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Stocks BOOM as Fed Rally Rolls On 📈
Premarket Report
Chris Dinello
December 14, 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 notched broad gains on Wednesday, following dovish comments from Federal Reserve Chairman Jerome Powell at his post-meeting press conference.
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The rally is on pace to continue at the open. Dow and S&P 500 contracts are both up 0.3% in early trading.
Sponsored
A tiny MedTech stock is making waves with a cutting-edge technology that could revolutionize the way we treat certain diseases.
The system utilizes patented technology and next-generation materials to deliver first-of-its kind diagnostic applications for doctors & patients.
Early estimates project the company could be standing on the threshold of a $100 billion world market opportunity.
Despite the potential upside, this stock is still trading at a great price, and there’s still time to get in before a rally develops.
Premarket Highlights 🔎
🌎 Global Bond Surge After Fed's Rate Cut Signal
In the aftermath of the Federal Reserve's latest meeting, global bond prices have seen a notable surge.
This movement has pushed the yield on the 10-year U.S. Treasury note below the key 4% mark.
💰 Jerome Powell's Pivot:
Federal Reserve Chair Jerome Powell's recent indication that the central bank is leaning towards interest rate cuts as inflation recedes marks a significant change in stance.
Only two weeks prior, Powell had cautioned that it was premature to consider rate reductions.
📈 Market Rally Triggered:
This shift, combined with the Fed's projections of further rate cuts next year, has ignited a rally on Wall Street, sparking a ripple effect worldwide.
Investors are now speculating that other central banks might echo the Fed's move towards policy easing.
📊 Yield Fluctuations:
The U.S. 10-year Treasury yield, a benchmark for global borrowing costs, recently hovered around 3.97%.
Although it dipped below 4% on Wednesday, it closed just above that threshold.
It's important to remember that bond yields and prices have an inverse relationship.
As global markets digest the Fed's latest signals, the bond market's response underscores the pivotal role of U.S. monetary policy in setting the tone for global financial conditions.
What to Watch Today 👀
Retail Sales
November’s retail sales report will drop today, and it will give investors our first peak at how much this year’s Black Friday sales revved up retail demand. This report could also help the market set its expectations for the Christmas and holiday sales season. Any signs of consumer weakness could be a troubling sign for any retailers that are hoping for a “green” Christmas. 💵
Featured Earnings 💲
Jabil [JBL] ... AM
Moolec Science SA [MLEC] ... AM
Live Ventures [LIVE] ... AM
Costco Wholesale [COST] ... PM
Lennar [LEN] ...PM
Scholastic [SCHL] ... PM
Quanex Building Products [NX] ... PM
Mesa Air [MESA] ... PM
NeuroOne Medical Technologies [NMTC] ... PM
Good Times Restaurants [GTIM] ... PM
Economy 🏗
Initial jobless claims [Dec.9] ... 8:30a
Import price index [Nov] ... 8:30a
Import price index minus fuel [Nov] ... 8:30a
U.S. retail sales [Nov] ... 8:30a
Retail sales minus autos [Nov] ... 8:30a
Business inventories [Nov] ... 10:00a
Running Hot 🔥
Gainers
SRIVARU [SVMH] >> +32.5%
Harnyu Holdings [HRYU] >> +25.6%
Canterbury Park [CPHC] >> +24.2%
Decliners
Amtech Systems [ASYS] >> (30.2%)
NextCure [NXTC] >> (30.3%)
Cepton [CPTN] >> (25.4%)
Moderna [MRNA] - Last Close: $78.60
A collaboration between the mRNA-famous biotech and Carisma Therapeutics [CARM] has nominated its first in vivo CAR-M lead candidate.
According to an early-morning press release, the first candidate will target a solid tumor antigen with “significant unmet medical need.”
The development represents a significant biochemical breakthrough, which the companies recently presented at an industry conference called SITC 2023.
MRNA is leading the S&P 500 with a 11.2% gain on 703K shares traded.
My Take: MRNA is still down huge from its pandemic highs, so the upside potential is there if it can recapture the market’s interest, but don’t expect to see $450 per share again anytime soon.
XBP Europe [XBP] - Last Close: $5.67
The tiny stock is rebounding after a steep sell off that began last week, when it made its public market debut following a SPAC merger with CF Acquisition.
Shares of XBP were down 71.3% over the past five days as of Wednesday’s closing bell, but the declines may have been overdone.
XBP is rebounding dramatically in today’s premarket. It’s up 131.7% with over 1.5 million shares traded in the premarket.
My Take: XBP’s recent selloff appears to be a bit harsh. I think we could see this stock recover more of its losses before the rebound is all said and done.
Freight Technologies [FRGT] - Last Close: $0.2795
Early this morning, the logistics company announced Amazon Mexico has renewed its contract for its Fr8App logistical solutions software.
Financial terms of the deal weren’t included in the press release, but CEO Javier Selgas called it an “exciting opportunity.”
The company believes the deal also positions them as a leading player in the cross-border shipping marketplace for the USMC region.
FRGT is today’s top premarket mover, with a 159.9% gain and 27.2 million shares traded at the time of writing.
My Take: The FRGT rally seems tad over aggressive, especially considering we don’t even know the financial terms of the deal. Be careful here because we could see a pullback in the not-so-distant future.
NXU [NXU] - Last Close: $0.0195
Late Wednesday, the EV charging company announced a new letter of intent outlining a strategic investment in Lynx Motors.
Under the terms of the partnership, NXU will assist Lynch in leveraging its technologies to quickly scale development of its EV products.
NXU said the deal will also help it execute Nasdaq’s compliance plan, which was designed to raise shareholder equity back to acceptable levels.
NXU is a top mover with a 57.0% gain, and its premarket trading volume is currently sitting above 118 million.
My Take: NXU has an absurdly small float, and its short percentage stood at 5.0% as of November 30th, so I expect to see a lot of volatility in this stock for the remainder of the trading week.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
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