Good Morning, Traders!…👋

U.S. stocks are poised for modest gains on Tuesday, with premarket action pointing upward. All eyes are now on the Federal Reserve's September meeting, which begins today and wraps up tomorrow. Investors are almost certain that policymakers will vote to cut interest rates for the first time since the early pandemic days, but the key question is whether it will be a quarter- or half-point cut.

Recent developments have increased the likelihood of a more aggressive move, with the CME FedWatch tool indicating a 69% chance of a 50-basis-point rate cut as of Tuesday. The August U.S. retail sales report, due out today, could be the final piece of data that influences the Fed's decision. Economists expect a 0.2% decline compared to last year. If the report shows a steeper decline, it could further sway the odds toward a larger rate cut.

In the commodities market, oil prices have softened as traders weigh the potential impact of Hurricane Francine on U.S. output. Brent crude fell 0.3% to $72.51 a barrel, while West Texas Intermediate edged down 0.1% to $69.99. Bond yields have also dipped slightly in the past 24 hours, with the 10-year U.S. Treasury note yielding 3.613% and the 2-year note at 3.559%.

Happening Today

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

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

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

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

✓ 12:00 PM ET – Atlanta Fed GDPNow (Q3)

✓ 01:00 PM ET – 20-Year Bond Auction

✓ 04:30 PM ET – API Weekly Crude Oil Stock

PREMARKET SNAPSHOT📈

Market futures are showing gains, with the S&P 500 up 0.29%, the Dow rising 0.22%, and the NASDAQ leading with a 0.47% increase.

SECTOR SNAPSHOT✨

Today's market showcased a mixed performance across sectors. Consumer Discretionary faced a decline, reflecting some weakness in consumer sentiment. In contrast, Consumer Staples managed a modest gain, indicating resilience. The Energy sector saw a significant uptick, while Financials and Health Care both posted solid increases, contributing to the overall positive tone. Industrials and Materials also experienced gains, reinforcing optimism in the market. Real Estate had a slight rise, while Information Technology struggled with a notable drop. Communication Services and Utilities rounded out the day with positive movements, highlighting selective strength amidst broader fluctuations.

PreMarket Unusual Volume Stocks

📈 Smith Micro Software, Inc. (SMSI): Smith Micro Software, Inc. experienced a remarkable surge in trading activity with a volume of 15,451,106, vastly exceeding its average volume of 262,870. This significant increase resulted in an 85.22% price change, highlighting strong market interest.

📈 SES AI Corporation (SES): SES AI Corporation saw a notable rise in volume, trading 4,226,513 shares compared to its average of 570,640. This substantial increase led to a 42.16% price change, indicating heightened investor activity.

📈 Galmed Pharmaceuticals Ltd (GLMD): Galmed Pharmaceuticals Ltd's trading volume soared to 3,262,850, significantly higher than its average of 75,570. This surge in trading volume resulted in a 51.16% price change.

📈 Allarity Therapeutics Inc (ALLR): Allarity Therapeutics Inc saw its volume rise to 2,227,626, surpassing its average of 229,940. This increase in trading activity corresponded with a 19.53% price change.

📈 Mynaric AG ADR (MYNA): Mynaric AG ADR's volume reached 1,150,464, well above its average of 86,930. Despite this increase, the stock experienced a modest 2.53% price change.

Premarket Picks

SES AI Corporation (SES) saw its shares jump 40.20% in premarket trading, reaching $1.23, following the announcement of a major new project aimed at speeding up material discovery for electric transportation.

Galmed Pharmaceuticals Ltd. (GLMD) saw its stock price rise 60.18% in pre-market trading, reaching $6.20, following the filing of its 6-K form with the SEC.

Allarity Therapeutics, Inc. (ALLR) experienced a 22.48% increase in pre-market trading, with shares climbing to $3.14 after revealing that two patients in its Phase 2 clinical trial of stenoparib for advanced, recurrent ovarian cancer have been on treatment for over a year.

ANI Pharmaceuticals, Inc. (ANIP) saw a notable pre-market increase of 16.53%, with its stock price reaching $65.49, after completing its acquisition of Alimera Sciences.

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

Top Upgrades:

1. Texas Capital Bancshares, Inc. (TCBI)

Analyst Firm: Raymond James
Upgrade: Market Perform to Outperform
Price Target: $78
Yesterday’s Close: $71.17

Raymond James has upgraded Texas Capital Bancshares, Inc. from Market Perform to Outperform, setting a new price target of $78.

Texas Capital Bancshares is the parent company of Texas Capital Bank, a full-service financial institution catering to businesses, entrepreneurs, and individual clients.

Analyst price targets for TCBI range from a low of $47.00 to a high of $77.00, with a median of $70.00 and an average target of $69.14.

2. Veritex Holdings Inc (VBTX)

Analyst Firm: Raymond James
Upgrade: Market Perform to Strong Buy
Price Target: $30
Yesterday’s Close: $24.91

Raymond James has upgraded Veritex Holdings Inc. from Market Perform to Strong Buy, setting a price target of $30.

Veritex Holdings oversees Veritex Community Bank, offering a wide range of commercial banking products and services to small and medium-sized businesses and professionals.

Analyst price targets for Veritex Holdings range from a low of $26.00 to a high of $29.00, with a median target of $27.00 and an average of $27.20.

3. Hewlett Packard Enterprise Company (HPE)

Analyst Firm: BofA
Upgrade: Neutral to Buy
Price Target: $24
Yesterday’s Close: $17.23

BofA analyst Wamsi Mohan has upgraded Hewlett Packard Enterprise Company from Neutral to Buy, assigning a price target of $24.

Hewlett Packard Enterprise provides innovative solutions to help customers efficiently capture, analyze, and act upon data across various global regions.

The stock price target for HPE ranges from a low of $18.00 to a high of $23.00, with a median target of $21.00 and an average of $20.83.

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.