It’s Monday and we are already starting this week off with a bang as we inch closer to this morning’s opening bell. U.S. Stock futures are holding their weight near record high levels after a near “perfect” week last week signifying bullish strength as we sift through FOMC comments and other explosive news planned over the next few days. 

But as the market's optimistic view of this tech field rally continues to rip higher this week…

And investors from near and far continue licking their chops to get a piece of this buying frenzy…

There’s still quite a bit of intel to digest in order to help us navigate the market's waters this week. 

Which is why in today’s issue we’ll be uncovering…. The Key Indicator that points to a continued bullish rally…

Nvidia’s uncanny coincidences…

And of course, this morning's explosive pre-market winners to keep an eye on throughout the day. 

As always, we have a TON to go over so without further ado…

Let’s get to it! 

The Key Indicator that Points to a Continued Bullish Rally 

As we continue to navigate through 2024, and this upcoming trading week, the latest inflation data is emerging as a crucial catalyst for the ongoing stock market rally. As we come off this Fathers Day weekend, the impact of recent reports are now suggesting that the bullish momentum may continue well into the upcoming weeks.

And we here at Stocks.News aren’t the only ones thinking that…

For instance, Julian Emanuel, who leads Evercore ISI's equity, derivatives, and quantitative strategy, emphasized in a client note recently that falling inflation is a primary driver behind the bull market. 

Reflecting this optimism, Emanuel has significantly upped his year-end price target for the S&P 500 from 4,750 to an ambitious 6,000, largely due to the favorable inflation trends and the early stages of the AI trade.

Obviously the markets have already shown a positive response as both the S&P 500 and Nasdaq achieved four consecutive record highs last week, buoyed by lower-than-expected inflation figures for both consumer and wholesale prices. 

Which is why UBS Investment Bank's Jonathan Golub, has just come forward with one of the highest year-end targets for the S&P 500 at 5,600, stating that he believes this week's forthcoming inflation data could further enhance the outlook.

Golub’s confidence stems from significant strides towards the Federal Reserve's 2% inflation target. Lower inflation fuels expectations for interest rate cuts, which in turn, have been reducing Treasury yields—a major headwind for stocks over the past year.

Recent data also supports this optimistic view as the May Consumer Price Index (CPI) showed core CPI, excluding volatile food and energy prices, rising by just 0.2% month-over-month—the smallest increase since June 2023. Similarly, the core Producer Price Index (PPI) remained unchanged in May, falling short of economists' expectations.

These metrics collectively point to a favorable reading of the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) index. Economists, including Bank of America's Stephen Juneau, argue that recent data significantly diminishes the likelihood of further rate hikes and suggests a disinflationary trend is likely. BofA forecasts a modest 0.16% month-over-month increase in May’s core PCE.

The positive inflation data has even influenced market expectations regarding Fed policy. Despite the Fed's median forecast indicating only one rate cut in 2024, markets are now pricing in the possibility of two cuts. This shift is largely attributed to the timing of the inflation data releases, which came just before the Fed's latest economic projections.

David Kelly, chief global strategist at JPMorgan Asset Management, noted that recent inflation readings bolster the case for a gradual move towards the Fed’s 2% target. Barring any unexpected economic shocks, the outlook for a soft landing appears intact.

In summary of all the “fundamental” mambo jumbo, the view of the markets heading into this weeks trading is clear: the latest inflation data not only underscores the strength of the current rally but also suggests a continued bullish trajectory. 

Who would have thought we’d finally make it here after all the excruciating rate hikes us investors endured over the last two years? 

It’s no doubt a breath of fresh air and a nice confidence booster within portfolios, but with inflation signs showing this amount of moderation…

This is definitely becoming a time in the market investors don’t want to miss out on.

Coincidence? I Think Not! 

Not to keep talking about Nvidia, but come on! In a strikingly timely twist of events, recent reports have surfaced revealing that several top Nvidia executives are selling significant portions of their shares. This development of course comes on the heels of ongoing concerns about employee complacency at Nvidia, a topic we discussed in depth in one of our previous articles yesterday. So the fact that key insiders are ditching their shares highlights a convergence of unique events that not only raises intriguing questions about the internal dynamics at Nvidia but the potential implications for investors.

You see, since the beginning of May, Nvidia has reported a whopping 10 different Form 144 filings to the U.S. Securities and Exchange Commission (SEC). This form is used to notify the SEC of the proposed sale of securities, specifically when the sale involves 5,000 or more shares or exceeds $50,000 in value. 

Among the most notable insiders selling shares is Nvidia’s CEO, Jensen Huang. On June 13, 2024, Huang sold 120,000 shares, translating to a transaction worth approximately $15.5 million based on the market close that day.

Huang’s sale is part of a broader pattern among Nvidia’s top brass. Executive Vice President of Operations Deborah Shoquist sold 41,140 shares, worth more than $45 million, on June 3, 2024. Additionally, several board members, including Dawn Hudson, Tench Coxe, John Dabiri, Michael McCaffery, Brooke Seawell, and Mark Stevens, have also sold shares in recent weeks.

Now obviously, the timing of these insider sales is particularly notable given the backdrop of concerns about employee complacency at Nvidia. As we previously highlighted, the extraordinary financial success of Nvidia's stock has led to a sense of comfort among some long-term employees, potentially impacting their drive and productivity. CEO Jensen Huang has openly addressed this issue, urging employees to maintain a high level of self-motivation and accountability.

While insider sales can sometimes signal a lack of confidence in the company’s future, it is essential to consider the broader context. Many of these sales, including Huang’s, involve restricted stock units (RSUs) and performance stock units (PSUs) that are part of executive compensation packages. Executives often sell these shares as part of a planned financial strategy when they are permitted to do so.

Moreover, despite selling 120,000 shares, Huang still holds nearly 93.5 million shares of Nvidia, representing almost 3.8% of the company’s outstanding shares. This substantial holding indicates that Huang retains significant confidence in Nvidia’s long-term prospects.

The real question with all of this is: Should investors be worried? 

The recent insider sales at Nvidia definitely raises some eyebrows, but they are not necessarily a cause for alarm. Insider sales do not always reflect a negative outlook on the company's future. In many cases, they can be (emphasis on can be) routine transactions aligned with executive compensation structures.

But still, this shouldn’t dismiss the fact for investors to consider Nvidia’s position in their portfolio going forward. Especially as some analysts predict potential volatility in Nvidia’s stock price. For instance, Sean Williams at the Motley Fool anticipates that Nvidia’s stock could plummet by at least 50%... which is a plunge most investors would not expect.  

However, while opinions such as these may seem alarming to those staked in Nvidia, the underlying business still remains robust. The company continues to lead in the AI and graphics processing unit (GPU) markets, with sustained high demand for its cutting-edge products. Plus, it’s ability to innovate and execute effectively keeps it at the forefront of the tech industry, providing strong reasons for long-term investors to maintain their stakes.

So while the recent wave of insider sales at Nvidia, juxtaposed with concerns about employee complacency, presents a thought-provoking scenario for investors. Let’s not dismiss the fact that the business fundamentals remain strong, and the company continues to demonstrate leadership in its core markets. 

In conclusion, as the coincidence of large insider selling comes off a bit strange, Nvidia is still taking in cash left and right with its stock price reflecting it. Which when it comes to investor portfolios, is all that really matters in the end. 

Monday Morning's Hottest Pre-Market Stock Movers

Buckle up because we've got the rundown on the biggest pre-market stock movers you can't afford to miss as we kick off the week.

Today's stock movements are fueled by a mix of exciting updates, clinical trial breakthroughs, private offerings, and more.

Let's dive right into the action!

Leading this morning's explosive moves is none other than Scinai Immunotherapeutics (NASDAQ: SCNI) which is on fire this morning, rocketing over 69% in heavy pre-market trading due to the continued momentum of its Loan to Equity conversation with on top European Investment Bank. 

ENDRA Life Sciences (NASDAQ: NDRA) is up more than 36% after an update on investor stakes. 

Maxeon Solar Technologies (NASDAQ: MAXN) shares are shining bright, rising over 21% with strong early morning trading volumes as they announce their presence at Intersolar Europe 2024 where they will officially showcase their latest SunPower branded energy solutions. 

Srivaru (NASDAQ: SVMH)  is climbing more than 18%, continuing its rally on exciting e-bike news breakthrough. 

Nurix Therapeutics (NASDAQ: NRIX) is gaining 17% on the back of positive drug trial results. 

Icecure Medical (NASDAQ: ICCM) is up 14%, still riding high on encouraging kidney cancer study data. As you can see, Medical breakthroughs are always a win.

Kineta (NASDAQ: KA) shares are up more than 13% amid heavy trading today. Something big must be brewing because nothing seems to be behind the move. 

XTL Biopharmaceuticals (NASDAQ: XTLB) is jumping over 12% this morning, again, with no clear cause for the explosive move. 

Conn’s (NASDAQ: CONN) shares are also up more than 11% in pre-market action.

As you can see, we definitely have some big movers this morning and in light of the key inflation data, we can assume this is only the beginning of an explosive week ahead.

So stay tuned, stay ready, and get excited… because money is ready to be made and the opportunities are ripe for the taking! 

Stocks.News does not have any positions in the companies mentioned.