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4 Red-Hot Gainers to Watch Today 🔥
Futures are down again, but several stocks are making big moves higher....
Chris Dinello
January 03, 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 benchmarks struggled in their first day of trading in the New Year. The Dow managed a small gain, while a rout in tech stocks drove the Nasdaq to a steep sell off.
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Futures are down again in early premarket trading. S&P 500 contracts are showing a 0.4% decline.
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Premarket Highlights 🔎
🚨 “Big Short” Eisman Says Sentiment Too Bullish
Steve Eisman, famed for his role in "The Big Short," expresses caution over the current bullish sentiment on Wall Street.
Despite his long-term optimism, Eisman, a senior portfolio manager at Neuberger Berman, voices concerns in a CNBC "Fast Money" interview.
His worries center around high expectations, particularly regarding the "Magnificent Seven" tech stocks and the anticipation of multiple interest rate cuts in 2024.
📊 Market's Mixed Opening to the Year
The year's first trading day saw mixed results:
Nasdaq's Decline: The tech-heavy index dropped 1.6%.
S&P 500's Fall: A slight decrease of 0.6%.
Dow's Minimal Gain: A contrast to the overall trend with a slight increase. These movements follow a strong 2023, where Nasdaq rallied 43%, the S&P 500 soared 24%, and the Dow climbed nearly 14%.
🤔 Eisman's Warnings Amidst Bullishness
Eisman reflects on the market's journey, climbing a "wall of worry" throughout the previous year. He highlights a general bullish consensus but cautions that any disappointments could destabilize the market. Eisman points out that fewer rate hikes than the market anticipates could act as a negative short-term catalyst.
🏛️ Federal Reserve's Rate Cut Expectations
Eisman draws parallels with former Fed Chief Paul Volcker's experiences in the 1980s, suggesting the current Fed might adopt a more cautious stance towards rate cuts.
He anticipates only one rate cut unless a recession occurs, believing the Fed doesn't need to be aggressive in trimming rates if the economy avoids recession.
Eisman's analysis reminds investors of the delicate balance between optimism and the realities of economic and monetary policies, and, given his penchant for accurate contrarian predictions, you should probably take his warning seriously.
What to Watch Today 👀
Tech Stocks
One of December's hottest trades is quickly cooling off in the New Year.
The Nasdaq suffered its biggest decline since October yesterday, and futures are down again in the premarket. Has the tech rally peaked? Doubtful, but it could be the beginning of a pullback. The S&P 500 and Nasdaq are still sitting relatively close to new record highs, but the indexes will need the tech sector to perform to break through increasingly stiff resistance around their all-time highs.
Featured Earnings 💲
UniFirst [UNF] ... AM
Cal-Maine Foods [CALM] ... PM
Simulations Plus [SLP] ... PM
Resources Connection [RGP] ... PM
Economy 🏗
U.S. job openings [Nov] ... 10:00a
ISM manufacturing [Dec] ... 10:00a
Auto sales [Dec] ... TBA
Running Hot 🔥
Gainers
Ucommune Intl. [UK] >> +53.0%
Sigma Labs [SASI] >> +65.5%
First Wave Bio [FWBI] >> +64.9%
Decliners
Flex [FLEX] >> (25.6%)
Hallmark [HALL] >> (20.8%)
Nemaura Medical [NMRD] >> (25.1%)
Dyne Therapeutics [DYN] - Last Close: $13.06
Upbeat data from trials of DYNE-101 in mytonic dystrophy type 1 and DYNE-251 in Duchenne muscular dystrophy patients is boosting this micro-cap biotech.
Dyne said trails of DYNE-101 and D-251 helped the company refine dosing, and clinicians observed improved muscle delivery and other promising developments.
Dyne’s CEO, Joshua Brumm: "This positions us to optimize dose and dose regimen in both trials with the goal of initiating registrational cohorts as we end 2024."
DYN is a top mover with a 44.3% gain on more than 2 million shares traded.
My Take: DYN has been gaining steadily over the past few weeks. Shares are up 64.5% over the past 3 months. Today’s catalyst could help it extend its hot streak even further.
NextImmune [NEXI] - Last Close: $2.375
Today’s hottest premarket stock is this clinical-stage biotech stock with a float of just $2.51 million, as of Tuesday’s close.
Shares are rocketing higher despite no obvious catalyst. A quick survey of social media seems to indicate the stock is being targeted by day traders.
The “Wall Street Bets” style buying raid seeks to take advantage of the stock’s small float and elevated short rate, which measured in at 4.61% on 12/15.
NEXI is today’s top premarket mover with a 137.9% gain on nearly 5 million shares traded so far.
My Take: NEXI is getting a big boost from the move but I don’t think it will last. Several highly visible influencers are advising followers to dump this stock and move into $UK, which has an even smaller float.
ABVC BioPharma [ABVC] - Last Close: $1.20
This tiny biotech and its BioLite subsidiary has received 46 million shares of AiBtl BioPharma in the first milestone payment of a global licensing deal.
Under the terms of the deal, the privately-held company’s shares were valued at roughly $10 apiece, bringing the payment’s total value to $460 million.
ABVC Bio said it also expects to receive additional milestones under the agreement, including $7 million cash and 5% royalties, up to $200 million.
ABVC is a top performer this morning with a 78.3% gain on 13 million shares traded in the premarket.
My Take: ABVC has been in a moderately positive trend since early December, and this catalyst could help it break out of its trading ranch. Watch for resistance at the $2 mark.
Trinity Place Holdings [TNPH] - Last Close: $0.1142
This struggling real estate firm is getting a boost today after one of its lenders granted it some much-needed relief on its debt.
According to a late Tuesday 8-K filing, Trinity’s mortgage lender agreed to extend forbearance on the loan until January 31st.
The extensions could give the company some much needed cash flow flexibility that will allow it to better serve its debts and maintain vital operations.
TNPH is up 94.1% on 29 million shares traded.
My Take: This is a huge move, but I am bearish on TNPH. It’s chart is very ugly, and I think its ride on the struggle bus is just getting started.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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