Good Morning, Traders!…👋

U.S. stock index futures declined on Monday as investors adjusted their expectations regarding the Federal Reserve's rate cuts this year, ahead of crucial inflation data and the upcoming third-quarter earnings season.

U.S. Treasury yields also climbed, with the yield on benchmark 10-year notes reaching its highest level since early August. This increase pressured rate-sensitive megacap growth stocks, with Nvidia, Amazon, and Apple dropping 1.5%, 2.1%, and 1.5%, respectively, in premarket trading.

In contrast, Pfizer's shares rose 2.7% after news that activist investor Starboard Value has acquired approximately a $1 billion stake in the company.

As third-quarter earnings reports begin, major banks such as JPMorgan Chase, Wells Fargo, and BlackRock are scheduled to announce results on October 11. These earnings will be a critical test for Wall Street, which has seen the S&P 500 rise about 20% year-to-date, nearing record highs. However, ongoing geopolitical tensions in the Middle East add another layer of uncertainty.

Happening Today

✓ 01:00 PM ET – FOMC Member Bowman Speaks

✓ 03:00 PM ET – Consumer Credit (Aug)

✓ 06:00 PM ET – FOMC Member Bostic Speaks

PREMARKET SNAPSHOT 📈

Market futures are down, with the S&P 500 declining by 0.47%, the Dow falling 0.40%, and the NASDAQ dropping 0.64%.

SECTOR SNAPSHOT✨

Yesterday's market showcased positive momentum, with most sectors posting gains. Consumer Discretionary led the way with a significant increase, reflecting strong consumer confidence. Financials also saw a notable rise, contributing to overall optimism. Energy and Industrials posted solid gains, further bolstering the positive sentiment. Health Care improved slightly, while Information Technology experienced a respectable uptick. Communication Services also had a strong day. However, Real Estate and Utilities faced minor declines, slightly tempering the overall market enthusiasm.

PreMarket Unusual Volume Stocks

📈 TDH Holdings Inc (PETZ) has seen a significant pre-market volume surge, trading over 5 million shares, well above its average of 100K. The stock has gained 42.02%, bringing its pre-market price to $1.93. This sharp increase in both volume and price makes PETZ a stock to watch as markets open.

📈 LogicMark Inc (LGMK) is experiencing a huge pre-market boost, with more than 50 million shares traded compared to its average volume of 5 million. The stock is up 71.68%, with a pre-market price of $0.19. This considerable rise suggests strong investor interest as the day begins.

📈 Top Wealth Group Holding Ltd. (TWG) has seen elevated pre-market activity, trading over 562K shares against its average volume of 163K. The stock has gained 4.24%, reaching a pre-market price of $1.72. Investors should monitor this stock as it heads into the trading day.

📈 Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU) has traded 690K shares pre-market, higher than its average volume of 384K. The stock is up 8.81%, with a pre-market price of $26.07. This surge in volume could indicate a positive outlook for this leveraged ETF.

📈 Inspire Veterinary Partners Inc (IVP) has seen over 9.2 million shares traded in pre-market action, well above its average volume of 5.1 million. The stock has risen 19.58%, pushing its pre-market price to $0.32. This strong early movement suggests a potentially active day ahead for IVP.

Premarket Picks

Arcadium Lithium plc (ALTM) experienced a significant gain of 29.54%, bringing its pre-market price to $3.99 after the company confirmed it had been approached by Rio Tinto about a possible acquisition.

The Duckhorn Portfolio, Inc. (NAPA) saw an impressive surge of 99.81%, pushing its pre-market price up to $10.79 following the release of its fourth-quarter and fiscal year 2024 financial results.

EON Resources Inc. (EONR) increased by 7.38%, with a pre-market price of $1.60 after announcing the successful completion of infrastructure enhancements, which boosted daily oil production to over 1,000 gross barrels per day, up from an inherited baseline of 925 BOPD.

Hims & Hers Health, Inc. (HIMS) shares rose 5.44% to $18.62 in pre-market trading, as the company is set to join the S&P SmallCap 600 before the market opens on Wednesday, October 9.

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

Top Upgrades:

1. Alibaba Group Holding Limited (BABA)

Analyst Firm: Macquarie
Upgrade: Neutral to Outperform
Price Target: $145
Yesterday's Close: $114.53

Macquarie has upgraded Alibaba Group Holding Limited from "Neutral" to "Outperform," revising the price target from $79.70 to $145. The stock price target for Alibaba ranges between a low of $85.00 and a high of $142.00, with an average target of $115.86.

Alibaba.com is a dominant business-to-business (B2B) e-commerce platform, connecting buyers and suppliers across more than 200 countries and regions.

2. Netflix, Inc. (NFLX)

Analyst Firm: Piper Sandler
Upgrade: Neutral to Overweight
Price Target: $800
Yesterday's Close: $719.70

Piper Sandler's analyst, Matt Farrell, has upgraded Netflix from "Neutral" to "Overweight," raising the price target from $650 to $800. Netflix's stock price target ranges from a low of $545.00 to a high of $900.00, with a median estimate of $727.50 and an average target of $713.08.

As a leading global entertainment service, Netflix serves 278 million paid memberships across more than 190 countries, offering a diverse portfolio of TV series, films, and games.

3. PDD Holdings Inc. (PDD)

Analyst Firm: Macquarie
Upgrade: Neutral to Outperform
Price Target: $224
Yesterday's Close: $154.27

Macquarie's Ellie Jiang upgraded PDD Holdings from "Neutral" to "Outperform," increasing the price target from $126 to $224. The stock price target for PDD Holdings ranges from a low of $139.00 to a high of $187.90, with an average target of $163.45.

PDD Holdings is a multinational commerce group that operates a broad range of businesses, enhancing its presence in the global market.

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.