Good Morning, Traders!…👋

U.S. stock futures are pointing to gains on Wednesday, buoyed by better-than-expected Netflix results and the announcement of President Donald Trump’s $100 billion artificial intelligence infrastructure package.

Netflix delivered a strong quarter, reporting the addition of nearly 19 million new subscribers and raising its revenue and margin guidance for the coming year. The news sent its shares higher, with ripple effects boosting other tech names like Nvidia and Oracle, which are poised to benefit from the new AI infrastructure initiative.

However, trade tensions resurfaced as Trump hinted at potential 10% tariffs on Chinese imports, which could take effect as soon as Feb. 1. The news weighed on Asian markets, with the Hang Seng Index in Hong Kong slipping nearly 2%.

On the earnings front, Johnson & Johnson and Procter & Gamble are set to report today. The economic calendar remains light, keeping the focus on corporate results and geopolitical developments.

Happening Today

✓ 10:00 AM ET – US Leading Index (MoM) (Dec)

✓ 01:00 PM ET – 20-Year Bond Auction

PREMARKET SNAPSHOT 📈

Market futures are higher, with the S&P 500 up 0.42%, the Dow rising 0.13%, and the NASDAQ leading with a 0.84% gain.

SECTOR SNAPSHOT✨

Yesterday markets showcased broad-based strength with notable gains across most sectors. Industrials and healthcare led the charge with significant advances, while real estate and materials also posted strong performances. Consumer discretionary and financials added to the positive momentum, while information technology and communication services saw moderate growth. Energy was the sole sector in decline, reflecting a slight pullback in an otherwise bullish session.

PreMarket Unusual Volume Stocks

📈 ImmunoPrecise Antibodies Ltd (IPA) is witnessing a sharp increase in pre-market activity with trading volume reaching over 21.51 million shares compared to an average of 625,500. This significant surge reflects growing investor interest and could indicate notable developments ahead.

📈 New Era Helium Inc (NEHC) has recorded an impressive pre-market volume of 7 million shares, substantially higher than its average volume of 302,950. The stock's substantial 90.88% price increase suggests strong market momentum and possible catalysts driving the activity.

📈 U.S. Energy Corp (USEG) has seen pre-market trading surge to over 7.17 million shares, well above its average volume of 1.88 million. The 31.13% price increase highlights growing investor enthusiasm for the stock.

📈 Asset Entities Inc (ASST) is a standout performer with pre-market volume exceeding 31.79 million shares, dwarfing its average of 8.36 million. The stock's 66.67% gain indicates heightened market focus and potential drivers attracting investor attention.

📈 Cardio Diagnostics Holdings Inc (CDIO) has recorded a pre-market volume of 11.29 million shares, significantly higher than its average of 6.75 million. The 21.15% price increase suggests growing investor confidence.

Premarket Picks

New Era Helium, Inc. (NEHC) saw a pre-market surge of 52.91%, with the stock reaching a price of $4.19. This increase follows the announcement of a 50/50 joint venture with Sharon AI, Inc., a company specializing in AI, cloud GPU infrastructure, and cloud storage.

Tempus AI, Inc. (TEM) gained 8.59% in pre-market trading, bringing its price to $51.73. The surge follows the national launch of Olivia, the company’s AI-enabled Personal Health Concierge App, designed to assist patients in managing their health.

LanzaTech Global, Inc. (LNZA) experienced a pre-market surge of 13.33%, with shares reaching $1.70. The increase comes after the company revealed plans to establish LanzaX, a business unit dedicated to its synthetic biology platform.

Anixa Biosciences, Inc. (ANIX) saw a pre-market gain of 12.46%, with shares rising to $3.16. This increase follows a letter from the company’s CEO to shareholders, outlining positive updates and future plans.

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

Top Upgrades:

1. Crinetics Pharmaceuticals Inc (CRNX)

Analyst Firm: Jefferies
Upgraded: Hold to Buy
Price Target: $55
Yesterday's Close: $38.76

Crinetics Pharmaceuticals Inc. (CRNX) received a Buy rating from Jefferies, up from Hold, with a price target of $55, indicating a 42.15% upside from yesterday's closing price of $38.76.

Crinetics Pharmaceuticals, a clinical-stage company focused on developing treatments for rare endocrine diseases and endocrine-related tumors, has a stock price target range from $55.00 to $97.00. The average target stands at $75.43, with the median estimate at $73.50.

2. Netflix Inc (NFLX)

Analyst Firm: Canaccord Genuity
Upgraded: Hold to Buy
Price Target: $1150
Yesterday's Close: $869.68

Netflix Inc (NFLX) was upgraded from Hold to Buy by Canaccord Genuity, setting a price target of $1150, which suggests a 32.26% increase from its previous close of $869.68.

Netflix, a leading provider of entertainment services including video streaming and gaming, has a stock price target with a high of $1,210.00, a low of $597.00, and an average target of $950.59. The median estimate is $960.00, reflecting analysts' outlook on the company's performance.

3. Hormel Foods Corp (HRL)

Analyst Firm: Barclays
Upgraded: Equal-Weight to Overweight
Price Target: $36
Yesterday's Close: $30.86

Hormel Foods Corp (HRL) received an upgrade from Equal-Weight to Overweight by Barclays, with a price target of $36, indicating a 16.68% potential rise from its last closing price of $30.86.

Hormel Foods, known for its branded food products and operations across retail, foodservice, and international segments, has an estimated stock price target range of $27.00 to $46.00. The average target is $33.89, with a median estimate of $33.00.

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.