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Top movers to watch on Monday 👀
Earnings and the fall-out from last week's jobs report will likely be the dominant themes driving today's trading session...
Chris Dinello
February 05, 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 closed out last week on a high note, thanks to a blow out January jobs report. The Nasdaq overperformed thanks to a rally in tech stocks.
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Index futures are edging lower in early trading. S&P 500 contracts are down by 0.1% at the moment.
What to Watch Today:
Earnings are headlining today’s schedule. We’ll hear from McDonald’s, Caterpillar, and a few other big names. It’s a quiet day for economic news, so these reports could have a pronounced impact on today’s trading action.
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Premarket Highlights 🔎
📺 Fed Chair Powell Hints at Rate Cuts
In an uncommon move, Jerome Powell graced the airwaves on CBS's "60 Minutes," sharing insights into the Federal Reserve's current monetary policy stance.
His message? It’s time to ponder rate reductions, yet there's no need to hasten the process given the economy's robust performance.
⚖️ Striking a Balance:
Navigating the tightrope between stifling growth and stoking inflation, Powell emphasized the Fed's careful approach.
With economic indicators stronger than anticipated, the Fed aims to ensure inflation consistently trends towards their 2% target before making moves to lower rates.
🔍 A Closer Look:
Despite the Fed maintaining the federal-funds rate at its peak, Powell highlighted the unexpected resilience of the U.S. economy.
This resilience, coupled with a deceleration in wage and price hikes, hints at the potential for a soft landing—a scenario where the economy slows just enough to curb inflation without triggering a recession.
📈 The Rate Debate:
As the economy continues to defy recession forecasts, Powell's remarks underscore the Fed's cautious optimism.
The focus remains on achieving sustainable inflation reduction without derailing economic growth, marking a delicate phase in the Fed's policy trajectory.
Featured Earnings 💰️
McDonald's [MCD] ... AM
Caterpillar [CAT] ... AM
Air Products [APD] ... AM
Estee Lauder Companies [EL] ... AM
IDEXX Laboratories [IDXX] ... AM
ON Semiconductor [ON] ... AM
Vertex Pharmaceuticals [VRTX] ... PM
NXP Semiconductors [NXPI] ... PM
Simon Property Group [SPG] ... PM
Palantir [PLTR] ... PM
Economy 🏗
S&P final U.S. services PMI [Jan] ... 9:45a
ISM services [Jan] ... 10:00a
Running Hot 🔥
Gainers
Yield 10 Bio [YTEN] >> +76.6%
Protagenic Therapeutics [PTIX] >> +28.8%
BioRestorative Therapeutics [BRTX] >> +16.7%
Decliners
NanoString Tech [NSTG] >> (58.0%)
DMK Pharma [DMK] >> (55.4%)
TruGolf [TRUG] >> (53.0%)
Estée Lauder [EL] - Last Close: $134.12
The makeup giant posted a double-line beat on in its fiscal Q2 earnings report this morning and announced a major cost-cutting effort.
Estée Lauder beat the Street’s expectations for earnings and revenues, but both figures were down compared to last year.
The company also said it plans to cut 3% to 5% of its workforce to help cut costs under a plan that could save the company as much as $500 million.
EL is leading the S&P 500 with a 16.7% gain on 325K shares traded.
My Take: EL is down roughly 50% from its 52-week high. This report could prove to be turning point for the stock if it can successfully execute on its cost-cutting efforts.
4D Molecular Therapeutics [FDMT] - Last Close: $17.49
Over the weekend, 4DMT published upbeat interim data from a Phase 2 PRISM clinical trial of intravitreal 4D-150 in wet AMD patients.
CEO David Kirn said the data strongly validates 4D-150’s potential as a safe, convenient, durable, and transformational therapeutic for wet AMD.
FDMT is one of this morning’s top movers with a 65.2% gain on roughly 750K shares traded so far.
My Take: This rally has lifted FDMT clear past stiff price resistance at arounf $21.50, and the stock is on pace to set a new 52-week high if it can hold onto its gains.
GRIID Infrastructure [GRDI] - Last Close: $2.00
This newly-listed Bitcoin miner is rebounding in today’s premarket after selling off through every trading session last week.
GRIID hit the Nasdaq NMS on January 29th following a SPAC merger, but shares are down by 67.4% since it made its debut.
However, the slide may have finally bottomed out because GRDI is breaking out on strong volume in today’s premarket.
GRDI is up 23.5% on more than 4 million shares traded.
My Take: Bitcoin didn’t make any dramatic moves over the weekend, so this move is more about GRDI than the crypto it mines. It could mark the beginning of a pivot.
Chenghe Acquisition [CHEA] - Last Close: $5.33
The SPAC fell 49.2% on Friday after shareholders voted to approve its merger with SEMILUX LTD, but shares are rebounding in today’s premarket.
Shareholders approved the business combination by a decisive margin, clearing the way for a merger in the near future.
After a steep sell-off on Friday, the stock has recaptured all of its losses and then some. CHEA is up 113.7% on more than 3 million shares traded.
My Take: CHEA is likely to see significant volatility this week as the market digests the upcoming SPAC merger.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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