Good Morning, Traders!…👋

U.S. stock futures were little changed Thursday morning as investors awaited fresh inflation data following a wave of optimism earlier in the week. Tuesday’s softer-than-expected Consumer Price Index (CPI) report fueled hopes for a September rate cut, sending markets higher and boosting investor sentiment.

The rally continued into Wednesday, with the S&P 500 and Nasdaq both hitting consecutive record highs. While Dow and S&P futures traded flat early Thursday, Nasdaq 100 futures slipped 0.1%. Bitcoin also surged, reaching a new record high as rate-cut expectations gained traction.

Attention now turns to July’s Producer Price Index (PPI) report, set to be released Thursday. Investors are watching closely to see if wholesale inflation mirrors the CPI trend, which could further support the growing belief that the Federal Reserve will move to cut rates at its next meeting.

Earnings Watch

Earnings hit today from Alibaba $BABA, Deere $DE, JD.com $JD, and NetEase $NTES before open, plus Applied Materials $AMAT, Nu Holdings $NU, and Ross Stores $ROST after close.

Analysts expect BABA at $2.10 EPS with e-commerce focus, DE at $4.58 EPS amid ag market challenges, JD at $0.52 EPS on retail margins, NTES at $2.07 EPS with gaming strength, AMAT at $2.36 EPS on AI chip demand, NU at $0.13 EPS with digital banking growth, and ROST at $1.54 EPS on retail traffic.

Happening Today

✓ 08:30 AM ET – Jobless Claims

✓ 08:30 AM ET – Producer Price Index (PPI)

✓ 01:00 PM ET – U.S. President Trump Speaks

✓ 04:30 PM ET – Fed's Balance Sheet

SECTOR SNAPSHOT

On the last trading day, most sectors advanced, with Materials and Health Care leading the gains. Information Technology and Communication Services were among the few sectors to post declines, indicating a rotation in investor focus despite the overall positive market sentiment.

PreMarket Unusual Volume Stocks

Here's a quick rundown of today's pre-market high-volume stocks:

📈 Expion360 Inc. (XPON) is exploding +128.24% to $1.31 on monumental volume. This surge comes after the company recently reported preliminary Q2 financial results with 134% year-over-year revenue growth and improved cash efficiency.

📈 Sonoma Pharmaceuticals, Inc. (SNOA) is up +95.61% at $3.05 with massive volume. This is likely a continuation of yesterday's post-market momentum, though specific fresh news for today is not immediately apparent.

📈 Dolphin Entertainment, Inc. (DLPN) is gaining +17.09% at $1.17 with high volume, following its recent Q2 earnings report that beat revenue expectations, indicating positive financial performance.

📈 Inspire Veterinary Partners, Inc. (IVP) sees a +44.96% rise to $0.8140 with substantial volume, after announcing it has signed an exclusive, non-binding Letter of Intent to acquire a New Jersey-based animal hospital, which would add $2 million in annual revenue.

📈 Sonnet BioTherapeutics Holdings, Inc. (SONN) is up +7.59% at $3.95 with notable volume, following recent news of an expanded clinical evaluation for its cancer drug candidate, SON-1010, which may be contributing to renewed investor interest.

Premarket Picks

Shares of Sonoma Pharmaceuticals, Inc. (SNOA) surged 76.41% in pre-market trading, reaching $5.31. The jump follows the company's announcement of its new HOCl-based diaper rash product, now launching into major U.S. retailers. The move marks a significant expansion of its pediatric skincare portfolio.

Expion360 Inc. (XPON) saw a massive 127.48% pre-market rally, with shares priced at $2.98. The surge comes on the heels of strong Q2 2025 results, highlighted by a 134% increase in sales to $3.0 million. The growth is attributed to heightened demand for the company’s latest products and technologies.

DLocal Limited (DLO) stock rose 26.09% pre-market to $14.74 after reporting its Q2 2025 financials. Alongside earnings, the company announced Guillermo López Pérez as its new Chief Financial Officer, signaling a potential strategic shift in leadership and growth direction.

Dolphin Entertainment, Inc. (DLPN) gained 16.10% in pre-market trading, hitting $1.37. The positive movement follows the company’s report of record Q2 revenue of $14.1 million, reflecting a 23% year-over-year increase driven by strong performance across its divisions.

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

Top Upgrades:

1. DLocal Limited (DLO)

Analyst Firm: HSBC

Upgraded: Hold to Buy

Price Target: $15

Yesterday's Close: $11.69

HSBC has raised its rating on DLocal from Hold to Buy and increased the stock’s price target from $11.50 to $15. DLocal Limited, a global payment processing platform provider, has received varied analyst price targets. The high estimate stands at $18.00, with a median target of $12.00 and a low of $10.00. The average price target across analysts is $12.90.

2. Mid-America Apartment Communities, Inc. (MAA)

Analyst Firm: Mizuho

Upgraded: Neutral to Outperform

Price Target: $150

Yesterday's Close: $139.77

Mizuho’s analyst, Haendel St. Juste, upgraded MAA from Neutral to Outperform with a price target of $150. MAA, a real estate investment trust (REIT) in the S&P 500 specializing in apartment communities across the U.S. Southeast, Southwest, and Mid-Atlantic, shows a high stock price target of $185.00. The median is set at $160.00, with a low estimate of $142.00. The average target comes in at $162.04.

3. BP p.l.c. (BP)

Analyst Firm: Scotiabank

Upgraded: Sector Perform to Outperform

Price Target: $42

Yesterday's Close: $34.31

Scotiabank analyst Paul Cheng upgraded BP’s rating from Sector Perform to Outperform, setting a price target of $42. BP p.l.c., a leading integrated energy company offering carbon products and services, has an analyst high price target of $48.00. The median is $35.64, the low is $28.00, and the average estimate is $36.

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.