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- Futures heat up after Fed decision 📈
Futures heat up after Fed decision 📈
Stocks are pointing higher in early trading after upbeat CPI data and dovish Fed comments.
Chris Dinello
June 13, 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 marched higher on Wednesday, driven by a strong CPI report and dovish comments from Federal Reserve officials. The Dow posted a small loss, while the Nasdaq and Russ2K led the push higher.
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Futures are mixed after yesterday’s rally. Dow contracts are down 0.2%, while S&P 500 futures are holding onto a thin 0.1% gain in early trading.
What to Watch Today:
The weekly jobless claims report could provide some valuable ancillary data to accompany yesterday’s CPI report. The job market and inflation conditions are probably the two greatest drivers of Federal Reserve policy, so it’s worth keeping an eye on today’s jobless claims update.
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Premarket Highlights 🔎
U.S. Treasury Yields Rise as Fed Signals Only One Cut This Year 📈
U.S. Treasury yields increased on Thursday after the Federal Reserve kept interest rates unchanged and signaled only one rate cut is expected before the end of the year.
Treasury Yield Movements 📊
The 10-year Treasury yield rose by more than 2 basis points to 4.316%. This followed a brief dip to 4.25% in the previous session, marking its lowest level since April 1. Meanwhile, the 2-year Treasury yield increased by 1 basis point to 4.76%. Yields and prices move inversely, with one basis point equating to 0.01%.
Fed Decision 🏦
On Wednesday, the Fed held rates steady at 5.25%-5.50% and revised its forecast, now projecting only one rate cut this year, down from the three cuts forecasted in March.
Inflation Outlook 🔭
The Fed showed slight optimism that inflation is on track to return to its 2% goal, which could allow for some policy easing in the coming months. The post-meeting statement noted, “Inflation has eased over the past year but remains elevated,” and acknowledged “modest further progress toward the Committee’s 2 percent inflation objective.”
Economic Data 📅
Attention now turns to upcoming economic data, with initial jobless claims for the week ending June 8 and the producer price index for May set to be released at 8:30 a.m. ET. These data points will provide further insights into the economic landscape and potential implications for future Fed policy decisions.
Featured Earnings 💰️
Signet Jewelers [SIG] ... AM
Korn Ferry [KFY] ... AM
John Wiley & Sons [WLY] ... AM
D-Market Electronic Services & Trading [HEPS] ... AM
The Lovesac Company [LOVE] ... AM
Adobe [ADBE] ... PM
Rh [RH] ... PM
Ammo [POWW] ... PM
Iteris [ITI] ... PM
RF Industries [RFIL] ... PM
Senstar Technologies Corporation [SNT] ... PM
Economy 🏗
Initial jobless claims [Jun] .. 8:30a
Producer price index [May] ... 8:30a
Running Hot 🔥
Gainers
NeoConcept [NCI] >> +62.4%
Unusual Machines [UMAC] >> +14.2%
NXU [NXU] >> +9.5%
Decliners
Assure Holdings [IONM] >> (52.1%)
Cara Therapeutics [CARA] >> (26.7%)
DDC Enterprise [DDC] >> (27.2%)
Longeveron [LGVN] - Last Close: $1.81
Longeveron rallied 120% on Wednesday after Zacks Small-Cap Research issued a $15.10 price target, and it’s still gaining in today’s premarket.
Zacks said the company is using its primary treatment, Lomecel-B, to treat a rare pediatric heart condition, and the company just had an “encouraging meeting” with trial investigators.
LGVN is up 43.6% on over 17 million shares traded in today’s premarket alone.
My Take: LGVN has had a rough year so far, but this news could be the catalyst it needs to spring back into a positive trend line.
BioRestorative Therapies [BRTX] - Last Close: $1.35
This tiny biotech is reportedly in “substantive discussions” with an unnamed company regarding a license for its ThermoStem® metabolic IP.
BioRestorative said ThermoStem has several patents, and its potential license partner is a “leading commercial stage regenerative medicine company.”
BRTX is up 40.8% on roughly 6 million shares traded.
My Take: BRTX could be on the verge of a licensing announcement, but, the real question is, how much of the good news is already priced into the stock after this rally?
FangDD [DUO] - Last Close: $0.61
Fangdd is surging after announcing changes to its board and committee early yesterday morning.
The company appointed Mr. Jun Lou as a company director, a chairman of one committee, and a member of two other internal committees.
Lou will replace Mr. Zhen Xie, who recently resigned from these positions citing personal reasons. The changed became effective on June 10th.
DUO is up 21.0% on roughly 4 million shares traded.
My Take: DUO is coming off a massive pullback, which could explain why this move seems to be somewhat exaggerated,
Bionomics Ads [BNOX] - Last Close: $0.6988
Bionomics is taking off after an analyst published a bullish note on the stock yesterday afternoon.
Analysts from HC Wainwright & Co reiterated their “buy” rating on BNOX and maintained an $8 price target.
The stock closed Wednesday with a 1.6% gain, but the rally went into overdrive in today’s premarket.
BNOX is up 12.3%, but volume is thin at around half-a-million shares traded.
My Take: BNOX is also coming off a sudden sell off, and this move could be exaggerated as a result.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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