Good Morning, Traders!…👋

U.S. stock futures are pointing lower as markets brace for upcoming U.S. economic data – including producer price indices and retail sales – and earnings reports from major companies like Walmart (NYSE:WMT) and Alibaba (NYSE:BABA). Oil prices have also declined following comments from President Trump regarding a potential Iran nuclear deal.

Analysts at Vital Knowledge highlight ongoing economic activity, tariff-driven inflation concerns, and U.S. budget bill uncertainty as factors influencing market sentiment and pushing Treasury yields higher.

Despite these headwinds, trading remains relatively calm compared to recent trade-related volatility. Earlier gains this week followed the announcement of a U.S.-China trade agreement, raising hopes for easing tensions.

The market's focus today will be on the release of producer price and retail sales data from the U.S. Census Bureau.

Earnings Watch

Earnings hit today from Walmart $WMT, Alibaba $BABA, and Deere $DE before open, plus Applied Materials $AMAT, CAVA $CAVA, and Take-Two $TTWO after close.

Analysts expect Walmart to post $0.57 EPS with retail strength, Alibaba to hit $1.27 EPS on e-commerce growth, Deere at $5.68 EPS, AMAT to deliver $2.29 EPS with chip demand, CAVA at $0.05 EPS, and TTWO at $0.06 EPS—could these beats spark rallies?

Happening Today

✓ 08:30 AM ET – Initial Jobless Claims

✓ 08:30 AM ET – Core Retail Sales (MoM) (Apr)

✓ 08:30 AM ET – Philadelphia Fed Manufacturing Index (May)

✓ 08:30 AM ET – PPI (MoM) (Apr)

✓ 08:30 AM ET – Retail Sales (MoM) (Apr)

✓ 08:40 AM ET – Fed Chair Powell Speaks

✓ 09:15 AM ET – Industrial Production (MoM) (Apr)

✓ 10:00 AM ET – Business Inventories (MoM) (Mar)

✓ 10:00 AM ET – Retail Inventories Ex Auto (Mar)

✓ 02:05 PM ET – Fed Vice Chair for Supervision Barr Speaks

✓ 04:30 PM ET – Fed's Balance Sheet

PREMARKET SNAPSHOT 📈

U.S. equity futures edged lower this morning as investors exercised caution ahead of the upcoming Consumer Price Index (CPI) report, which could influence the Federal Reserve's interest rate decisions.

SECTOR SNAPSHOT✨

Sector performance was broadly negative, with healthcare continuing to slide sharply and weakness spreading across industrials, materials, real estate, and energy. Consumer staples and financials also edged lower. On the upside, gains in technology and communication services helped cushion the broader market, while consumer discretionary posted modest strength.

PreMarket Unusual Volume Stocks

📈 Incannex Healthcare Inc. $IXHL is surging 22.94% in early trading, with volume soaring to 20.21M — up more than 114,000% from its average. This sharp move suggests traders are piling in on speculative momentum or potential developments around its clinical pipeline.

📈 Aytu BioPharma, Inc. $AYTU has jumped 34.07% pre-market, with 4.82M shares traded — a 46,800% spike in volume. The stock appears to be riding a wave of renewed interest, possibly in anticipation of trial data or regulatory updates.

📈 Graphjet Technology $GTI is up 129.18% with a pre-market volume of 93.46M — up nearly 6,672%. This explosive activity points to speculative buying, likely fueled by hype around its graphite innovation and EV material exposure.

📈 Carbon Revolution Public Limited Company $CREV is up 17.11%, trading 398.6K shares — a 647% volume increase. The move may be tied to investor optimism around its carbon wheel technology and OEM partnerships.

📈 Basel Medical Group Ltd $BMGL is gaining 21.05% with 289.6K shares exchanged, reflecting a 480% rise in volume. The early action suggests traders are watching for updates in the healthcare delivery or diagnostics space.

Premarket Picks

Foot Locker, Inc. (FL) soared 83.14% pre-market to $23.57 following news of a takeover deal.

Aytu BioPharma, Inc. (AYTU) surged 35.48% pre-market to $1.83 after reporting 32% year-over-year revenue growth for Fiscal Q3 2025.

Carbon Revolution PLC (CREV) jumped 13.22% pre-market to $3.34 after reporting record revenue for the recently closed quarter.

KULR Technology Group, Inc. (KULR) rose 4.35% pre-market to $1.68 ahead of its earnings release scheduled after market close today.

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

Top Upgrades:

1. Petrobras Brasileiro (PBR)

Analyst Firm: Jefferies
Analyst: Alejandro Demichelis
Rating Change: Hold → Buy
Price Target: Raised from $11 to $15
Last Close: $11.53
Implied Upside: 29.23%

Jefferies upgraded Petrobras to Buy and lifted the price target to $15, reflecting improving fundamentals and the company's commitment to disciplined capital allocation. Analyst sentiment remains strong, with a consensus 12-month price target of $16.60—suggesting a potential upside of over 36% from recent levels. The stock is increasingly viewed as a compelling opportunity in emerging-market energy plays.

2. Perion Network Ltd. (PERI)

Analyst Firm: Roth MKM
Analyst: Jeff Martin
Rating Change: Neutral → Buy
Price Target: Raised from $9 to $14
Last Close: $11.39
Implied Upside: 22.91%

Roth MKM upgraded Perion Network to Buy, noting the company’s strategic pivot to performance-based advertising and enhanced profitability. With an updated price target of $14, the upgrade highlights confidence in the company's growth trajectory. The average Wall Street target is $13.50, indicating further room for appreciation amid a recovery in digital ad spending.

3. KKR & Co. Inc. (KKR)

Analyst Firm: Morgan Stanley
Analyst: Michael Cyprys
Rating Change: Equal-Weight → Overweight
Price Target: Raised from $120 to $150
Last Close: $129.00
Implied Upside: 18.29%

Morgan Stanley upgraded KKR to Overweight, citing strong performance in alternative asset management and continued growth in private equity and credit platforms. The firm boosted its price target to $150, reinforcing a positive outlook. With an average analyst target of $141.67, KKR remains a favored name in the alternative investment space.

Happy investing,

Maeve Grace
Editor In Chief
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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.