Tesla, Nike Plunge in Premarket Trade

Good morning. It's December 20th, and today, we’ll look at why Tesla, Nike, and Winnebago are all falling in premarket trade today. But there are a few bright spots, including three tiny biotech stocks that we will highlight as well.

Gold

This Under-the-Radar Gold Stock Is Ready To Move Higher

As gold rallies and experts project prices could climb beyond $5,000, a small-cap gold stock trading at just $0.21 is emerging as a standout opportunity.

Economic uncertainty is at an all-time high—massive layoffs, financial instability, and surging gold demand paint a clear picture. Backed by a major catalyst fueling record-breaking gold acquisitions, this company is poised to capitalize on the market's momentum.

For investors seeking growth in turbulent times, this could be the stock to watch.

Click here to uncover the potential behind this hidden gem.

Previous Close 📈

The U.S. stock markets closed with mixed results yesterday. While the Dow Jones Industrial Average edged up by 15.37 points (+0.04%), the S&P 500 and the Nasdaq Composite fell marginally.

Futures

Stock futures are trending downward today. Dow Futures are down by 213.00 points (-0.50%), S&P Futures have fallen 51.50 points (-0.87%), and Nasdaq Futures are also down by -1.36%. Investors seem to be concerned over a looming government shutdown as Congress faces challenges in passing a spending bill.

What to Watch

Carnival (CCL) and Winnebago Industries (WGO) will announce their quarterly earnings before the opening bell today.

At 8:30 a.m. ET, keep an eye out for the Personal Income and Personal Spending reports for November, both of which provide a look at consumer financial health. Also at 8:30 a.m. ET, the PCE Index and Core PCE Index for November will be published, offering key inflation data.

At 10:00 a.m. ET, the Consumer Sentiment (Final) for December will provide insights into how consumers are feeling about the economy as we close out the year.

Recreational Vehicles

Sluggish RV Market Hits Winnebago's Quarterly Results

Winnebago Industries (NYSE: WGO) shares are falling 5.7% in premarket trading today as the recreational vehicle (RV) manufacturer’s first-quarter results are disappointing. The company cited subdued demand and cautious ordering by dealers ahead of the typically slow winter season.

For the quarter ending November 30, Winnebago’s adjusted loss of $0.03 per share is short of Wall Street’s projection of $0.20 in earnings. Revenue is also below expectations at $625.6 million, compared to analysts’ estimates of $672 million.

CEO Michael Happe highlighted the challenging operating environment, emphasizing cautious consumer spending and restrained dealer commitments as key headwinds.

Winnebago adjusted its fiscal 2025 guidance, narrowing its expected earnings per share to $3.10-$4.40, compared to the earlier range of $3.00-$4.50. Analysts had anticipated earnings of $3.38 per share.

The RV industry continues to face headwinds from weaker demand and tighter dealer inventories, exacerbating challenges for manufacturers like Winnebago as they navigate a sluggish market. The company remains focused on aligning production and inventory levels with current market conditions while preparing for an eventual recovery in demand.

Automobiles

Tesla Faces Setbacks With Sliding Sales and Recall Announcement, Shares Fall 6%

Tesla shares are continuing their downward trend, dropping 5% in premarket trading today, as investors appear to be cashing in on gains from the stock’s post-election surge. This follows an 8% decline earlier in the week, marking Tesla’s worst single-day drop since Donald Trump’s election win. Despite the recent slump, Tesla shares remain up approximately 65% since November 5.

The initial rally stemmed from optimism surrounding CEO Elon Musk’s close ties with President-elect Trump, who appointed Musk to co-lead the newly formed Department of Government Efficiency (DOGE). The body’s creation also gave a temporary boost to Dogecoin, the cryptocurrency inspired by an internet meme.

Separately, Tesla has announced a recall of nearly 700,000 vehicles in the U.S. due to a software issue affecting tire pressure monitoring systems. While Tesla’s over-the-air updates are expected to resolve the problem without significant disruption, the recall adds to concerns as the company faces declining sales in Europe.

November data revealed a 40.9% drop in Tesla vehicle sales, far exceeding the overall 9.5% decline in battery electric vehicle sales across the region.

These developments come as Tesla continues to pursue its vision of fully autonomous vehicles, a goal that has yet to materialize despite significant investments. The recent setbacks raise questions about Tesla’s ability to maintain its momentum in an increasingly competitive EV market.

Sportswear

Nike Reports Mixed Results, Shares Plunge Amidst Challenges Highlighted By New Leadership

Nike (NKE) reported mixed fiscal second-quarter results on Thursday, marking a pivotal moment for the brand under its new CEO, Elliott Hill. The company posted revenue of $12.35 billion, exceeding analysts' expectations of $12.13 billion, though it represents a decline from last year’s $13.39 billion. Adjusted earnings per share stood at $0.78, beating the $0.63 forecast but below last year’s $1.03.

Hill, 60 days into his leadership, acknowledged the brand’s challenges, highlighting how the firm had lost its obsession with sport and its recovery might take a multi-year effort. He emphasized a return to Nike’s roots, prioritizing athletes, reinvesting in storytelling, and rebuilding its integrated marketplace across direct and wholesale channels.

Despite these plans, Nike shares are plunging nearly 8% in premarket trading today as investors remain cautious about short-term pressures.

Gross margin fell 100 basis points to 43.6%, driven by discounts and channel mix changes. Revenue from Nike Brand declined 7% year-over-year to $11.95 billion, with Nike Direct sales falling 13%, largely due to a 21% drop in digital business.

CFO Matthew Friend outlined efforts to reduce excess inventory, shift to a full-price model, and reset the marketplace. However, margins are expected to decline further in the coming quarter.

Hill’s vision aims to strengthen partnerships with retailers like JD Sports and Foot Locker while emphasizing healthier, more profitable growth.

Market Warnings

Wall Street Warns: Stocks Could Be "Dead Money" For Next 10 Years

Despite recent rallies, big banks such as JP Morgan, Goldman Sachs, GMO, and Apollo Global Manage are warning that stocks could now be dead money - for the next 10 years.

At the same time, well-connected billionaires like Warren Buffett have been selling off US stocks at an alarming rate.

Today, one of America's most trusted market experts is stepping forward to explain what's really going on behind the scenes of this bull market - and why, even if you're sitting on large gains right now, you could soon face losses of 50% or more if you do nothing.

Click here for all the details.

Humacyte, Inc. [HUMA] - Last Close: $3.46

Humacyte is rising over 56% in premarket trade today following the FDA's full approval of its bioengineered vessel, Symvess.

This breakthrough product is designed for adult patients needing vascular access, marking a milestone for bioengineered human tissue applications.

The approval validates Humacyte's innovative approach and positions it as a leader in regenerative medicine.

With commercialization plans underway, the company is poised for significant market impact, making this development a transformative moment for Humacyte.

Psyence Biomedical Ltd [PBM] - Last Close: $2.46

Psyence Biomedical is surging 60%+ in premarket trade, continuing with its strong momentum from yesterday.

This uptick follows the company's recent advancements in its Phase IIb clinical trial, which investigates the use of natural psilocybin combined with psychotherapy to treat Adjustment Disorder in patients with life-limiting cancer diagnoses.

The trial, conducted in Australia, has commenced patient screening, with the first patient expected to be randomized in January.

Additionally, Psyence Biomedical has entered into an exclusive licensing agreement with Optimi Health Corp., granting access to Optimi’s psilocybin products for research and clinical trials targeting anxiety and depression in palliative care settings.

Aptose Biosciences, Inc. [APTO] - Last Close: $0.17

Aptose Biosciences’ shares are rising over 60% before today's opening bell. This uptick is fueled by two key developments.

The Nasdaq granted Aptose an extension to regain compliance with its minimum bid price requirement, alleviating delisting concerns and boosting investor confidence.

Secondly, the company recently announced positive preclinical data for its lead compound, tuspetinib.

Published in the AACR journal, the data highlights tuspetinib's unique mechanism of action and its potential efficacy in combination with venetoclax for treating acute myeloid leukemia (AML).

Additionally, Aptose has initiated the TUSCANY Phase 1/2 study, exploring tuspetinib-based triplet therapy for newly diagnosed AML patients.

High-Growth Stock

This Gold Stock Could Be the Breakout of 2025

Amid economic instability and rising gold demand, one small-cap gold stock is standing out.

Trading at just $0.21, this company is positioned to benefit from record-breaking gold acquisitions and a market poised for a rally.

With experts forecasting gold prices surging to $5,000, this under-the-radar stock could offer exceptional growth potential for early investors.

As financial uncertainty continues to drive interest in safe-haven assets, the opportunity to capitalize on this momentum is now.

Click here to uncover the full story behind this emerging gold stock.

Everything Else

• A U.K. regulator warns that the Synopsys-Ansys deal could stifle innovation and raise prices.

• Bitcoin and other cryptocurrencies plunge amid Federal Reserve concerns and market caution.

• Novo Nordisk faces a setback as their new weight loss drug underperforms Wegovy in trials, sending their stock plummeting.

• The Coker duo face sentencing for orchestrating massive stock fraud tied to a tiny New Jersey deli.

• Eli Lilly celebrates the FDA’s decision as compounding pharmacies prepare for stricter enforcement.

• Kushner's firm preempts future fundraising with $1.5 billion from Qatar and Abu Dhabi investors.

• Marshall Wace backs ex-Citadel manager Richard Northridge with $1 billion for flagship fund.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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