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Futures Pause ahead of Jobs Report 🎢
The November jobs report will set the tone for today's trading session...
Chris Dinello
December 08, 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 📈
Stocks extended their hot streak on Thursday thanks in part to another big rally in the Nasdaq. The small-cap Russell 2K also performed well.
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S&P 500 futures are down 0.1% in early premarket trading.
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Premarket Highlights 🔎
🤖 Tech Stocks Reignite the Rally
The equities market continued its resurgence on Thursday, thanks largely to big tech stocks.
🔥 Revival of the Rally: After a pause in early December, stocks found their footing again, thanks in part to continued excitement around artificial intelligence – a key theme in this year’s market gains.
🏅 Standout Performers:
Advanced Micro Devices (AMD): Leading the S&P 500 charge, AMD surged 9.9% following news of big players like Microsoft, Meta Platforms, and Oracle integrating its new AI chips.
Alphabet's AI Buzz: Google's parent company, Alphabet, soared over 5% after announcing its latest AI system, set to become widely available next year.
Other Tech Titans: Amazon and Meta both experienced uplifts of over 1.5%. Nvidia, a major beneficiary of the AI trend, also saw its shares increase by 2.4%.
In a nutshell, the tech sector's dynamism is reigniting the market's engine, with AI advancements fueling investor enthusiasm and pushing stocks towards new heights.
What to Watch Today 👀
November Jobs Report
The last major piece of economic data to hit the market in 2023 will land at 8:30 a.m. today in the form of the November Jobs Report. Economists’ forecasts call for 190,000 new jobs, up from 150,000 in October, and a 3.9% unemployment rate, holding steady from the previous month. Keep an eye out for this one because it could have a significant impact on investor sentiment for the remainder of 2023.
Featured Earnings 💲
Johnson Outdoors [JOUT] ... AM
Economy 🏗
U.S. employment report [Nov] ... 8:30a
Consumer sentiment (preliminary) [Dec] ... 10:00a
Running Hot 🔥
Gainers
Exicure [XCUR] >> +55.3%
Intelligent Living [ILAG] >> +26.7%
FLJ Group [FLJ] >> +19.1%
Decliners
Cyngn [CYN] >> (40.7%)
Hashicorp [HCP] >> (22.4%)
Troika Media [TRKA] >> (18.1%)
Carrier Global [CARR] - Last Close: $52.89
This morning, the industrial conglomerate announced a deal to sell its security business to Honeywell [HON] for $4.95 billion in cash.
Carrier expects the deal to close in Q3 2024, pending regulatory approvals & closing conditions, and says it will use the cash to pay down its debt.
The company added that it expects to resume share repurchases once its net leverage returns to about 2x of its EBITDA.
CARR is leading the S&P 500 with a 6.0% gain on the news.
My Take: CARR has been performing well since mid-October, when it pivoted into a new positive trend, but this deal won’t be enough to breakthrough the stiff resistance its facing at $60 per share
MBIA Inc. [MBI] - Last Close: $7.38
The NY State-based insurer announced an eye-popping special cash dividend of $8 for ever share of its common stock.
MBIA said the dividend will be paid on Dec. 22nd to shareholders of record on Dec. 18th, and it will cost about $409 million.
The special dividend was passed along to shareholders after the NY Dept. of Financial Services approved a $550 million dividend to be paid to MBIA by a subsidiary, National Public Finance Guarantee Corp.
The dividend accounts for $409 million out of the $550 million MBIA received from the Natl. Public Finance dividend, and the company will retain the rest.
Shares of MBI are leading the premarket with a 69.3% gain on 808K shares traded.
My Take: MBI shareholders hit the lottery with this one, but the special dividend is already being priced into the stock, so upside could be very limited by the time the ex-dividend date roles around.
Volato Group [SOAR] - Last Close: $5.65
The private aviation company continues to exhibit volatility in the wake of its recent business combination with Proof Acquistion SPAC.
Yesterday, SOAR fell 20% after the company launched a partner benefits program to provide luxury experiences for its members.
However, the slide stopped at the close, and it’s reversing course in today’s premarket, despite no obvious catalyst.
SOAR is up 39.5% with 1.3 million shares traded in the premarket.
My Take: SOAR was down nearly 50% from its SPAC merger price as of Thursday’s close, but the stock has shown brief flashes of promise. This rally could be a sign that the stock has bottomed out.
MicroAlgo [MLGO] - Last Close: $2.05
MLGO is making a big move for the third time this week, as volatility continues to shake up the stock in the wake of a recent announcement.
Shares more than tripled on Wednesday, after MicroAlgo announced plans to launch a new post-graduate training practice base in China.
However, the gains didn’t last for long, and MLGO suffered a whopping 78.6% pullback on Thursday.
Today, the trend is reversing course in the premarket. Shares of MLGO are up 21.4% on over 8.9 million shares traded.
My Take: MLGO has made two enormous moves this week, and they both were probably a bit overdone. This modest rally looks like a correction to the massive pullback we saw yesterday.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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