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- Futures dip with ADP jobs data on deck 📉
Futures dip with ADP jobs data on deck 📉
Premarket Report
Chris Dinello
December 05, 2023
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
I hope you have a great day in the market. Now, let's get ready to trade!
Markets 📈
U.S. large-cap indexes closed Monday’s session in the red, but most ended the day above the intraday lows.
S&P 500 [-0.5%]
Dow [-0.1%]
Nasdaq [-0.8%]
Russell 2k [+1.0%]
Today, futures are edging lower in early trading, with S&P 500 contracts down about 0.3%.
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Premarket Highlights 🔎
🇨🇳 Moody’s Downgrades the Dragon
China's local government debt issues are now casting a shadow over its credit rating.
Moody's Investors Service has shifted China's credit outlook from stable to negative, signaling growing concerns about the financial strain on regional and local governments.
🚨 Support Strains:
As some local governments face financial distress, Beijing might need to step in with support. This potential bailout could put extra pressure on China's government finances, especially as the country grapples with an economic slowdown.
💳 Rating Held but Risks Loom:
While Moody's maintains China's long-term A1 rating on sovereign debt, the change in outlook highlights the escalating concerns around the country's local government debts.
🏦 Debt Dilemma:
Estimates suggest Chinese cities and provinces hold up to $11 trillion in off-balance-sheet debt. Economists are raising alarms about a significant portion of this debt being at high risk of default, posing threats to banks and investors involved with local governments.
🏛️ Government's Response:
China's central government is taking these hidden debts seriously. Last month, they emphasized the importance of tackling this issue.
The People’s Bank of China's governor, Pan Gongsheng, mentioned providing emergency funds to heavily indebted local governments. Efforts are underway to refinance some of this risky debt with new government bonds.
As Moody's adjusts its outlook on China, it underscores the growing challenges Beijing faces in managing local debt burdens without jeopardizing national financial stability.
What to Watch Today 👀
ADP Employment Report
New private sector job data for November will drop today in the form of the ADP jobs report. This crucial read on job activity will give investors new insights into the state of the U.S. economy, and it will set expectations for Friday’s Employment Report from the federal government.
Featured Earnings 💲
AutoZone [AZO] ... AM
Ferguson [FERG] ... AM
Core & Main [CNM] ... AM
Signet Jewelers Limited [SIG] ... AM
MongoDB [MDB] ... PM
Toll Brothers [TOL] ... PM
HealthEquity [HQY] ... PM
SentinelOne [S] ... PM
Asana [ASAN] ... PM
Box [BOX] ... PM
Economy 🏗
ADP employment [Nov] ... 8:15a
U.S. productivity (revision) [Q3] ... 8:30a
U.S. trade deficit [Oct] ... 8:30a
Running Hot 🔥
Gainers
Sonomar Pharma [SNOA] >> +22.7%
Barfresh Food [BRFH] >> +22.9%
Addentax [ATXG] >> +22.1%
Decliners
Replimmune [REPL] >> (44.8%)
Designer Brands [DBI] >> (26.6%)
SilverSun Tech [SSNT] >> (26.2%)
Volato Group [SOAR] - Last Close: $8.80
Volato Group is rallying in the wake of its SPAC merger.
The aviation company just made its public market debut following the completion of its business combination with Proof Acquisition SPAC.
Shares officially begin trading under the name Volato Group with the SOAR ticker today, and shares are already heating up.
SOAR is one of this morning’s top performing stocks with an 86.0% gain. However, trading volume is a little light at just 637K shares.
My Take: I’m not sure how far SOAR’s post-merger momentum will carry it, but it’s on pace to recapture lost ground from the stock’s recent pullback.
NeuroSense Therapeutics [NRSN] - Last Close: $1.49
A recent announcement is lifting shares of NeuroSense.
After yesterday’s close, the tiny biotech firm announced it will present clinical data from a crucial Phase 2b trial at 8:30 a.m. ET this morning.
NeuroSense it will release topline and secondary data, plus details on safety & tolerability in ALS patients treated with its lead drug candidate, PrimeC.
Shares of NRSN are taking off in anticipation of the clinical data release. It’s up 48.3% in the premarket with over 7.75 million shares traded.
My Take: NRSN will have to deliver a blockbuster clinical data release to keep up this momentum. We could also see a massive dump when this data drops, so have an escape plan in case the trade turns the wrong way.
Alterity Therapeutics [ATHE] - Last Close: $1.66
Alterity is on my list for the second day in a row.
The tiny biotech is running hot again after announcing early Phase 2 data on stenoparib demonstrated a clinical benefit in advanced ovarian cancer patients.
Alterity said the Phase 2 trial evaluated the efficacy of the PARP inhibitor in five female patients.
Of the five, one experienced a “complete response,” and the other four demonstrated “stable disease.”
ATHE is up 65.5% with 9.3 million shares traded on the back of the promising clinical update.
My Take: ATHE lost most of yesterday’s premarket gains by the time the session closed, but this headline has more punch than yesterday’s catalyst. The stock is also riding a three-session winning streak, and the volume increase is encouraging.
Meiwu Technology [WNW] - Last Close: $0.0720
Meiwu Tech is going bananas in today’s premarket.
The Chinese eCommerce stock has been trading erratically since it received a delisting notice from the Nasdaq exchange midway through last week.
Since then, the stock has wildly fluctuated between gains and losses over the past few days. On Monday, it fell 13.2%.
However, shares are swinging higher this morning, backed by a massive torrent of trading volume in the micro-float stock.
WNW is this morning’s top gainer, with a 113.7% gain on 31.5 million shares traded in the pre-bell trading session.
My Take: Buckle up for this one because WNW is going on a wild ride. I suspect price manipulation is at foot here, but there could it could have some potential as a day trade candidate today.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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