Stocks aim to rebound after CPI sell-off

Stronger-than-expected CPI inflation drove a steep sell-off on Tuesday, but futures are already recovering.

Author

Chris Dinello
February 14, 2024

Good Morning! 

It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.

Happy Valentine’s Day. I love you all! ❤️

Now, let's get ready to trade!

Markets 📈

Stocks opened the trading week with a mixed performance on Monday. The S&P 500 and Nasdaq suffered a small pullback, while the Russell 2K rallied.

  • Dow [-1.3%]

  • S&P 500 [-1.3%]

  • Nasdaq [-1.8%]

  • Russell 2K [-3.9%]

Futures are on the rise in early trading. S&P 500 contracts are up 0.5%.

What to Watch Today:
Inflation data is due out this morning that could have a tremendous impact on investor sentiment and the outlook for rate cuts. Economists are hoping the top-line annual inflation rate dipped to 2.9% last month, which would mark its smallest increase in years.

Gold is an effective way to protect portfolios from the forces of war and uncertainty.

But gold reserves have declined, along with a lack of new gold discoveries.

To make up for growing gold demand, more new mining projects and gold discoveries are needed - particularly in safe jurisdictions such as the U.S.

Premarket Highlights 🔎

📉 Today's CPI Spotlight: A Glimpse at January's Inflation

This morning, all eyes are on the consumer-price index (CPI) for January, set to drop at 8:30 a.m. ET, with expectations pointing to a slight cooling off in inflation.

🔍 Outlook
Economists have penciled in a modest 0.2% rise in the CPI for January from December, suggesting a gentle ease from the previous month's 0.3% uptick.

The core CPI, which gives us the lowdown minus the food and energy rollercoaster, is also on the radar, anticipated to mirror December's 0.3% month-on-month climb.

📅 Yearly Snapshot
Looking back over the past year, inflation's pace is predicted to have decelerated to 2.9% through January, stepping down from December's 3.4% annual clip. The core CPI's yearly dance is expected to show a similar softening, from December's 3.9% to a slightly cooler 3.7% rate.

As the clock ticks down to the release, these numbers offer a crucial checkpoint on inflation's trajectory, with potential implications for monetary policy and market movements.

Featured Earnings 💰️ 

  • CME Group [CME] ... AM

  • Kraft Heinz [KHC] ... AM

  • Williams Companies [WMB] ... AM

  • IGVIA [IQV] ... AM

  • Global Payments [GPN] ... AM

  • Martin Marietta Materials [MLM] ... AM

  • Cisco [CSCO] ... PM

  • Equinix [EQIX] ... PM

  • Occidental Petroleum [OXY] ... PM

  • Energy Transfer [ET] ... PM

Economy 🏗

  • Chicago Fed President Austan Goolsbee speaks ... 9:30a

  • Fed Vice Chair for Supervision Michael Barr speaks ... 4:00p

Running Hot 🔥

Gainers

  • Datasea [DTSS] >> +384.2%

  • Earlyworks ADR [ELWS] >> +247.2%

  • Brera Holdings [BREA] >> +222.5%

Decliners

  • Azitra [AZIT] >> (68.2%)

  • Quidel Corp [QDEL] >> (35.7%)

  • Ohmyhome [OMH] >> (31.8%)

Uber Technologies [UBER] - Last Close: $68.99

Ride-share magnate Uber just announced it’s allocating $7 billion to its first-ever share buyback program.

The company decided to launch the buyback after one of its most profitable years ever.

UBER is leading the S&P 500 with a 7.4% gain.

My Take: I am not a fan of UBER, but shares have more than doubled over the past 12 months and this buyback could provide additional price support.

enGene [ENGN] - Last Close: $7.62

This Canadian biotech announced it has agreed to sell 20 million shares of stock at $10 apiece in an over-subscribed private placement.

The transaction represents a 31% premium to ENGN’s Tuesday closing price, and it’s expected to close on Feb. 16th.

ENGN is up 68.5% on over 100K shares traded, so far.

My Take: Prior to today’s move, ENGN was facing resistance at $8 and $12 per share. It could find support at either of these levels if it can maintain its gains.

Inspira Technologies [IINN] - Last Close: $0.96

Shares of this tiny biotech are rallying after announcing its first-ever U.S. patent approval for its orbiting blood oxygenation delivery system.

The system is described as a "a core technology of the revolutionary INSPIRA™ ART500 device" in a company press release.

INN is up 57.2% on nearly 10 million shares traded in the premarket.

My Take: IINN has been trending higher for the past few sessions, and it saw a volume spike yesterday. There could be potential here.

Cogent [COGT] - Last Close: $5.46

Another micro-cap biotech is also surging after announcing an oversubscribed private placement that’s expected to bring in $225 million.

The offering will include 17 million shares of common stock priced at $7.50 per share, representing a 37% premium to COGT’s Tuesday's closing price.

Earlier this week, Needham reiterated a “buy” rating and maintained its $15 price target on this stock.

COGT is up 42.8% on more than 1.5 million shares traded.

My Take: COGT still has an intact trend line, despite a recent pullback. This catalyst could help it regain its form.

That's it for today! Thanks for reading, and good luck out there!

Best Regards,

— Chris D.
Elite Trade Club

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