Top Movers

"Inflation Fears Dip U.S. Futures; Calavo Soars 12%"

Pre-Market

By Barry Stearns

6/11, 07:44 EDT
Cleveland-Cliffs Inc.
Calavo Growers, Inc.
DXC Technology Company
General Motors Company
Eli Lilly and Company
Target Hospitality Corp.
Yext, Inc.
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Key Takeaway

  • U.S. equity futures are down, with S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures falling 0.3%, 0.4%, and 0.4% respectively, amid inflation concerns.
  • Notable pre-market movers include Calavo Growers (CVGW) up 12% on strong earnings and Target Hospitality (TH) down 28% due to regulatory impacts from ICE detention center closure.

Pre-market Top Moves

As of 7:31 a.m. in New York, U.S. equity futures are showing a downward trend, reflecting growing concerns over persistent inflation potentially delaying interest-rate cuts. This sentiment is weighing on the broader market indices:

  • S&P 500 futures: Down 0.3%, indicating a cautious start to the trading day.
  • Nasdaq 100 futures: Down 0.4%, suggesting pressure on technology stocks.
  • Dow Jones Industrial Average futures: Down 0.4%, mirroring the broader market sentiment.
  • MSCI World Index: Down 0.2%, reflecting a global cautious stance.

Highlights by Sector

Consumer Goods

  • Calavo Growers (CVGW): Shares are up 12% after the company reported second-quarter profit and sales that exceeded analyst estimates. This positive performance highlights strong demand and effective cost management in the produce distribution sector.

Healthcare

  • Eli Lilly & Co. (LLY): The stock is up 2% following an FDA advisory panel's recommendation for U.S. regulatory approval of its Alzheimer's drug. This development underscores the potential for significant revenue growth from new drug approvals.

Industrial

  • General Motors (GM): Shares rise 1% after the company announced a $6 billion share buyback program, signaling confidence in its financial health and commitment to returning value to shareholders.

Notable Gains and Losses

Gains

  • DXC Technology (DXC): Up 2% on news that Apollo Global and Kyndryl Holdings are in talks for a joint bid for the company, as reported by Reuters. This potential acquisition is driving investor optimism.
  • Calavo Growers (CVGW): Up 12% due to strong quarterly earnings.

Losses

  • Cleveland-Cliffs (CLF): Down 3% after JPMorgan downgraded the stock to neutral, citing concerns over free cash flow and shareholder returns.
  • Target Hospitality (TH): Plummets 28% following a Wall Street Journal report that the Biden administration is closing an ICE detention center in Dilley, Texas, impacting the company's operations.
  • Yext (YEXT): Falls 13% after the company cut its full-year revenue forecast, reflecting challenges in the digital-media technology sector.

Key Movers & Takeaway

The pre-market session is characterized by a cautious sentiment driven by inflation concerns. Notable movements include:

  • Calavo Growers (CVGW): Strong earnings performance is a positive indicator for the consumer goods sector.
  • Eli Lilly (LLY): Regulatory advancements in healthcare can drive significant stock movements.
  • Target Hospitality (TH): Regulatory and policy changes can have substantial impacts on company operations and stock performance.

Key Movers Table by Market Cap

LargeCap Movers (>$20B)

Stock Ticker Price Change Key Takeaway
Eli Lilly & Co. LLY +2% FDA panel recommends approval of Alzheimer's drug
General Motors GM +1% Announced $6 billion share buyback program

Mid-Cap Movers ($5B-$20B)

Stock Ticker Price Change Key Takeaway
DXC Technology DXC +2% Potential joint bid by Apollo Global and Kyndryl Holdings
Cleveland-Cliffs CLF -3% Downgraded by JPMorgan due to concerns over free cash flow

SmallCap Movers ($50M-$5B)

Stock Ticker Price Change Key Takeaway
Calavo Growers CVGW +12% Strong 2Q profit and sales
Target Hospitality TH -28% Impacted by closure of ICE detention center
Yext YEXT -13% Cut full-year revenue forecast

Top Overbought/Oversold by 14-Day RSI

Overbought Stocks

Stock Ticker RSI
Faraday Future Intelligent Electric FFIE 97.9
Defiance Silver DNCVF 89.2
Novavax NVAX 88.9
Bristow Group VTOL 88.6
Ardmore Shipping ASC 88.4

Oversold Stocks

Stock Ticker RSI
Seritage Growth Properties SRG 9.2
Dlocal DLO 15.0
Evolent EVH 17.3
Cerence CRNC 17.9
Papa John’s PZZA 17.9

The pre-market session is setting the stage for a cautious trading day, with inflation concerns and regulatory developments driving significant stock movements. Investors should keep an eye on these key movers and sector trends as the market opens.