Good Morning, Traders!…👋

Good afternoon. Following a strong start to the week, stock futures are trading near flat as investors digest the temporary easing of US-China trade tensions. The S&P 500 has moved into positive territory for the year, with analysts viewing the tariff pause as a positive step towards market stability.

Today's session will focus on commentary from San Francisco Fed President Mary Daly at 5:40 PM EDT (21:40 GMT). Markets will scrutinize her remarks for insights on inflation, monetary policy, and potential interest rate adjustments, which could influence trading sentiment.

Semiconductor and chip stocks continue to show strength, supported by the improved trade outlook and robust global demand. Investors are also tracking upcoming earnings from Cisco and Dynatrace, along with key IPO activity, to assess the sustainability of the current market rally. Potential volatility could arise following Daly's speech, particularly if it offers any signals of a policy shift. Maintaining key technical levels will be crucial for the ongoing uptrend.

Earnings Watch

Earnings hit today from Arcos Dorados $ARCO, Bitfarms $BITF, and Cellebrite $CLBT before open, plus Cisco $CSCO and NextEra $NEE after close.

Analysts expect Arcos to post $0.13 EPS with LatAm growth, Bitfarms to hit -$0.03 EPS with crypto strength, Cellebrite at $0.09 EPS, Cisco to deliver $0.92 EPS on AI demand, and NextEra at $0.84 EPS.

Happening Today

✓ 07:00 AM ET – OPEC Monthly Report

✓ 10:30 AM ET – Crude Oil Inventories

✓ 05:40 PM ET – FOMC Member Daly Speaks

PREMARKET SNAPSHOT 📈

U.S. equity futures are steady this morning following a tech-driven rally and softer inflation data, as investors await further signals on trade and monetary policy.

SECTOR SNAPSHOT✨

Markets saw mixed sector performance yesterday. Gains in information technology, consumer discretionary, and energy helped lift sentiment, while industrials and financials also edged higher. On the downside, healthcare led losses with a sharp decline, followed by weakness in real estate, consumer staples, and materials. Utilities ended nearly flat.

PreMarket Unusual Volume Stocks

📈 iCoreConnect Inc. $ICCT is up 8.73% with 112.4K shares traded pre-market — a sharp 13,916% volume surge. The sudden interest may be linked to renewed investor focus or potential updates from the company.

📈 Innovative Eyewear, Inc. $LUCY is climbing 53.03% in early action, with volume at 5.44M — up 7,570% from average. This outsized activity signals heightened speculation, possibly tied to product developments or strategic news.

📈 Super Micro Computer, Inc. $SMCI is gaining 8.90% pre-market with 1.86M shares traded — an 88% jump in volume. Investors appear to be positioning ahead of broader AI or hardware-related catalysts.

📈 Absci Corporation $ABSI has advanced 9.80%, moving 147.9K shares, a 57.5% increase in activity. Traders may be reacting to biotech momentum or anticipation around AI-driven drug discovery themes.

📈 Energous Corporation $WATT is up 8.77% with 15.25M shares traded, showing an 11.77% volume spike. The wireless power stock is catching early volume attention, possibly as part of a low-float rotation.

Premarket Picks

Red Cat Holdings (RCAT) gained 15.83% pre-market to $7.39 as it expanded maritime domain capabilities with battle-tested unmanned surface vessels. 

Absci Corporation (ABSI) rose 9.80% pre-market to $3.25 following a business update, financial results, and clinical trial progress.

Energous Corporation (WATT) jumped 11.82% pre-market to $0.3263 after reporting a 430% year-on-year revenue increase in Q1 2025.

Super Micro Computer (SMCI) surged 8.77% pre-market to $42.30 after unveiling a new MicroCloud.

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

Top Upgrades:

1. Sea Limited (SEA)

Analyst Firm: J.P. Morgan
Analyst: Ranjan Sharma
Rating Change: Neutral → Overweight
Price Target: Raised from $135 to $190
Last Close: $55.87
Implied Upside: 21.82%

J.P. Morgan upgraded Sea Limited to Overweight, sharply increasing its price target to $190. The firm pointed to improved operational efficiency and renewed growth across Sea’s digital financial services and e-commerce segments. Despite a recent decline, the average analyst price target remains significantly higher at $154.60, underscoring optimism for a recovery in the stock.

2. Payoneer Global Inc. (PAYO)

Analyst Firm: Wolfe Research
Analyst: Darrin Peller
Rating Change: Market Perform → Outperform
Price Target: Increased from $7 to $8
Last Close: $7.46
Implied Upside: 20.91%

Wolfe Research upgraded Payoneer to Outperform, citing strong fundamentals, improving margins, and a favorable outlook in cross-border digital payments. With an average price target of $11.08 among analysts, the stock is widely viewed as undervalued with significant upside potential, especially as global freelancing and SMB e-commerce trends accelerate.

3. Valero Energy (VLO)

Analyst Firm: Goldman Sachs
Analyst: Neil Mehta
Rating Change: Neutral → Buy
Price Target: Increased from $127 to $154
Last Close: $135.30
Implied Upside: 13.82%

Goldman Sachs raised Valero Energy to Buy as refining margins improve and capital allocation remains disciplined. The new price target of $154 reflects a bullish stance on the energy sector's resilience amid tightening global supply. The stock's average price target sits at $141.94, indicating continued support from the broader analyst community.

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.