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- Futures dip ahead of Powell speeches 📉
Futures dip ahead of Powell speeches 📉
Premarket Report
Chris Dinello
December 01, 2023
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Happy Friday! It’s December 1st. I hope you have a great weekend.
Now, let's get ready to trade!
Markets 📈
The Dow rallied for 1.4% in a mixed day for U.S. stocks. The S&P 500 edged higher by 0.3%, but the Nasdaq slid to a 0.2% loss. The small-cap Russell 2K added 0.2%.
Index futures are hovering close to even in the premarket. S&P 500 contracts are currently down by 0.1%.
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Premarket Highlights 🔎
💵 Fed Brass Sounds off On Rates
Ahead of Jerome Powell's Georgia gig at 11 a.m. ET, Federal Reserve officials have been stirring the policy pot with varied perspectives on the future of rate-setting.
📊 Opinions from Fed's Top Brass:
Tom Barkin's Cautious Stance: The Richmond Fed President sees inflation cooling but warns of businesses planning more price hikes. His takeaway? High rates might need to stick around longer.
Christopher Waller's Optimism: Waller's Tuesday talk hinted at a sunnier outlook, with recent data bolstering his belief that current policies could rein in inflation to the desired 2%. His words sparked chatter about potential rate cuts next year.
Michelle Bowman's Words of Caution: Striking a more reserved tone, Bowman stressed the historical risks of jumping the gun on declaring an inflation victory. She hinted at the need for further policy tightening.
John Williams and Market Movements: The New York Fed President's remarks about a prolonged period of restrictive policy nudged bond yields up briefly on Thursday.
🔄 Voting Voices:
Waller, Bowman, and Williams hold spots on the rate-setting Federal Open Market Committee (FOMC), influencing the Fed's monetary moves. Barkin, though currently without a vote, will join the voting squad in 2024.
As the Fed gears up for its Dec. 12-13 meeting, these mixed signals from top officials paint a picture of a central bank grappling with a delicate balance: reining in inflation without derailing economic growth.
What to Watch Today 👀
Powell Speech
It’s a quiet day for earnings, so Jerome Powell’s speeches at 11am ET & 2pm ET could be the most consequential events on today’s calendar. Investors are horrified at the idea of another rate hike, so they’ll be hoping the Fed Chairman strikes a dovish tone at the event. If his comments lean hawkish, we could see a negative reaction in the late afternoon.
Featured Earnings 💲
Genesco [GCOD] ... AM
Economy 🏗
S&P Global manufacturing PMI [Nov] ... 9:45a
ISM manufacturing [Nov] ... 10a
Construction spending [Oct] ... 10a
Fed Chair Powell speaks … 11a
Fed Chair Powell and Fed Gov. Cook speak in Atlanta ... 2p
Running Hot 🔥
Gainers
Harbor Custom [HCDI] >> +38.3%
Altimmune [ALT] >> +55.4%
ShitPixy [PIXY] >> +23.7%
Decliners
Polar Power [POLA] >> (52.7%)
Smart for Life [SMFL] >> (36.5%)
Worthington Industrial [WOR] >> (34.9%)
Ulta Beauty [ULTA] - Last Close: $425.99
Ulta Beauty is up after a strong earnings report.
The beauty retailer released stronger-than-expected Q3 earnings in Thursday’s after-market, and raised its full-year profit and sales forecasts.
Ulta also announced that CFO Scott Settersten will retire in April of next year, and he’ll be succeeded by Paula Oyibo.
In light of the strong quarter, Ulta raised its annual profit forecast to $25.20 - $25.60 per share and net sales expectations to $11.10 billion - $11.15 billion.
Quarterly net sales increased 6.4% to $2.49 billion, exceeding analysts' expectations.
Excluding items, Ulta earned $5.07 per share, surpassing the expected $4.95.
ULTA is leading the S&P 500 with an 11.3% gain.
My Take: Even with today’s rally, ULTA is still well off it’s 52-week highs. This stock could prove to be an excellent value at its current price point, IF Ulta can keep up the momentum.
Neximmune [NEXI] - Last Close: $2.48
Neximmune is making a breakout move in today’s premarket.
There is no obvious news to explain the move, but the stock is skyrocketing on high trading volume in today’s premarket.
Earlier this month, the board of directors unanimously approved a plan to wind up and liquidate the company.
Online chatter claims this move is targeted price manipulation of the low-float stock, which could be followed by a registered offering that the company hopes will get it out of insolvency.
It’s all just speculation, but this move was worth mentioning due to its scale. NEXI is up 344.5% with millions of shares traded in today’s premarket.
My Take: It’s safe to say there is something fishy going on here. NEXI’s board approved liquidation on Nov. 2nd, so it’s not clear why this stock would soar unless it was targeted by buyers for its low float.
HUB Cyber Security [HUBC] - Last Close: $0.2330
News of an expanded partnership is rallying HUB Cyber.
This morning, the company partnered with Blackswan Tech, a U.S. enterprise AI vendor, to develop confidential computing for the financial sector.
Hub expects to earn more than $25 million from the deal within 18 months under the 3-year deal, which also has a 24-month extension option.
HUB CSO Noah Hershcovitz said of the deal, ”This is an initial step towards an expansion on both clientele and new geographies for HUB's business."
HUBC is up 43.4% with over 11 million shares traded in today’s premarket.
My Take: Shares of HUBC were in the basement prior to this announcement, with shares down 64.7% over the past month. However, this could mark the beginning of a pivot for the stock. I think it’s worth watching.
Green Giant [GGE] - Last Close: $0.1832
Green Giant is getting a boost after a regulatory disclosure.
Early Thursday, the Chinese real estate developer filed an S-8 registration statement announcing the issuance of 8.36 million commons shares.
However, the market didn’t react well to this news. Shares of GGE plummeted 88.6% yesterday following the announcement.
But, the downward move appears to have been overdone because shares are reversing course in today’s premarket.
GGE is one of this morning’s top performers with an 85.9% gain on over 54 million shares traded.
My Take: GGE’s Thursday sell off may have been a tad overdone, but that doesn’t mean you should jump into this one. I don’t think it’s suitable as a long-term holdings.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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