U.S stocks are headed for a bearish start to the day after yesterday’s statements by the Fed Monetary Committee on interest rates. Yesterday the Federal Reserve announced that it would keep interest rates as they are, while also offering a positive message on the direction of the U.S economy for the rest of the year. However, the Fed also announced that while the economy was recovering fast, the future remained uncertain.
It also added that the country’s economic activity would continue to face challenges from the COVID-19 pandemic. This has sent the message that despite the easing of lockdowns, the pandemic will continue to be a dark cloud on the economy until a vaccine is found. As such, the fact that none has been found yet means that uncertainty could last for longer. That’s because even at the point that one is found, there still could be a period of uncertainty as countries move to distribute the doses to their population. Despite the bearish outlook in the day, the overall sentiment of the market remains bullish. It is for this reason that stocks that have positive news about them are gaining quite strongly in the day. Some of the top performers ahead of markets opening are as below:
Enservco Corporation [NYSE: ENSV]
Enservco Corporation is a top gainer this morning and is up by over 49%. This is largely price action-driven, as there is no news about the company at the moment.
A month ago, the company announced its Q2 results and they reflected a slowdown in economic activity due to its economic activity. The company also stated that it was well-positioned to meet the company’s client base. The company also announced that it was refinancing its debt to improve its balance sheet. With the COVID-19 wave slowing down globally, investors are likely to keep bidding up the price.
Northern Dynasty Minerals Ltd [NYSE: NAK]
Northern Dynasty Minerals Ltd is another top performer this morning and is up by over 35%. This is largely a price action move and comes days after the company’s CEO presented at the H.C Wainwright & Co. The fact that he touched on the company’s Pebble project continues to create excitement in the market.
Sorrento Therapeutics Inc [NASDAQ: SRNE]
Sorrento Therapeutics Inc is another top performer this afternoon and is up by over 32%. This follows the company’s announcement that it had got a study may proceed letter from the US FDA for its phase 1 clinical trial for its COVID-19 treatment called COVI-GUARD.