| US benchmarks closed Wednesday's session in the red. The S&P 500 fell 0.8%, and the Dow lost 0.9%. The Nasdaq and the small-cap Russell 2K both closed the session with a 0.6% decline. This morning, early morning trading action is pointing to a lower open for US stocks. S&P 500 futures are currently showing a 0.7% loss. Economists expect to see 3.5% unemployment and 318,000 new jobs created in today's August Jobs Report. The report is set for an 8:30 a.m. ET release. The Japanese Yen is at a 24-year low against the US Dollar, as the Federal Reserve's tight monetary policy continues to give the dollar an edge against foreign currencies. Lululemon Athletica [LULU] - Last Close: $294.45 Lululemon is taking off after strong quarterly numbers. The yoga pants powerhouse released its fiscal Q2 results later Thursday, and the results were better than expected. Lulu generated adjusted diluted earnings of $2.20 per share, marking significant YoY growth and easily beating the Street's $1.86 per share forecasts. Revenues of $1.87 billion also exceeded analysts' $1.77 billion expectations. Lulu also hiked its full-year sales guidance on the heels of the strong quarter. It nos expected to generate better than expected full-year EPS ranging from $9.82 to $9.97. Several analysts upgraded the stock on the news, and LULU is currently leading the Nasdaq-100 with a 9.4% gain on active volume. My Take: Good quarter from Lulu, but worsening economic conditions could bite the company in the long run. If consumer confidence continues to crumble and costs continue to rise, Lulu's $100-plus yoga pants will become a much harder sell. Hollysys Automation Technologies [HOLI] - Last Close: $16.96 Buyout rumors are lifting shares of Hollysys Automation. An early morning report from Reuters revealed Hollysys' management team is leading a consortium of investors that aims to take the US-listed company private in a $1.8 billion deal. Founder and CEO Wang Changli, is leading the push with backing from the municipal government of Beijing, and they've joined with a Beijing-based state firm for the potential deal, according to Reuters. Hollysys, Wang and the Beijing municipal government did not respond to requests for comment. HOLI is one of today's top premarket performers with a 24.8% gain on active trading volume. My Take: China stocks can be very risky, especially smaller ones like HOLI. The push to take the company private could create an opportunity for short-term traders, but the trade could quickly turn south if the bid doesn't live up to investors' expectations. BioAffinity Technologies [BIAF] - Last Close: $8.30 Shares of BioAffinity exploded after the company made its public market debut. The micro-cap biotech firm completed its IPO on the Nasdaq Capital Market on Thursday afternoon, and shares quickly skyrocketed after hitting the open market. BioAffinity priced the offering of 1.3 million shares at $6.13 apiece. Altogether, gross proceeds came to $7.9 million. BIAF gained 36.0% on trading volume of 6.3 million shares on Thursday, and the stock carried its momentum into this morning's premarket trading session. Today, shares of BIAF are up 33.3% on strong volume ahead of the opening bell. My Take: IPO's have been a hot commodity lately, but the rallies are usually followed by a sharp pullback soon after (look at SHPH today!). If you think you can time a short-term trade to perfection, more power to you, but be careful you don't get caught holding the bag when the pullback comes. Forza X1 Inc [FRZA] - Last Close: $3.72 Forza X1 is surging after putting in a new low on Thursday. The Florida-based electric boat manufacturer hit a new 52-week low on Thursday, but it's coming back strong in today's premarket. FRZA set a new 52-week low of $3.51 and closed with a 1.3% decline in Thursday's trading session despite no bearish headlines in the news.
However, today's rally may indicate that the stock is bottoming out. Shares are making a sharp move higher to help the stock break its recent funk. FRZA is one of today's top performers with a 15.1% gain on active trading volume. My Take: The bottom might be in for FRZA. The stock is coming off its new low with a big rally, so maybe investors are beginning to see value in this beaten down stock. It could be an excellent candidate for a potential swing trade. |
