US Pre-Market Open – Indices Rally on NFP expectations

US stocks shrug geopolitical tensions in Middle East, post green numbers pre-open on positive NFP data hopes.

The major U.S stock indices are up on the day as market sentiment turns positive on hopes of slack Non-Farm Payrolls. Investors and traders are looking for a NFP number that shows a healthy economy, but at the same time, not too expansive.

The NAS100 is up 0.57%, the DOW 0.20% and the SPX 0.37%. Analysts forecast an increase in non-farm jobs by 142k, a number that is just below the 150k considered as indicating an expanding economy.

The market sees a soft NFP number as giving the Fed more room to act on cutting interest rates at the next FOMC meeting in November. The CME FedWatch tool calculates a probability of 65% for an interest rate cut of a 0.25% cut and a 35% probability of a 0.50% cut.

The market clearly expects a cut, and what will drive the market further this afternoon is an adequate number from the NFP release.

Largest Gainers & Losers

Today’s largest gainer pre-market are Beneficent (BENF), up 43.7% on the back of the company announcing it completed the conversion of $126 million of preferred equity into non-redeemable shares.

ACM Research (ACMR) and Smart Sand (SND) are both up over 14-5 premarket. ACMR stock is benefitting from its profit guidance for strong projections in 2024 and increased demand in the semiconductor industry.

SND stock announced a special dividend of $0.10 pr share and repurchase program of $10 million. The program will allow the company to buy back stocks through 2026.

The largest loser today include Spirit Airlines (SAVE), down 36%, and Renovaro Biosciences (RENB), down 16%. Spirit Airlines continues to struggle with bankruptcy talks and has lost over 86% from the start of year.

RENB is a biotechnology company involved in the development of pharmaceutical and biological products. The company has long list of drugs in the pipeline, but concerns are rising for its future prospects. The stock is down over 90% from its high of 2024.