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- All eyes on Nov. CPI data 💲
All eyes on Nov. CPI data 💲
Premarket Report
Chris Dinello
December 12, 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 📈
The stock market extended its winning streak with more gains on Monday. However, the advances were modest, and no major index notched a gain larger than 0.4%.
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Index futures are on the rise in early trading. S&P 500 contracts are currently up by 0.1%.
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Premarket Highlights 🔎
💸 All Eyes on Inflation: November CPI Preview
The Labor Department's release of the November consumer-price index (CPI) data is highly anticipated, with economists and market watchers eagerly awaiting these figures at 8:30 a.m. ET today.
This report on inflation will be closely scrutinized, especially with the Fed's monetary policy decision looming tomorrow.
🔍 Expected Numbers:
Overall CPI: Predicted to be flat from October, indicating a potential pause in the inflation uptick.
Core CPI: Excluding the more unpredictable food and energy sectors, core CPI is expected to show a 0.3% increase from October.
Year-Over-Year Change: Compared to last November, CPI is projected to have risen by 3.1%, while core CPI is seen to be up by 4%.
🏦 Fed's Upcoming Move:
These inflation metrics come at a critical time, just before the Federal Reserve's next monetary policy announcement.
The CPI and tomorrow's producer-price index data will likely play a key role in shaping the Fed's decision-making process.
As investors and policymakers alike parse through these numbers, the CPI report serves as a crucial indicator of the economy's temperature, particularly in the context of ongoing discussions around inflation and interest rate strategies.
What to Watch Today 👀
Inflation Data
November’s Consumer Price Index report is far and away the most notable item on today’s schedule. Investors are hoping to see continuing declines in inflation, which would raise the chances of a potential Federal Reserve rate cut next year.
However, the market’s hope for a rate cut could be dashed if inflation proves to be more stubborn than expected. This will be the one of the last major inflation reports for the year, so keep a close eye on the results!
Featured Earnings 💲
Johnson Controls International plc [JCI] ... AM
System1 [SST] ... PM
Mama's Creations [MAMA] ... PM
Frequency Electronics [FEIM] ... PM
Champions Oncology [CSBR] ... PM
EMCORE Corporation [EMKR] ... PM
Economy 🏗
Consumer price index [Nov] ... 8:30a
Core CPI [Nov] ... 8:30a
Monthly U.S. federal budget [Nov] ... 2:00p
Running Hot 🔥
Gainers
Protogenic Therapeutics [PTIX] >> +25.9%
Cyclacel [CYCC] >> +19.7%
Virax Biolabs [VRAX] >> +16.9%
Decliners
CareCloud Preferred [CCLDP] >> (37.0%)
Harbor Custom [HCDI] >> (30.8%)
Cheche Group [CCG] >> (24.0%)
Icosavax [ICVX] - Last Close: $10.49
The tiny biotech has agreed to be acquired by British Big Pharma firm AstraZeneca [AZN] via tender offer that includes cash and CVRs.
Icosavax owners will receive $15 per share under the terms of the deal, plus a non-tradable contingent value right for a $5 cash regulatory milestone payment.
The deal will build on AstraZeneca’s RSV therapeutics portfolio by strengthening its late-stage pipeline with Icosavax’s lead vaccine candidate, IVX-A12.
The deal is expected to close in the first quarter of 2024, pending a successful tender offer and customary closing conditions.
ICVX is one of this morning’s top movers with a 46.2% gain on 626K shares traded.
My Take: ICVX is already trading for higher than the proposed acquisition price, so I don’t think there’s a lot of upside left on the table here.
C4 Therapeutics [CCCC] - Last Close: $1.18
A newly announced research collaboration with Pharma Giant Merck [MRK] is rallying shares of this micro-cap biotech.
C4 Thereapeutics announced the license and research collaboration to discover and develop Degrader-Antibody Conjugates (DACs) this morning.
Under the terms of the deal, C4 will receive $10 million cash upfront, plus $600 million in potential milestone payments.
Merck also has the option to expand the agreement, which could make C4 eligible for another $2.5 billion in milestone payments.
CCCC is up 58.4% on the news, with over 16 million shares traded in the premarket.
My Take: This is a promising collaboration for CCCC. The stock has struggled as of late, but this headline could provide the catalyst it needs to pivot.
IN8bio [INAB] - Last Close: $1.28
After Monday’s close, the tiny biotech shared noteworthy new clinical data from a Phase 1 trail of INB-100 in Leukemia patients.
INB-100 demonstrated a continued durable complete remission in 100% of evaluable patients in the ongoing clinical trial.
All trial participants are alive and have been relapse free as of the last assessment, and six have been relapse free for over a year.
IN8bio is hosting a call at 8:30 a.m. ET to discuss the press release in more detail, so expect to see some volatility around that time.
INAB is one of this morning’s most active stocks. Shares are up 28.9% on more than 4.7 million shares traded.
My Take: INAB has been running hot the past couple of days, but we’ll see how much farther this news can carry it. I expect a pullback at some point, but shares might find new support at the $1 mark.
Bruush Oral Care [BRSH] - Last Close: $0.1629
A Schedule 13D regulatory filing dated Dec. 11th disclosed Yaletown Bros. Ventures has built a 23.1% ownership position in the company.
The Smart Money investment could be a promising sign for the struggling stock, and the company is also making progress on its compliance issue with Nasdaq.
According to a Form 6-K filing also dated yesterday, the company believes it has regained compliance with Nasdaq’s minimum shareholder equity rule.
Whatever the reason, investors are buying in force this morning. BRSH is up 17.6% and more than 23 million shares have passed hands in the premarket.
My Take: BRSH has been pretty erratic as of late, so I recommend you take a defensive posture if you want to chase this one down.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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