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- Futures dip with Jobs data on deck 📉
Futures dip with Jobs data on deck 📉
Stocks hope to snap their start-of-the-year slump before they head into the weekend...
Chris Dinello
January 05, 2024
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Happy Friday! I hope you have a great weekend. Now, let's get ready to trade!
Markets 📈
The stock market continued to see declines on Thursday, with most major indexes notching fractional losses.
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Futures are in the red this morning, with both S&P 500 and Dow contracts down 0.2% in early trading.
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Premarket Highlights 🔎
📉 Stocks 2024 Stumble Worries Wall Street
The stock market in 2024 has kicked off with notable volatility, causing unease among investors and market forecasters.
The early days of the year have seen major indexes retreat from their robust performance at the close of 2023.
The S&P 500 is down 1.4%, the Dow Jones Industrial Average has dropped 0.7%, and the Nasdaq Composite has seen a significant 2.8% fall, marking its worst beginning since 2005.
📊 New Year Sentiments
This shaky start is particularly concerning for those who subscribe to the January Barometer theory, which suggests that the market's performance in January can be a predictor for the rest of the year.
The decline in major indexes has put this belief to the test, with investors closely watching for any signs of a potential turnaround or further decline.
🔻 Tech Stocks Slide
Notably, the big tech stocks that were pivotal in the last year's rally have seen a reversal.
Shares of Apple (AAPL) have dipped 4.3%, Tesla (TSLA) has seen a 4% drop, and Nvidia (NVDA) has decreased by 3.9%.
These shifts are driven by growing concerns about the trajectory of interest rates and their broader impact on the tech sector and the economy.
🔍 Reason for Concern?
While the initial days of trading offer limited insight for long-term investors, they raise questions about the market's direction in the coming months.
Many are contemplating whether this early-year selloff is just a temporary hiccup or an indicator of a more prolonged downturn in the stock market.
What to Watch Today 👀
December Jobs Report
The last BLS employment report for 2023 drops this morning, and it will be a crucial piece of data for investors seeking to gauge the health of the U.S. economy.
Yesterday’s ADP employment report, which primarily measures private sector payrolls, came in at 164,000 and easily topped the conesnsus of 115,000. This bodes well for today’s unemployment report, but, since the market wants rate cuts, we could see a negative reaction if the number is too strong.
Featured Earnings 💲
Constellation Brands [STZ] ... AM
Greenbrier Companies [GBX] ... AM
AngioDynamics [ANGO] ... AM
Economy 🏗
U.S. employment report [Dec] ... 8:30a
U.S. unemployment rate [Dec] ... 8:30a
U.S. hourly wages [Dec] ... 8:30a
ISM services [Dec] ... 10:00a
Factory orders [Nov] ... 10:00a
Running Hot 🔥
Gainers
Inspire Veterinary [IVP] >> +4.4%
Canoo [GOEV] >> +8.9%
FG Holdings [FGH] >> +11.1%
Decliners
Applie Therapeutics [APLT] >> (31.4%)
Agllon Health [AGL] >> (27.9%)
Allogene Therapeuitcs [ALLO] >> (21.5%)
Ainos [AIMD] - Last Close: $1.73
This tiny stock is gaining ground after regaining compliance with Nasdaq’s $1 minimum bid price requirement.
Ainos announced it regained compliance with the rule earlier this week, but the market’s reaction was muted at first.
Shares are down 15.6% over the past five days, despite the good news from Nasdaq, but prices are rebounding in today’s premarket.
AIMD is currently leading the premarket with a 154.3% gain on over 10 million shares traded.
My Take: AIMD’s rally could be the result of targeted buying of its shares, since the stock has a very small float at just $8 million.
Dermata Therapeutics [DRMA] - Last Close: $0.6099
An after-hours announcement of a new patent is skyrocketing this tiny biotech stock ahead of today’s opening bell.
Yesterday, Dermata Therapeutics said it was issued a new patent in Japan for its DMT410 program to treat hyperhidrosis.
The program utilizes the company’s Spongilla technology to deliver a therapeutic dose of botulinum toxin to treat the condition.
CEO Gerry Proehl said in a press release, “We are excited about the opportunities the DMT410 program can bring to patients.”
DRMA is up 63.9% on news of the patent, and nearly 7 million shares have been traded in the premarket so far.
My Take: DRMA has had a rough run over the past couple of months, but it seems to have found strong support at the 60-cents mark. It could also find support at $1 if it can hold its gains through the close.
Safe and Green Development [SGD] - Last Close: $1.36
This company just provided an update on a previously announced letter of intent to acquire Majestic World Holdings.
In the press release, the company said it plans to complete the acquisition by the end of Q1.
"The successful BETA run earlier in 2023 has given us the confidence to move forward with a complete acquisition of the XENE Platform,” CEO David Villareal said in the press release.
SGD is a top mover with a 66.1% gain on more than 11 million shares traded.
My Take: SGD has had a pretty unimpressive run since the start of December, but this deal could give the stock some momentum.
Immunic [IMUX] - Last Close: $1.43
This under-the-radar biotech stock is getting a boost after announcing a new private placement worth up to $240 million.
Early this moning, Immunic said it entered into a securities purchase deal with select accredited investors in a three-tranche offering.
The first tranche is an upfront payment of $80 million at $1.43 per share, expected to close on January 8th, 2024.
Additional payments will be triggered down the road if the company acheives certain clinical and developmental milestones.
IMUX is up 23.0% on roughly 7.5 million shares traded today.
My Take: IMUX has been up-trending since bottoming out at about $1 apiece in November, and this catalyst could put more gas in its tank.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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