWatch tool.
CPI Reports 📊
The publication of consumer and producer price index reports for May will provide critical insights into inflation trends. Policymakers emphasize the importance of sustained evidence indicating a cooling inflationary trajectory before considering rate adjustments.
May Jobs 📈
Despite hopes for economic moderation, the May jobs report revealed robust nonfarm payroll growth, surpassing analyst forecasts. With an increase of 272,000 jobs, the figures exceeded both April's revised count and previous estimates, signaling ongoing economic resilience.
Navigating Uncertainty 🔄
Investors tread cautiously amidst evolving economic data and Fed deliberations, seeking clarity on the trajectory of monetary policy and its implications for market dynamics. The week ahead promises heightened volatility as market participants interpret incoming data releases and central bank communications.
Featured Earnings 💰️
Optical Cable [OCC] ... AM
Yext [YEXT] ... PM
Skillsoft [SKIL] ... PM
Zedge [ZDGE] ... PM
Mind Technology [MIND] ... PM
Economy 🏗
None scheduled
Running Hot 🔥
Gainers
New Horizon Aircraft [HOVR] >> +105%
AgriFORCE Growing [AGRI] >> +39.5%
Presto Automation [PRST] >> +40.0%
Decliners
Sunshine Biopharma [SBFM] >> (32.4%)
Visionary Education [GV] >> (29.3%)
Perion Network [PERI] >> (24.4%)
ICC Holdings [ICCH] - Last Close: $16.00
ICC has agreed to be acquired by Mutual Capital Group in an all-cash deal valued at $73.8 million, the companies announced Saturday.
Under the deal, ICCH shareholders will receive $23.50 for each share of common stock, representing a premium of roughly 47% per share.
The deal is expected to close sometime in Q4.
ICCH is up 45.1% but volume is very thin at less than 10K shares traded.
My Take: Solid deal for ICCH shareholders but it’s probably a little too late to chase after this one if you’re not already in position.
Southwest Airlines [LUV] - Last Close: $27.75
Paul Singer’s Elliott Investment Management has built a $2 billion stake in Southwest Airlines, according to a Sunday report from The Wall Street Journal.
The publication claimed that the activist hedge fund plans to push for changes aimed at turning around the company’s recent underperformance.
LUV is up 8.0% on just under 1 million shares traded.
My Take: LUV hasn’t had a great year, but Singer’s position could drum up some interest it. However, LUV has a crazy high P/E ratio compared to its industry cohorts, so there could be lots of room to fall here.
Big Tree Cloud [DSY] - Last Close: $1.91
China’s Big Tree Cloud is rallying after successfully closing its business combination with Plutonian Acquisition Corp.
The stock began trading under the new ticker symbol and name on Friday, and shares initially suffered steep declines upon their debut, falling 21%.
However, Big Tree Cloud is rebounding in today’s premarket with a 99.5% rally on more than 6 million shares traded.
My Take: DSY’s initial sell-off may have been a tad overdone, but this move also has potential to be a pump & dump, so tread lightly here.
Spectaire [SPEC] - Last Close: $0.4284
Spectaire just landed an initial purchase order of its AireCore units from American Ag Energy, a biomass-to-fuel reactor company.
The company says its AireCore units enable precise tuning of the reactors so it can expand its share of the $91 billion biomass energy market.
“Our mass spectrometers will deliver the detailed analytical capabilities needed to optimize their reactors, enhancing fuel output and operational efficiency,” said CEO Brian Semkiw.
Financial details of the purchase order weren’t disclosed, but SPEC is up 61.% on more than 7 million shares traded in light of the news.
My Take: SPEC is down 73% over the past 3 months, but this catalyst could put it back on the right track.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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