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- Big Bank earnings on deck 💰
Big Bank earnings on deck 💰
Big Bank earnings are coming in hot; plus new data on producer inflation....
Chris Dinello
January 12, 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 posted a mixed performance on Thursday, with most major indexes ending the day within 0.1% of where they began it. Small-caps underperformed relative to their larger cohorts.
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Futures are headed lower in early traded. S&P 500 contracts are currently sitting on a 0.3% decline.
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Premarket Highlights 🔎
✈️ Delta CEO Says Flyers Still Booking
Delta Air Lines' Chief Executive Ed Bastian reports a healthy consumer appetite for travel, following a record-breaking revenue year in 2023.
The airline experienced a notable 15% increase in revenue from premium seat tickets in the fourth quarter compared to the previous year, outstripping growth in economy class.
This surge is attributed to a record number of passengers opting to pay for these seats instead of relying on free upgrades.
🔮 Delta's 2024 Outlook
Delta anticipates adjusted per-share profits to be between $6 and $7 in 2024, slightly above the adjusted profits of $6.25 per share in 2023.
Despite the exceptional rise in international travel last year, Bastian remains optimistic about continued overseas travel.
He expects international fares to stabilize at higher levels than pre-pandemic, aligning with the airline's increased production costs.
🛬 Market Dynamics
Bastian also noted lessening volatility within the U.S. travel market, attributed partly to some airlines scaling back their flight plans.
The surge in U.S. travelers heading abroad left domestic flights with excess capacity, leading to decreased fares.
Budget airlines, which predominantly cater to leisure travelers within the U.S., felt the brunt of this shift.
🔍 737 MAX 9 Grounding
Delta has not been impacted by the recent grounding of the 737 MAX 9, as the airline does not operate this aircraft.
Bastian expressed confidence in Boeing's handling of the recent safety concerns, emphasizing that the aircraft manufacturer is taking the issue seriously.
In summary, Delta's outlook for 2024 remains optimistic, with a strong focus on maintaining robust international travel and navigating the shifting dynamics of the domestic U.S. market.
What to Watch Today 👀
Earnings Season Kick-Off
Today’s the first major day for corporate earnings since the start of the year, and we have plenty of big names on today’s list. Most of Wall Street’s biggest banks will report before the open, including Chase, BoA, Wells Fargo, and Citi. Big bank earnings can always provide valuable insights into the health of the U.S. economy, so they’re always worth more than a passing look. These reports should set the tone for the Q4 2023 earnings season.
Featured Earnings 💲
UnitedHealth Group [UNH] ... AM
JPMorgan Chase [JPM] ... AM
Bank of America [BAC] ... AM
Wells Fargo [WFC] ... AM
BlackRock [BLK] ... AM
Citigroup [C] ... AM
Bank of New York Mellon [BK] ... AM
Delta Air Lines [DAL] ... AM
Economy 🏗
PPI [Dec] ... 8:30a
Core PPI [Dec] ... 8:30a
Running Hot 🔥
Gainers
Charge Enterprises [CRGE] >> +133.0%
Jaguar Health [JAGX] >> +39.3%
Quhuo [QH] >> +21.9%
Decliners
Momentus [MNTS] >> (38.4%)
VCI Global [VCIG] >> (35.2%)
Sealsq Corp [LAES] >> (30.9%)
FlexSteel [FLXS] - Last Close: $18.02
A strong preliminary earnings release is rallying shares of the micro-cap furniture maker FlexSteel.
After Thursday’s closing bell, the company reported higher-than-expected preliminary Q2 EPS of $0.57, up from $0.08 a year ago.
Analysts only expected the company to post earnings of $0.27 per share.
Revenues of $100.1 million also topped the Street’s $96.8 million target by a healthy margin.
FlexSteel’s fiscal Q3 and Q4 guidance fell in line with expectations, and the company said it will publish its final earnings numbers on Feb. 5th.
FLXS is a top mover with a 21.0% gain, but there’s not a lot of volume supporting the move at the moment.
My Take: If you want to get in on FLXS, it might be wise to wait until the market opens. Volume is pretty thin in the premarket, so you could run into trouble if you need to make a speedy retreat.
Applied UV [AUVI] - Last Close: $2.28
This industrial tech company is taking off after announcing it will launch its Fighter Flex LED solution at an upcoming industry conference.
Applied UV said it will unveil the product at the AHR Expo on January 22nd, and it’s currently finalizing distribution agreements with several brands.
CEO Max Munn said, “We believe this market holds an annual sales opportunity in the hundreds of millions of dollars.”
AUVI is up 23.2% on nearly 4 million shares traded at the time of writing.
My Take: AUVI may have bottomed out at $1.50 per share in mid-December. Since then, the stock has performed well, and today’s catalyst could help it sustain its momentum.
Spectral AI [MDAI] - Last Close: $2.55
A recent announcement from this tiny AI company is giving its shares a boost in today’s premarket trading session.
Yesterday morning, the company said it has begun enrollment in a pivotal study to validate its DeepView AI system to diagnose burn injuries.
The pivotal study should be the final step before submitting an FDA marketing authorization for the burn indication in 2025.
Trials will be conducted in burn centers and emergency departments across the US, enrolling both adults and pediatric patients.
MDAI is up 23.5% on nearly 2 million shares traded.
My Take: MDAI seems to have support at $2.50, and it just had a big volume spike yesterday after it published this press release. This could have potential as a momentum play.
Volcon [VLCN] - Last Close: $0.099
A recent SEC filing revealed that an institutional investor has quietly built up a sizeable position in the micro-cap electric ORV company.
According to a Form SC13G/A filing dated Jan. 11th, Empery Capital and its associates have amassed a 9.99% stake in the company.
The position included 500K shares of common stock, plus notes & warrants that can be converted to another 40 million common shares.
VLCN is a top mover on the news. It’s up 64.1% on more than 22 million shares traded this morning.
My Take: VLCN has a float of just $1.27 million, and it’s short rate recently came in a 9.55%. There could be some manipulation afoot here, so make sure you don’t fall into a P&D.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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