Retail sentiment, however, remains cautious, with SPY and QQQ flashing bearish on Stocktwits.
- Traders await the September Core PCE report, the Fed’s preferred inflation gauge. Market odds still overwhelmingly point to a rate cut next week.
- Retail sentiment, however, remains cautious, with SPY and QQQ flashing bearish on Stocktwits.
- Retail chatter is driving sharp moves in names like SMX, SoFi, Rubrik, and Praxis.
U.S. stock futures are trading modestly higher in early trade on Friday, suggesting a positive start for Wall Street. It follows a mixed session yesterday and is primarily driven by stronger anticipation of a Federal Reserve rate cut at the upcoming December FOMC meeting.
Among crucial economic data to monitor, the September Core PCE Price Index data releases today, which is considered the Fed's preferred inflation gauge. According to the CME FedWatch tool, the market is now pricing in an 87% chance of an interest rate cut next Wednesday, down from 90% a day earlier.
As of 2:45 a.m. ET on Thursday, the Nasdaq 100 futures and S&P 500 futures were up 0.4% and 0.2%, while the Dow futures and the Russell 2000 futures were flattish with a positive bias.
On Stocktwits, however, retail sentiment toward the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, and that toward the Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index, remained ‘bearish’ early Thursday.
Stocks On Trending Watchlist
Netflix (NFLX) is reportedly winning the bidding war for a major WBD deal, outbidding Paramount (PSKY). Keep an eye on Warner Bros.Discovery (WBD) stock as well.
Security Matters (SMX) is the top-trending stock on Stocktwits as retail chatter rises over a potential short squeeze. Retail sentiment is trending in ‘extremely high’ territory. In other news, the company approved key proposals and re-elected directors at its annual general meeting in Dublin.
SoFi Technologies (SOFI) slipped over 6% in after-hours trading after an equity offering. It is looking to raise $1.5 billion in a share sale as it diversifies beyond lending into other products.
Apple (AAPL) remains on retail radar on news of executive transitions focused on AI and ongoing regulatory reviews of its App Store rules in Europe.
Rubrik (RBRK) saw a significant after-hours pop after a surprise profit and stronger guidance tied to AI demand.
Samsara (IOT) has gained retail traction post a strong Q3 earnings print. Wells Fargo raised the firm's price target to $52 from $50 and keeps an Overweight rating on the shares, while JPMorgan raised the firm's price target to $48 from $46 and keeps a Neutral rating.
Candel Therapeutics (CADL) is on retail radar on Friday. The company is scheduled to hold an R&D event at 11:00 am ET to detail the BLA roadmap for prostate cancer drug CAN-2409.
Praxis Precision Medicines (PRAX) is also inching higher on Stocktwit’s trending list after positive results from the EMBOLD relutrigine study. The company also confirmed it has an upcoming meeting with the FDA to discuss the results and the path forward for a New Drug Application (NDA).
Other stocks to keep on the watchlist post their earnings release in after-hours are Domo (DOMO), HP Enterprise (HPE), SentinelOne (S), and DocuSign (DOCU).
Key Catalysts To Watch Out For
On the economic front, investors will be watching for data on inflation and consumer health ahead of the Federal Reserve's final policy meeting of the year.
- September Core PCE Price Index (10:00 am ET)
- September Personal Income/Spending Data (10:00 am ET)
- December Michigan Consumer Sentiment (10:00 am ET)
- Consumer Credit Change (3:00 pm ET)
And on the earnings front, investors will be watching for Victoria’s Secret ($VSCO) pre-market, among others.
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