Premarket Report - Nov. 22nd, 2023

Author

Chris Dinello
November 22, 2023

Good Afternoon! 

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

Today is Wednesday, November 22nd. I hope you have a great trading session.

Apologies for the late start. We encountered some technical difficulties this morning.

📢 The market will be closed tomorrow for Thanksgiving, but I’ll be back for the half-day session on Friday.

Now, let's get ready to trade!

Markets 📈

U.S. indexes stumbled on Tuesday, with the Nasdaq’s notching a 0.5% loss. The S&P 500 lost 0.2%, and the Dow edged lower by 0.1%. But, the day’s big loser was the small-cap Russell 2K, which sold-off for a 1.3% decline.

Index futures pointing to a potential rebound at today’s open. S&P 500 contracts are currently up 0.2%.

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Premarket Highlights 🔎

🚀 Nvidia's Stellar Earnings Propel Stock Rise

Nvidia [NVDA], a titan in the AI chip-making arena, is riding high on its latest earnings report.

The numbers? Impressive enough to give its shares a premarket boost.

  • Revenue Rundown: Nvidia raked in a cool $18.1 billion in quarterly revenue, cruising past both its own guidance and Wall Street's 12% lower expectations.

  • Net Income Nailed It: At $9.24 billion, the net income soared about 26% beyond what the analysts had on their radar.

  • GAAP Earnings Glory: Earnings per share hit $3.71, marking a 22% leap over consensus predictions.

🔮 Bright Future Forecast: Looking ahead, Nvidia's aiming for around $20 billion in revenue this quarter, outshining Wall Street's more modest $18 billion forecast.

📉 Stock Movement: After a bit of a morning dip, shares picked up around 1% in premarket trading, reflecting investor optimism.

🌟 AI-Driven Surge: Nvidia's stock has been on a meteoric rise, more than tripling this year thanks to AI excitement. This surge has even led to a record close on Monday.

📊 Big Tech, Big Impact: As one of the "Magnificent Seven" in tech, Nvidia isn't just winning personally; it's a major player in driving the S&P 500's gains this year.

In a nutshell, Nvidia's latest earnings report isn't just good news—it's a market mover, underscoring the company's pivotal role in the tech landscape and the broader market sentiment.

What to Watch Today 🔍

Happy Thanksgiving

Market’s will be closed tomorrow for the Thanksgiving holiday, and many institutional traders have already phoned it in. I wouldn’t be surprised if we saw thing trading volume in today’s session. Fortunately, it looks like futures are aiming higher, but things can get quirky when volume is low. Today might be a good day to be cautious with your short-term trades.

Featured Earnings 💲

  • Deere & Company [DE] ...AM

  • EHang Holdings Limited [EH] ... AM

  • Gaotu Techedu [GOTU] ... AM

  • ATRenew [RERE] ... AM

  • Jiayin Group [JFIN] ...AM

  • Sunlands Technology Group [STG] ... AM

  • LexinFintech Holdings [LX] ...PM

  • X Financial [XYF] ... PM

Economy 🏗

  • Initial jobless claims [Nov] ... 8:30a

  • Durable-goods orders [Oct] ... 8:30a

  • Durable goods minus transportation [Oct] ... 8:30a

  • Consumer sentiment (final) [Nov] ...10:00a

Running Hot 🔥

Gainers

  • Wheeler REIT [WHLR] >> +29.6%

  • Evolve Transition [SNMP] >> +22.8%

  • Brenmiller Energy [BNRG] >> +17.7%

Decliners

  • CF Acquisition [CFFE] >> (55.4%)

  • Mountain Crest Acquisition [MCAF] >> (18.7%)

  • Alterity Therapeutics [ATHE] >> (19.8%)

SciSpark [SPRC] - Last Close: $6.37

SciSpark is taking off after announcing a merger deal.

The tiny biotech firm signed a non-binding letter of intent to merge with an unnamed partner in a deal with a very complicated structure.

SciSpark plans form a new wholly-owned subsidiary and execute a reverse merger with target company.

Upon closing, the target company would be the surviving entity.

The Target Company is a leading vehicle importer in Israel. Its revenues for the first half of 2023 amounted to over $52 million1.

The deal is subject to shareholder approval, customary closing conditions, and the approval of certain Israeli court.

SPRC is one of this morning’s most active stocks, and it’s up 24.1% on the merger news.

My Take: I don’t know about this deal. It’s absurdly complicated, and why is a biotech merging with a vehicle importer? I’m staying away from this one.

Heart Test Laboratories [HSCS] - Last Close: $0.1961

Heart Test Labs is on a hot streak, and shares are up again today.

This tiny stock is gaining after publishing a Form 8-K updating the market on its ongoing compliance dispute with Nasdaq.

Nasdaq first notified Heart Test that it was out of compliance with its minimum shareholde equity rule in Dec. of 2022.

A lengthy process of appeals and extensions dragged the case out for months. Finally, the final deadline came down to Nov. 21st.

The deadline has obviously passed, but Heart Test said it believes it has satisfied Nasdaq’s rule in its recent filing.

HSCS is up 29.9% on elevated trading volume in the wake of the announcement.

My Take: HSCS said it BELIEVES it has satisfied the rule, but it’s ultimately up to Nasdaq. When the exchange announces its final ruling on the dispute, it could provide another catalyst for this tiny stock.

PaxMedica [PXMD] - Last Close: $0.80

PaxMedica is rebounding after a pullback on Tuesday.

Yesterday, the tiny biotech began to slide after registering for an offering of 2.23 million shares of common stock at $1.75 per share.

The expected gross proceed from the offering comes to just shy of $7 million.

PXMD fell 18.3% on Tuesday after disclosing Form EFFECT and Form 424B4 filings early in the morning.

However, the move is reversing course today, and PXMD is rapidly recapturing its lost ground.

PXMD is one of this morning’s top movers with a 14.8% gain on elevated trading volume.

My Take: PXMD could find some support at the $0.80 mark, but I think it will have a hard time breaking through $1. Plus, this stock is still in a downtrend so prepare for a quick exit if you decide to jump in.

AgileThought [AGIL] - Last Close: $0.083

AgileThought is skyrocketing after a business update.

After Monday’s close, the company announced it had been delisted from the Nasdaq as a result of its Chapter 11 bankruptcy filing.

AgileThought notched a 4.0% gain on Tuesday, despite the seemingly negative announcement of the delisting in their Form 8-K filing.

As of now, AGIL is leading the premarket with a 76.9% gain, and it’s exhibiting a huge spike in premarket trading volume.

My Take: AGIL might be a wild ride, but volatility can translate to opportunity if you play your cards right. Day traders might want to keep an eye on this one because it seems like this is today’s big-volume penny stock trade.

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

Best Regards,

— Chris D.
Elite Trade Club

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