Thank God for Science!

Jun 30, 2021

A very Good Morning,

92 countries heave a sigh of relief! Moderna’s Covid vaccine has shown promise against Delta, Beta and Eta variants of the Virus, in a lab setting. The news made Moderna Inc.’s stock jump more than 5%.

And what if I told you the internet will now be beamed from space? You heard that right! Elon Musk’s ambitious Starlink is all set to start beaming by August, across the world except the Polar regions.

With all the leaps, let’s be ready to make way for AI. Nvidia is collaborating with Alphabet’s Google cloud to build an AI-on-5G innovation lab aimed at accelerating development of smart cities and factories.

US Markets:

Inflation fears have been abating as evident from the falling breakeven rate, a measure for inflation expectation, after touching an 8 year high, keeping the markets buoyant.

Out of the 11 S&P sectors, only Technology (0.70%▲), Health Care (0.63%▲) and Cons. Discretionary (0.27%▲) were in the green zone.

Tech giants Apple Inc. (AAPL, 1.15%▲), Microsoft Corporation (MSFT, 1.00%▲) and Amazon Inc. (AMZN, 0.12%▲) led the S & P 500 (0.03%▲) and the Tech heavy Nasdaq (0.19%▲), to yet another record high.

Energy (-0.50%▼) continued to slump but it was the Utilities (-1.60%▼) that was hit the hardest. Financials (-0.33%▼) and Real Estate (-0.14%▼) were no better!

Futures!

As of 07:30 ET, the US Index futures were red without any exception. S&P Futures (-0.06%▼), Nasdaq Futures (-0.01%▼), Russell 2000 Futures (-0.35%▼) and Dow Futures (-0.08%▼) painted a gloomy picture of the trading day ahead.

Key Movers in Small Cap:

Unraveling mysteries of the brain to treat neuroscience diseases, Cerevel Therapeutics Holdings (CERE, 136.2%▲), announced positive results from the clinical trial of CVL-231 drug for Schizophrenia. The relative volume of the stock was 116.6.

Celcuity Inc. (CELC, -21.34%▼), a clinical-stage Biotechnology company, crashed after they announced the pricing of a secondary stock offering at $25, way below what the stock closed at on Monday. Relative volume of the stock was 8.7.

One more healthcare stock, Sensei Biotherapeutics Inc. (SNSE, -15.97▼), slid after announcing the discontinuation of its single-antigen phage SNS-301 program. Relative volume of the stock was 4.2.

Kratos Defense and Security Solutions Inc. (KTOS, 8.39%▲) successfully completed engine testing for an affordable and high-performance turbine engine for future expandable cruise missiles and attritable UAVs. Relative volume of the stock was 10.7.

Key Movers in Large Cap:

Skepticism surrounding the massive expenses and total addressable market of six-figure space tourism flights, is making investors rethink the “strong reaction” to Virgin Galactic Holdings Inc. (SPCE, -14.26%▼). The relative volume of the stock was 1.77.

With a robust rise in revenues and better than expected earnings, the Jefferies Financial Group Inc. (JEF, 7.07%▲) outperformed the sector Tuesday. The relative volume of the stock was 2.09.

Tusimple Holdings Inc. (TSP, 8.04%▲), developing self-driving technology for long haul trucks, continued its run with a 25% gain in the last two days. TSP IPO was launched on April 15 and some individual investors seem to be exploring the stock now. The relative volume of the stock was 1.51.

A steady rise in the demand for semiconductors world over has pushed one of the manufacturers’ Skyworks Solutions Inc. (SWKS, 4.52%▲) upwards. The stock is headed for a $200 breach. The relative volume of the stock was 1.49.

Earnings:

LMP Automotive Holdings Inc. (LMPX, 7.03%▲), reported earnings of -$0.05, exactly in tune with the expectations. The revenue of $33 million was also what was expected. The stock price jumped by 11.49% after hours.

Avid Bioservices Inc. (CDMO, -1.67%▼) came up with a surprise of -900% on Tuesday reporting an earning of -$0.04 %, lower than the expected $0.01, despite the revenue beating expectations of $21.5 million by more than $6 million. The stock price had a further decline of 1% after hours.

On the Lookout:

Consumer confidence is at a 16 month high. The Consumer Confidence Index (CCI), an indicator of consumers optimsm on the economy expressed through their savings and spending, has shown a 7% increase for June, way ahead of expected 1%.

Talking of optimism, the Lithiumproducers are adding to their capacity with an eye on probable growing global demand in the next decade as EV’s take centerstage! The mineral prices might soar to record highs.

While we say EV’s are the future, at the same time Nio Inc. (NIO, 1.90%▲) is steadily grabbing the attention on subreddit. 64th most discussed stock Sunday, the Chinese EV manufacturer has moved to the 12th spot in the last 24 hours.

The top five stocks being talked about over social media are SoFI Technologies Inc. (SOFI, -2.02%▼), Clover Health Investments Corporation (CLOV, 4.37%▲), ContextLogic Inc. (WISH,-6.94%▼), Clean Energy Fuels Corp. (CLNE, -4.80▼) and the undisputed king of meme stocks for now, GameStop Corporation (GME, -1.11%▼).

It’s raining IPOs. AMTD Digital, an integrated digital banking, insurance and payments company, is offering 16 million shares today at a price ranging between $6.80 and $8.20.

20 million shares of Social Capital Suvretta Holdings Corp. will also be available today at a price of $10 per share.

Didi Global Inc, a China-based ride sharing company, will start trading today after it sold 288 million shares at $14 per share, the top of its $13 to $14 range.

Unusually high shorter-term CALL options activity seen on Halliburton (HAL, -0.18%▼), Occidental Petroleum Corporation (OXY, 0.19%▲), Delta Air Lines (DAL, -0.58%▼), and Academy Sports & Outdoors (ASO, -0.049%▼) among others.

On the other hand, unusually high shorter-term PUT options activity seen on Macerich Co (MAC, -0.70%▼), BSQUARE Corporation (BSQR, 206.87%▲), United Airlines Holdings (UAL, 0.65%▼), and Intel Corporation (INTC, -1.27%▼), among others.

Other Asset Classes:

The 10 Year US Treasury Yield on Tuesday fell below 1.5% to a 3 year low (1.47%) losing 11.3 base points in June so far. The 30 Year Treasury Yield fell to 1.94% for the first time ever. The slide is reinforcing the belief that we are not going to get sustained inflation above 2%.

The US dollar Index (92.10, 0.06%▲) is shedding some gains at the end of quarter flows and ahead of the crucial ADP Jobs data, scheduled on Friday.

Crude Oil Prices, after touching 2018 high, fell for the second consecutive day Tuesday amid fears that rising delta variant cases of the Corona Virus might dampen the fuel demand recovery world over. Though some gains were made today!

Global Markets:

Most of the Asia Pacific markets rose, building on gains in the US market and a vaccine optimism, following Moderna’s claims.

The EuroZone inflation data and German unemployment figures are due today. The European Markets hovered below the sub-zero line as resurgence of Covid is also among concerns of the investors.

Meanwhile on Researchfin.ai

There are 14 new trade setups identified by the AI today. Please sign-up for our app, if you already haven’t, to learn about these setups.

That brings us to the end of the newsletter! Have a lovely day at the market!

See you tomorrow!

Warm Regards

Team Researchfin.ai