Fed in focus as stocks heat up 🔥

The market returned to form on Wednesday and notched modest gains for the session, with the exception of the DJIA.

Dow [-0.1%]
S&P 500 [+0.1%]
Nasdaq [+0.2%]
Russell 2K [+0.5%]

Index futures are edging higher in early premarket trading. S&P 500 contracts are up 0.3%.

Today’s earnings & economic schedules are pretty bare, but several key Federal Reserve officials will make public comments this afternoon. More dovish chatter from central bank policymakers could give the market another boost in today’s session.

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🛒 Merchants Disgruntled with Amazon Return Fraud
Amazon's world-class delivery system faces a significant challenge: return fraud. This issue, fueled by the company's customer-first approach, including its lenient return policies, increasingly burdens the independent sellers that drive much of Amazon's online sales.

Legal Scrutiny 👮
The strain between Amazon and its sellers, exacerbated by return theft, has contributed to a contentious dynamic. This tension is highlighted by the Federal Trade Commission's ongoing lawsuit, focusing in part on Amazon's treatment of its merchants. Additionally, Amazon faces growing competition for its sellers from other e-commerce platforms.

Industry-Wide Problem 📈
Return fraud is not just an Amazon issue but a broader retail problem, with approximately 13.7% of 2023's returns deemed fraudulent, translating into substantial losses. For Amazon, this problem is magnified due to its size and online shopping dominance, making it a prime target for fraudulent activities.

Theft Battle 🕵️‍♂️
Fraud on Amazon occurs through various schemes, from returning used or counterfeit items to exploiting the system with shoplifted goods. Despite Amazon's efforts to collaborate with law enforcement and implement tracking tools, sellers argue these measures are insufficient and too shopper-friendly.

Seller Control 📋
Merchants on Amazon are calling for more stringent return processes, suggesting that adding "friction" for customers by allowing sellers to verify returns before refunds could mitigate some of the fraud issues. These suggestions point to a desire for a more balanced approach between pleasing customers and protecting sellers' interests.

Tevogen Bio [TVGN] - Last Close: $2.62

Yesterday, Tevogen Bio announced the appointment of Wall Street veteran Japan Shah as head of investor relations and corporate development.

The news broke in the premarket, and TVGN fell 11% in the trading session immediately following the announcement.

However, TVGN is rebounding today. It’s a top mover with a 98.0% gain on more than 5.5 million shares traded.

My Take: TVGN is coming off a long losing streak, but this rally could indicate the declines have been overdone. It could be worth monitoring if it can continue this upswing.

Reliance Global [RELI] - Last Close: $0.37

This morning, EF Hutton analyst Tim Moore assume coverage on Reliance Global with a “buy” rating and a $7 price target.

RELI is surging in response to the analyst upgrade. It’s up 73.6% on upwards of 15 million shares traded.

My Take: RELI saw a big volume spike yesterday, so this move could be the result of a natural correction, in addition to the upgrade catalyst.

Candel Therapeutics [CADL] - Last Close: $1.68

This tiny biotech is rallying after publishing positive interim data from a Phase 2 trial of CAN-2409 in non-metastatic pancreatic cancer patients.

Candel said the drug showed notable improvements in overall survivability and was generally safe and well tolerated among patients.

CADL is up 36.3%, and more than 2.5 million shares have been traded in the premarket thus far.

My Take: This move is on pace to put CADL above a key resistance point, and it could find new support at this level if it can hold on.

Hub Cyber Security [HUBC] - Last Close: $0.719

Hub Cyber just announced its acquisition of Qpoint Technologies in a move that will advance its plans for a “secured data fabric ecosystem.”

Upon closing, Hub now owns 100% of Point, a company with expertise in software engineering, testing, cybersecurity, ICT, web, mobile, and more.

Financial details weren’t disclosed in the initial press release, but HUBC is up 28.2% on nearly 5 million shares traded in response to the news.

My Take: This rally seems to be fueled by hype. I am not confident HUBC will hold onto these gains, given its recent performance.

Gainers
HWH Intl. [HWH] >> +49.0%
Zhongchao [ZCMDA] >> +33.7%
Gold Resources [GORO] >> +12.9%
Decliners
DigiAsia Corp [FAAS] >> (47.6%)
View [VIEW] >> (17.7%)
Casa Systems [CASA] >> (19.0%)

RPM International [RPM] ... AM
Lamb Weston Holdings [LW] ... AM
The Simply Good Foods Company [SMPL] ... AM
Lindsay [LNN] ... AM
Radius Recycling [RDUS] ... AM
AngioDynamics [ANGO] ... AM
CollPlant Biotechnologies [CLGN] ... AM
Trinity Biotech [TRIB] ... AM
Kura Sushi USA [KRUS] ... PM

Initial jobless claims [Mar] ... 8:30a
U.S. trade balance [Feb] ... 8:30a