| US benchmarks sold off on Friday after Fed Chair Jerome Powell's comments at Jackson Hole, WY sparked fears among investors of further rate hikes in the months ahead. In last week's final trading session, The tech-heavy Nasdaq plummeted 3.9%, while the S&P 500 lost 3.0% and the Dow dropped 1,000 points for a 3.4% loss. The small-cap Russell 2K gave up 3.3% on the session. Today, futures are pointing to more losses at today's open. S&P 500 contracts are currently showing a 0.9% loss. Treasury bonds and stock futures suffered losses as Fed Chairman Jerome PowellĂąÂÂs Friday comments on the Fed's commitment to keep fighting inflation, even if it causes some economic pain, unsettled many investors. Pinduoduo [PDD] - Last Close: $57.57 Strong earnings results are lifting shares of Pinduoduo. The China-based eCommerce platform reported its Q2 non-GAAP earnings results this morning, and investors like what they see. Pinduoduo earned CH$7.54 per ADS and easily beat the consensus EPS estimate of CH$2.84. Revenues came in at CH$31.44 billion and beat the Street's CH$23.56billion target by a wide margin. The unexpectedly strong quarter is pushing PDD to the top of the charts in today's premarket. It's leading the Nasdaq-100 with a 15.4% gain. My Take: Pinduoduo's strong quarter could be a sign of good things to come, but the Chinese economy is experiencing some trouble at the moment. The long-term success of this stock will depend on the health of the Chinese consumer. Bed Bath & Beyond [BBBY] - Last Close: $10.70 Bed Bath & Beyond is continuing its hot streak in today's session. The home goods retailer is up again after gaining 5.9% on Friday, as meme stock traders push to take advantage of the stock's 39.5% short ratio. BBBY rallied last week after it announced it had secured a financing deal that could help it stave off bankruptcy. Since then, a battle between the bulls and the shorts is developing in this stock, and the bulls are in control heading into today's trading session. BBBY is one of today's most active stocks, and it's up 5.4% in the premarket. My Take: BBBY is a meme stock through and through. There are plenty of risks to be had here, so take caution if you decided to dally in this one. However, stocks with social media followings have seen dramatic gains in the past, so there's a chance it could shake out in your favor if you can wait it out the volatility. American Virtual Cloud Technologies [AVCT] - Last Close: $0.1360 American Virtual Cloud Technologies is still carrying its momentum from Friday. Last week, the cloud communications firm announced a shake up to its board and the launch of a review to explore the potential sale of the business or selected assets. AVCT broke out on the news in the premarket, but it gave up its gains by the time the session closed. The stock ended the day with a 11.8% loss. However, investors are coming back to AVCT in today's premarket. The stock is trading actively, and it's rallying to recapture some of its Friday gains. AVCT is trading actively with an 18.4% gain ahead of today's opening bell. My Take: This could be a buyout play, but nothing has been confirmed yet. However, it could be a great opportunity to "buy the rumor" and get into position early, so you can maximize your gains in the event of a deal. Hill International [HIL] - Last Close: $2.80 Hill International is moving higher on news of a sweetened buyout bid. Global Infrastructure Solutions announced on Saturday that it would increase its acquisition bid for the construction management company to $3.40 per share from the $2.85 per share bid announced on Aug. 16rh. The companies said other terms of the all-cash deal will remain the same, and there's no financing contingency. However, the transaction will now be subject to the approval of Hill Intl.'s shareholders. If all goes according to plan, the sale should close in Q4. HIL is one of today's top premarket performers with a 20.7% gain on the news. My Take: Shareholders lucked out with a significant bump on the acquisition price for HIL, but it's hard to imagine there being much upside left in this trade. The stock is currently trading for just two cents below the buy-out bid. It's just about over for this rally. |
