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NVDA Earnings Rally the Market
A rising tide in the form of NVDA's blowout Q4 earnings report is rallying American indexes in today's premarket.
Chris Dinello
February 22, 2024
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Apologies for missing the Closing Bell Roundup yesterday. I had a big delivery show up just before the closing bell sounded. 🤠
Tractor delivery!
We’ll be back to our regularly scheduled programming today, so let's get ready to trade!
Markets 📈
The market’s struggles continued on Wednesday, with mixed performances from U.S. indexes. Small-caps and the Nasdaq took losses, while the Dow and S&P 500 notched minuscule gains.
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Futures are on the rise in the premarket, thanks to a blowout earnings report from Nvidia. S&P 500 contracts are showing a 1.2% gain in early trading, indicating the market will open to a big rally.
What to Watch Today:
Nvidia’s strong after-market earnings report on Wednesday is providing a major boost to investor sentiment in today’s premarket. Tech stocks are set to break out at the open, and the move could fuel a broad rally in today’s session.
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Premarket Highlights 🔎
🤫 China Floats Strategic Ban on Short Sales
China's latest move to ban net sales of equities during the critical opening and closing 30 minutes of trading sessions throws a lifeline to its tumbling stocks.
Analysts interpret this as a strategic play to curb the influence of quantitative traders and prevent large-scale equity sell-offs at pivotal moments.
🛡️ Boosting the National Team
This tactical restriction aims to bolster the efforts of China's "national team"—a cadre of state-supported brokerages tasked with market stabilization.
By limiting significant selling activities during these windows, the team can more effectively shore up stock prices without the downward drag of massive sales.
📢 Regulatory Clarification
Bloomberg broke this story citing unnamed sources, but the report eventually compelled the China Securities Regulatory Commission (CSRC) to weigh in.
The CSRC emphasized its commitment to non-intervention in standard market transactions, ensuring investors' rights to trade remain intact. Further, it pledged to enhance regulatory measures against market manipulation and insider trading, without directly confirming or denying the reported ban.
🎢 What it Means for the Market
The CSRC's statement underscores a delicate balance between market freedom and the need to curb speculative trading behaviors that could destabilize the stock market.
So, is the decision going to put an end to the dozens of pump & dumps we see in Chinese stocks every week? Doubtful, BIG doubtful, but it’s a step in the right direction for the Asian superpower.
Featured Earnings 💰️
Pioneer Natural Resources [PXD] ... AM
Keurig Dr Pepper [KDP] ... AM
Cheniere Energy [LNG] ... AM
Intuit [INTU] ... PM
Booking Holdings [BKNG] ... PM
Mercadolibre [MELI] ... PM
Eog Resources [EOG] ... PM
Nu Holdings [NU] ... PM
Copart [CPRT] ... PM
Block [SQ] ... PM
Economy 🏗
Initial jobless claims [Feb] ... 8:30a
S&P flash U.S. services PMI [Feb] ... 9:45a
S&P flash U.S. manufacturing PMI Feb] ... 9:45a
Existing home sales [Jan] ... 10:00a
Running Hot 🔥
Gainers
Agile Thrpe [AGRX] >> +71.3%
Eastside Distilling [EAST] >> +34.2%
Root [ROOTx] >> +28.6%
Decliners
Brookdale Senior Living [BKDT] >> (62.3%)
Wetouch Technology [WETH] >> (56.0%)
Draganfly [DPRO] >> (39.7%)
NVIDIA [NVDA] - Last Close: $674.72
High-tech chipmaker Nvidia is surging after publishing blowout Q4 earnings figures in Wednesday’s aftermarket.
Nvidia reported revenue of $22.1 billion, exceeding its previously-issued guidance of $20 million, and topped the Street’s expectations.
Earnings came in at $4.93 per share and also beat the consensus $4.20 per share consensus by a wide margin.
Nvidia’s current-quarter revenue guidance also outpaced estimates, and CEO Jensen Huang said AI is hitting “the tipping point.”
NVDA is leading the S&P 500 with a 12.7% gain on roughly 4 million shares traded.
My Take: NVDA looks to be unstoppable at this point, and it’s such a huge stock that its gains are lifting the entire market. This stock is still a buy, but it’s starting to get very expensive.
Venus Concepts [VERO] - Last Close: $1.22
This morning, the Canadien MedTech company announced it has received the CE Mark for its Venus Versa Pro system.
CE status allows Venus to market the Versa Pro system in the European Union, following up an American product launch on Nov. 1st, 2023.
VERO is a top mover with a 60.9% gain on nearly 9 million shares traded.
My Take: VERO could see an injection of revenue growth this quarter as a result of its entrance to the lucrative European market.
Monopar Therapeutics [MNPR] - Last Close: $0.57
This tiny biotech firm just unveiled promising preclinical and therapeutic efficiency data for its MNPR-101 radiopharmaceutical program.
In summary, an in-house team managed to significant increase tumor uptake of MNPR-101-Zr while minimizing its uptake in healthy tissue.
The company said the breakthrough bodes well for the upcoming Phase 1 trial of MNPR-101 for radiopharma use in advanced cancers.
MNPR is up 41.5% on nearly 16 million shares traded.
My Take: MNPR could get a big boost if MNPR-101 performs well at its upcoming trial, but be patient because it could take quite some time for the storyline to play out.
Buzzfeed [BZFD] - Last Close: $0.2186
The left-wing media site is surging after landing a deal to sell Complex Networks to live streaming platform NTWRK for $108.6 million in cash.
Buzzfeed acquired Complex Networks in 2021 for $300 million, so the deal represents a significant defeat for the struggling media company.
The company also announced plans for a 16% workforce deduction as part of a planned strategy restructuring.
BZFD is leading the premarket with a 98.0% gain on nearly 24 million shares traded.
My Take: BZFD is dying a slow death. This deal may have provided a brief respite for shareholders, but it’s still a big “L” for the company.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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