Stocks Surge on Strong Quarterly Earnings

Several strong earnings reports are driving sharp gains for today's premarket movers.

Author

Chris Dinello
February 08, 2024

Good Morning! 

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

Let's get ready to trade!

Markets 📈

The market continued to edge higher on Wednesday, except for the Russ2K, which posted a small loss on the session.

  • S&P 500 [+0.8%]

  • Dow [+0.4%]

  • Nasdaq [+0.9%]

  • Russell 2K [-0.1%]

Futures are in the red in early trading. S&P 500 contracts are down by just 0.1% in early trading.

What to Watch Today:
Corporate earnings season is in full swing, and we’ll hear from S&P Global, Phillip Morris, and ConocoPhillips today, to name a few. Today’s weekly jobless claims report could also give investors insights into the state of the labor market.

Few people believed award-winning futurist Eric Fry a year ago, when he said tech was the place to be.

Fry even recommended some of the stocks that went on to become the "magnificent Seven" market leaders.

Now, he's recommending seven new stocks for 2024 that he predicts will be the year's top performers.

Premarket Highlights 🔎

🐉 Chinese Stocks End the Year of the Rabbit with a Bang!

As the Lunar New Year ushers in the Year of the Dragon, Chinese stocks are looking to shed the past year's malaise and leap into a new era. The week leading up to the long holiday break saw markets rallying, with investors keen on a fresh start.

📈 CSI 300
The CSI 300, which tracks the top caps in Shanghai and Shenzhen, saw a notable uptick, closing Thursday up by 0.6%. This week alone, it has soared by 5.8%, signaling a robust appetite for risk among investors and hinting at brighter days ahead.

🏙️ Shanghai Shines, Hong Kong Hesitates
The Shanghai Composite Index wasn't far behind, marking a 1.3% rise on Thursday and wrapping up the week with a 5% gain. However, Hong Kong's Hang Seng Index took a slight detour, dipping by 1.3% on Thursday, though it still managed a 2.2% rise over the week.

🔄 Beijing's Boosts
The rally is a response to Beijing's concerted efforts to reverse a three-year slump that saw the CSI 300 drop by 11% in 2023. From tightening trading restrictions to strategic purchases by state-linked firms and a reshuffle at the securities regulator, Beijing is pulling all the stops to restore investor confidence.

🔮 Will the Dragon Roar in 2024?
Last year's post-Lunar New Year slump looms as a cautionary tale. With the mainland markets on pause until Feb. 19 and Hong Kong's brief trading session tomorrow, all eyes will be on how stocks perform once the Dragon year is in full swing.

Will Beijing's interventions turn the tide, or is the market in for another year of challenges? Only time will tell, but for now, investors are riding the wave of optimism.

Featured Earnings 💰️ 

  • S&P Global [SPGI] ... AM

  • Philip Morris International [PM] ... AM

  • ConocoPhillips [COP] ... AM

  • Duke Energy [DUK] ... AM

  • Intercontinental Exchange [ICE] ... AM

  • Brookfield [BN] ... AM

  • TransDigm Group [TDG] ... AM

  • Apollo Global Management [APO] ... AM

  • Motorola Solutions [MSI] ... PM

  • Dexcom [DXCM] ... PM

Economy 🏗

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

  • Wholesale inventories [Dec] ... 10:00a

  • Richmond Fed President Tom Barkin speaks ... 12:05p

Running Hot 🔥

Gainers

  • Aviat Network [AVNW] >> +21.7%

  • GRIID Infrastructure [GRDI] >> +16.5%

  • Renovao Biosciences [RENB] >> +16.4%

Decliners

  • Snap [SNAP] >> (30.6%)

  • ADDvantage [AEY] >> (28.8%)

  • Triumph Grp. [TGI] >> (17.8%)

Disney [DIS] - Last Close: $99.14

The media giant is taking off after publishing an upbeat fiscal Q1 report after Wednesday’s closing bell.

Disney’s EPS of $1.22 per share beat the $0.99 consensus, but its revenues missed analysts expectations by a thin margin.

The company also said it’s on pace to meet its cost-cutting goals, reported strong streaming growth, and announced an investment in EPIC Games.

DIS is leading the S&P 500 with a 7.8% gain on nearly 1 million shares traded.

My Take: DIS has been quietly building steam over the past few weeks, and it was locked in a positive trend before this news hit. I expect it will find new price support at $100 after today’s rally.

Arm Holdings ADR [ARM] - Last Close: $77.01

A blowout quarterly report is powering this large-cap British chipmaker to the top of the leader board this morning.

ARM reported better-than-expected EPS, and crushed the Street’s revenue estimate by roughly 8%.

The company also announced fiscal Q4 and 2024 guidance exceeded the consensus by an enormous margin.

ARM is up 27.4% on more than 2 million shares traded.

My Take: Wow, blowout report from ARM. If chip stocks keep reporting strong results like this, the entire sector could get a boost.

Confluent Class [CFLT] - Last Close: $24.29

Data streaming firm Confluent reported stronger-than-expected Q4 earnings after Wednesday’s closing bell, and shares are rallying.

Confluent generated Q4 EPS of $0.09 per share, nearly doubling the Street’s $0.05 EPS estimate. Its top-line revenues also exceeded expectations.

Confluent’s Q1 and full-year 2024 revenue guidance also topped the consensus forecast.

CFLT is a top performer with a 23.9% gain, but volume is somewhat light at only 125K shares traded as of the time of writing.

My Take: CFLT suffered a massive sell-off in early November, but it appears to be on the comeback trail. This could be a swing trade setup worth watching.

MicroCloud Holographics [HOLO] - Last Close: $18.00

MicroCloud is on our list for the second day in a row, after it announced its attention to join the Communications Industry Association yesterday.

However, the driving force behind the stock’s two-day rally is more likely to be its extremely elevated short rate, which measured at 83.18% as of Jan. 15th.

Shares rallied by a whopping 1,092% on Tuesday, and it’s still pushing higher in this morning’s premarket.

HOLO is up 59.5% on nearly 2 million shares traded.

My Take: HOLO has been on an absolute tear, but I have no doubt we’ll see a reversal here at some point. Be very cautious with this one, especially this late in the game.

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

Best Regards,

— Chris D.
Elite Trade Club

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