Good Morning, Traders!…👋

U.S. stock futures retreated early Wednesday as trade tensions between the Trump administration and China escalated, while investors processed a wave of corporate earnings reports.

On Tuesday, President Trump imposed a 10% tariff on Chinese imports, prompting swift retaliation from Chinese leader Xi Jinping, who announced tariffs on 80 U.S. products. Trump later downplayed China's response, stating he was in no rush to engage in negotiations, signaling that a resolution to the trade war may not be imminent.

Alphabet (GOOG, GOOGL) is already feeling the impact of rising trade tensions. Ahead of its Q4 earnings report, China announced an antitrust investigation into Google, a move widely seen as Beijing’s countermeasure against Trump’s latest tariffs.

Looking ahead, all eyes are on Disney (DIS), which is set to report earnings on Wednesday. Investors will closely watch the company’s theme parks and Disney+ streaming performance, both of which are expected to face headwinds.

Happening Today

✓ 08:15 AM ET – ADP Nonfarm Employment Change (Jan)

✓ 08:30 AM ET – Trade Balance (Dec)

✓ 09:45 AM ET – S&P Global Services PMI (Jan)

✓ 10:00 AM ET – ISM Non-Manufacturing PMI and Prices (Jan)

✓ 10:30 AM ET – Crude Oil Inventories

✓ 03:00 PM ET – FOMC Member Bowman Speaks

PREMARKET SNAPSHOT 📈

As of February 5, 2025, U.S. stock index futures are experiencing declines, with the S&P 500 down 0.46%, the Dow Jones Industrial Average down 0.10%, and the Nasdaq Composite down 0.86%. These movements are influenced by disappointing earnings reports from major technology companies. Alphabet, the parent company of Google, reported a deceleration in cloud revenue growth, leading to a 7.5% drop in premarket trading. Similarly, Advanced Micro Devices (AMD) saw an 8.2% decline after forecasting a decrease in data center sales. Additionally, Apple shares fell 2.5% following reports of a potential antitrust investigation by China's regulator.

SECTOR SNAPSHOT✨

Yesterday market showed resilience as Consumer Discretionary and Information Technology led gains, while Energy surged with a strong 2.18% increase. Communication Services also performed well, while Financials and Health Care struggled. Consumer Staples and Utilities lagged, reflecting investor rotation into growth sectors. Industrials and Materials posted slight gains, and Real Estate remained flat, signaling a mixed sentiment across sectors.

PreMarket Unusual Volume Stocks

📈 Oragenics Inc (OGEN) is witnessing a significant pre-market surge, with volume reaching 30.36 million shares, far exceeding its average of 1.08 million. The stock is up 90.99%, indicating strong speculative interest.

📈 Pasithea Therapeutics Corp (KTTA) has gained traction in early trading, with volume hitting 1.43 million shares against an average of 45,340. The stock is up 96.63%, signaling a sharp pre-market rally.

📈 60 Degrees Pharmaceuticals Inc (SXTP) is trading actively, with pre-market volume at 24.21 million shares, compared to its average of 1.71 million. The stock has risen 29.78%, reflecting increased investor focus.

📈 Samfine Creation Holdings Group Ltd (SFHG) is experiencing heightened activity, trading 8.81 million shares before the open, well above its average of 1.83 million. The stock has gained 37.00%, attracting attention from early traders.

📈 Cyngn Inc (CYN) is showing notable pre-market movement, with volume reaching 20.84 million shares versus its average of 9.94 million. The stock is up 18.17%, indicating steady investor engagement.

Premarket Picks

Mattel, Inc. (MAT) saw a 13.45% surge in pre-market trading, with shares reaching $20.50. This boost came after the company reported its fourth-quarter and full-year 2024 financial results, including a quarterly EPS of $0.35, which beat expectations by 73.93%.

Mercury Systems, Inc. (MRCY) experienced a 21.19% increase in pre-market price, reaching $51.01, following the release of its second-quarter fiscal 2025 results.

Aviat Networks, Inc. (AVNW) surged 14.36% in pre-market trading, with shares reaching $23.50. The company announced its fiscal 2025 second-quarter and six-month financial results, reporting a total revenue of $118.2 million, up 26.2% year-over-year.

Lumen Technologies, Inc. (LUMN) saw a pre-market surge of 10.52%, with its shares reaching $5.57. This increase came after the company reported its fourth-quarter results for the period ending December 31, 2024.

Below is a complete list of hot stocks in pre-market today:

Top Upgrades:

1. Mercury Systems, Inc. (MRCY)

Analyst Firm: Baird
Upgraded: Neutral to Outperform
Price Target: $58
Yesterday's Close: $42.09

Baird analyst Christopher Danely upgraded Mercury Systems from Neutral to Outperform, boosting the price target to $58, up from $37.

Analysts have provided a stock price target range for Mercury Systems, with estimates spanning from a low of $28.00 to a high of $58.00. The median target sits at $43.00, with the average price target reaching $44.13. Mercury Systems specializes in providing high-tech components for clients in the defense, government, and aerospace sectors across the U.S., Europe, and the Asia Pacific region.

2. Molson Coors Beverage Company (TAP)

Analyst Firm: Citi
Upgraded: Sell to Neutral
Price Target: $57
Yesterday's Close: $52.95

Citi raised its rating on Molson Coors from Sell to Neutral and increased the price target to $57, up from $47.

For Molson Coors, analysts suggest a stock price target ranging from $47.00 (low) to $75.00 (high), with a median target of $62.75 and an average of $62.68. The company is renowned for producing and selling a wide variety of beer and malt beverages under several brands, serving markets in the Americas, Europe, the Middle East, Africa, and Asia Pacific.

3. NXP Semiconductors N.V. (NXPI)

Analyst Firm: Citi
Upgraded: Sell to Neutral
Price Target: $210
Yesterday's Close: $202.40

Citi analyst Christopher Danely upgraded NXP Semiconductors to Neutral from Sell, setting a new price target of $210, up from $200.

NXP Semiconductors has a price target range from $200.00 (low) to $300.00 (high), with a median estimate of $245.00 and an average target of $249.31. The company offers a broad range of semiconductor products used across various industries.

Happy investing,

Maeve Grace
Editor In Chief
Premium Stock Alerts

Important: This newsletter does not provide investment advice. The stocks mentioned should not be taken as recommendations. Your investments are solely your decisions.

Disclosure: I hold no positions in any companies mentioned, either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.