Good Morning, Traders!…👋

U.S. stock futures edged lower Wednesday, signaling a potential continuation of Tuesday’s decline as markets digest mounting political and geopolitical risks.

President Trump visited Capitol Hill to rally Republican support for his sweeping budget proposal, which analysts say could add $3 trillion to $5 trillion to the current $36.2 trillion national debt. The fiscal uncertainty, combined with rising concerns over tariffs, has put pressure on investor sentiment.

Retail earnings remain in focus today, with markets watching closely for signs of how Trump’s tariff policy is affecting consumer-facing businesses.

Meanwhile, oil prices jumped on reports that Israel is preparing a potential strike on Iranian nuclear facilities, stoking fears of supply disruptions from a key Middle Eastern production hub.

Earnings Watch

Earnings roll out today from Home Depot $HD, Viking $VIK, and Bilibili $BILI before open, plus Palo Alto Networks $PANW and Toll Brothers $TOL after close.

Analysts expect Home Depot to post $3.59 EPS with stable retail demand, Viking to hit $0.12 EPS on cruise growth, Bilibili at $0.06 EPS, Palo Alto to deliver $0.77 EPS with cybersecurity strength, and Toll Brothers at $2.29 EPS.

Happening Today

✓ 10:30 AM ET – Crude Oil Inventories

✓ 12:15 PM ET – FOMC Member Bowman Speaks

✓ 01:00 PM ET – 20-Year Bond Auction

PREMARKET SNAPSHOT 📈

U.S. equity futures declined this morning as investors reacted to escalating fiscal concerns and rising Treasury yields. The downturn follows President Trump's proposed tax-cut bill, which faces resistance within the Republican Party and could potentially add up to $5 trillion to the national deficit.

SECTOR SNAPSHOT✨

Markets saw broad-based weakness yesterday, with most sectors ending in the red. Consumer discretionary, energy, and financials faced notable declines, while tech and communication services also pulled back. Industrials and materials slipped modestly. Defensive names like consumer staples, health care, and utilities managed small gains, offering some support amid the broader softness.

PreMarket Unusual Volume Stocks

📈 Edible Garden AG Incorporated $EDBL is soaring 40% pre-market with volume hitting 5.96M—an explosive jump of over 220,000% compared to its average. The sudden surge points to strong speculative interest, possibly tied to industry developments or short-covering.

📈 MetaVia Inc. $MTVA is up 16.67%, with 1.66M shares traded so far—over 3,170% higher than usual. The spike may indicate investor enthusiasm around recent updates or early-stage positioning.

📈 Petros Pharmaceuticals, Inc. $PTPI is climbing 27.82%, with 84.34M shares traded—over 518% above average volume. The stock continues to attract attention among small-cap traders looking for volatile setups.

📈 Biodesix, Inc. $BDSX is up nearly 50% pre-market on volume of 30.33M, a 507% increase. This movement suggests strong momentum buying, possibly ahead of anticipated news in the diagnostics space.

📈 Digital Ally, Inc. $DGLY is gaining 14.72% with 73.49M shares traded, marking a 139% jump in volume. The name has been on multiple watchlists lately as traders rotate into high-beta small caps.

Premarket Picks

CFSB Bancorp, Inc. (CFSB) saw a significant pre-market surge of 75.60%, trading at $13.82. The jump comes after a definitive merger agreement was announced between CFSB and Hometown Financial Group, Inc.—the holding company for bankESB, bankHometown, and North Shore Bank. Under the agreement, Hometown will acquire CFSB and its subsidiary, Colonial Federal Savings Bank. 

Petros Pharmaceuticals, Inc. (PTPI) climbed 55.40% in pre-market trading, reaching $0.19. The boost follows news of a strategic partnership with Innolitics, a top player in the Software-as-a-Medical Device (SaMD) industry, aimed at advancing Petros’ digital health initiatives. 

D-Wave Quantum Inc. (QBTS) rose 12.14% pre-market to $18.57 after announcing the general availability of its Advantage2™ quantum computing system. This next-generation annealing quantum computer is designed to solve complex problems that are currently beyond the capabilities of classical computing. 

Edible Garden AG Incorporated (EDBL) jumped 46.11%, with a pre-market price of $5.26. The rally follows the company's announcement of the launch of the initial phase of its new initiative, “Kick,” aimed at expanding its sustainable and locally grown produce offerings. 

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

Top Upgrades:

1. Bilibili Inc. (BILI) 

Analyst Firm: HSBC 
Upgraded: Hold to Buy 
Price Target: $22.50 
Yesterday's Close: $18.15 

HSBC raised its rating on Bilibili from Hold to Buy and increased its price target to $22.50 from $21.50. Bilibili Inc., a provider of online entertainment services targeting younger audiences in China, has received mixed stock price forecasts from analysts. Estimates range from a low of $18.00 to a high of $30.00, with an average target of $25.08. 

2. The Home Depot, Inc. (HD) 

Analyst Firm: Stifel 
Upgraded: Hold to Buy 
Price Target: $425 
Yesterday's Close: $377.05 

Stifel upgraded Home Depot from Hold to Buy, boosting the stock's price target to $425 from $405. Home improvement giant The Home Depot, Inc. continues to draw strong analyst support. Stock price targets range from a low of $331.00 to a high of $475.00. The average target sits at $423.90, with a median estimate of $425.00, reflecting steady confidence in its domestic and international operations. 

3. ACADIA Pharmaceuticals Inc. (ACAD) 

Analyst Firm: Deutsche Bank 
Upgraded: Hold to Buy 
Price Target: $35 
Yesterday's Close: $21.69 

Deutsche Bank lifted its rating on Acadia Pharmaceuticals to Buy from Hold and raised the price target to $35, up from $20. ACADIA Pharmaceuticals Inc., known for developing treatments for brain disorders and rare diseases, has analyst price targets ranging from $15.00 to $37.00. The average forecast stands at $26.68, with a median target of $28.00, indicating a positive outlook from the investment 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.