The main stock indices are up in early morning trading and there is a probability that they could trade in positive territory when markets open. The positive momentum is drive by news of a possible stimulus to bail out the economy. Last week, republicans indicated that they were considering additional spending of $1 trillion to save the economy from the effects of the pandemic.
According to the Whitehouse economic advisor, Larry Kudlow, a new bill could be presented before congress and will include the disbursement of about $1200 checks to Americans that fall under some income thresholds. The market expects that a stimulus package will help cushion the population and businesses, and by extension, the stability of the equity markets.
Another factor holding up the market today is corporate earnings by some major corporations. The market is expectant that positive earnings news could point to underlying strength in the market. Even as the market remains speculative in pre-market trading, there are stocks that are already recording some massive gains ahead of market opening and could record some even stronger gains when markets open. Some of the biggest gainers pre-market are as below:
Wilhelmina International Inc [NASDAQ:WHLM]
This is one of the biggest gainers in pre-market trading and is currently up by over 100%. There isn’t much news around this stock at the moment, which makes its rally purely a price action move. The stock had been trading in a range for months but broke out on Friday to hit a high of over $7. While it rescinded before market close, this was a signal that buying momentum was on the rise, triggering the current price action. Given the positive sentiment in the overall market at this point, there is a likelihood of this stock sustaining its current positive price action when markets open.
Sunesis Pharmaceuticals Inc [NASDAQ:SNSS]
Sunesis Pharmaceuticals is another top mover pre-market and is up by over 20%. Like WHLM, there is nothing much going around this stock at the moment. The last time the company had any major news was 3 weeks ago when it announced that it was cutting some of its workforces to focus most of its resources on PDK1 inhibitor SNS-510. From its current price action, traders will be looking at its volumes for direction. High volumes could see it sustain its pre-market price action all through the day.
Marathon Patent Group Inc [NASDAQ:MARA]
This is another top performer pre-market and is currently up by over 30%. The rally comes just days after the company announced the pricing of its $6 million IPO. The company announced that it intends to use the money to fund the expansion of its operations. With no major news this morning, volumes will play a key role in its price action.