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- Stocks hover around record highs 📈
Stocks hover around record highs 📈
Futures are down as stocks continue to ram their head against the market's recent all-time high.
Chris Dinello
June 21, 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 📈
U.S. indexes edged lower on Monday, with the exception of the Dow, as stocks continue to hover around their latest all-time highs.
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Futures are down in early premarket trading. S&P 500 and Nasdaq composite futures are both down by about 0.2% at the time of writing.
What to Watch Today:
New flash data for both the U.S. manufacturing and services sectors will drop today at 9:45am. This news is unlikely to make any major waves, but the reports could still provide valuable economic insights for swing and long-term traders.
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Premarket Highlights 🔎
CarMax Posts 33% Drop in First-Quarter Profit 📉
CarMax reported a significant 33% decline in first-quarter profit on Friday, attributed to lower margins on vehicle sales that have impacted the used-vehicle industry. The company’s net income for the quarter ended May 31 was $152.4 million, or 97 cents per share, down from $228.3 million, or $1.44 per share, a year ago. Analysts had expected a profit of 94 cents per share.
Revenue and Sales 📊
CarMax's overall revenue for the quarter was $7.11 billion, falling short of analysts' estimates of $7.21 billion. Used vehicle revenue decreased by 5.4% to $5.68 billion.
The company cited vehicle affordability challenges, ongoing inflationary pressures, higher interest rates, and tightened lending standards as factors impacting its retail unit sales performance.
Market Conditions 🚗
The used-vehicle industry has faced profitability challenges as new vehicle availability has improved, offering better deals and trade-in options that deter potential buyers from considering used vehicles.
This shift has forced used vehicle dealers to sell cars at heavily discounted rates, contrasting with the pricing power they enjoyed during the pandemic when new vehicle supplies were limited.
Cost-Cutting Measures 💰
In response to the challenging market conditions, CarMax has implemented various cost-cutting measures, including reducing marketing and capital expenditures, to protect margins.
Despite these efforts, affordability concerns among consumers persist, further exacerbated by the limited supply of affordable vehicles. According to Cox Automotive, used-vehicle retail sales improved in May, reaching the highest level so far this year, though retail used-vehicle prices have remained consistently lower compared to the first five months of 2023.
Market Reaction 📉
CarMax shares fluctuated in premarket trading following the earnings report. The company’s performance reflects broader industry trends and the ongoing challenges faced by the used-vehicle market in maintaining profitability amid fluctuating consumer demand and economic pressures.
Featured Earnings 💰️
FactSet Research Systems [FDS] ... AM
CarMax [KMX] ... AM
Yiren Digital [YRD] ... AM
Economy 🏗
S&P flash U.S. services PMI [Jun] ... 9:45a
S&P flash U.S. manufacturing PMI [Jun] ... 9:45a
Existing home sales [May] ... 10:00a
U.S. leading economic indicators [May] ... 10:00a
Running Hot 🔥
Gainers
Zoomcar [ZCAR] >> +32.9%
Trinity Place [TPHS] >> +22.5%
DermTech [DMTK] >> +20.0%
Decliners
Docebo [DCBO] >> (33.7%)
Psyence Bio [PBM] >> (22.6%)
Abacus Life [ABL] >> (15.9%)
Sarepta Therapeutics [SRPT] - Last Close: $123.50
The FDA has approved a labeled indication for Sarepta’s Elevidys that would expand its use to include individuals with Duchenne muscular dystrophy.
U.S. drug regulators made the call after confirming the drug’s functional benefits.
Elevidys is currently undergoing a Phase 3 trial in non-ambulatory and older ambulatory individuals with Duchenne.
SRPT is up 34.4% on roughly half-a-million shares traded.
My Take: SRPT could be onto something big here. It’s currently on pace to set a new 52-week high, but its nearest verifiable support is all the way down at $140 per share.
Spectaire Holdings [SPEC] - Last Close: $0.34
After Thursday’s close, Spectaire Holdings filed a Form 8-K announcing several favorable deals.
The company made a deal with a law firm to reduce its balance owed from $6.2 million to just $2.74 million
Spectaire also entered into a settlement agreement Jefferies regarding fees owed, and it made a deal to acquire $600K assets from Corsario Ltd. in exchange for 1.5 million shares of SPEC.
SPEC is today’s top premarket mover with a 104% gain on over 17 million shares traded.
My Take: SPEC has had a busy couple of weeks negotiating all these deals. These positive catalysts could help the company pivot out of its downtrend. .
36Kr Holdings [KRKR] - Last Close: $0.3440
36Kr just dropped a buzzword-filled press release announcing a collaboration with SenseTime that would give them access to sophisticated AI tools.
The company plans to “embed artificial general intelligence technology in diverse media scenarios,” whatever that means.
36Kr also claimed that the deal will allow it to reach a much broader base of enterprise customers.
KRKR is a top mover with a 47.9% gain on over 23 million shares traded.
My Take: KRKR is riding yet another AI buzzword rally, and the move looks way overdone to me.
Ascent Solar Tech [ASTI] - Last Close: $0.1079
Early this morning, Ascent Solar announced a debt pay-off for outstanding balances related to a 2022 Securities Purchase Agreement.
The company said it has paid all remaining obligations to the institutional investor, including notes payable and related liabilities.
ASTI is up 23.1% on roughly 58 million shares traded this morning.
My Take: ASTI has has a tough year, and, while I don’t think this pay-off is enough to fuel a turnaround, it certainly doesn’t hurt.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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