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Highlights:
- NeuroBo Pharmaceuticals closed an underwritten public offering on November 8.
- The MACK stock was up over 108 per cent on pre-market Wednesday.
- Third quarter vehicle production of Lucid Group was more than triple from Q2 FY22.
The Americans voted in the mid-term polls on Tuesday, November 8, and the overall market had edged higher in the starting two days of the week. Investors are keeping a close watch on the midterm trends, as the results might have distinctive effects on the equity market, whether a red wave or continuing Democrats hold.
However, several analysts said that the stock market tends to perform better in the period after the midterm results. But the historical performance or speculations doesn't guarantee the future trading of the market.
The Americans voted with several things in mind, like the decades-high inflation, increasing borrowing costs, and other macroeconomic factors. The recessionary concerns also have left many investors in the cold in recent quarters.
Today, when the investors are simultaneously watching the election trends and equity market performance, let's explore some pre-market movers and their recent performances.
The active pre-market stocks include Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK), NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO), Mullen Automotive, Inc. (NASDAQ:MULN), Digital World Acquisition Corp. (NASDAQ:DWAC), and Lucid Group, Inc. (NASDAQ:LCID).
Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK)
Merrimack Pharmaceuticals is a pharmaceutical firm that focuses on developing drugs to treat cancer. The oncology-focused healthcare company's stock was up 108.50 per cent to US$ 8.34 at 5:29 am ET on November 9, after closing at US$ 4 in the prior session.
The closing price of MACK on Tuesday was up over eight per cent. Its pre-market price also crossed its last 52-week high of US$ 7.41, noted on April 7, 2022.
The stock of the Cambridge, Massachusetts-based pharmaceutical firm rose over two per cent YTD and six per cent QTD through its close of November 8.
Although there is no significant news for the recent surge of the MACK stock, the company reported its Q3 FY22 earnings results on November 3.
Merrimack Pharmaceuticals' net loss totalled US$ 442 thousand in Q3 FY22, as compared to a loss of US$ 525 thousand in Q3 FY21. As of September 30 this year, the oncology-focused healthcare firm is said to have cash and cash equivalents of US$ 13.1 million, against US$ 14.6 million in the year-ago period.
NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO)
NeuroBo Pharmaceuticals is a clinical-stage biotechnology firm that focuses on multimodal disease-modifying therapeutics. It primarily aims to develop therapeutics to treat viral, neuropathic, and other related disorders.
The NRBO stock was up 25.60 per cent to US$ 1.57 at 4:56 am ET on November 9, and its volume was over 19 million. The company closed at US$ 1.25 on November 8, a decline of 42.13 per cent.
The US$ 1.36 million market cap healthcare firm announced on November 8, that it closed an underwritten public offering of units. The company generated gross proceeds of around US$ 17.3 million, including the full exercise of the underwriter's over-allotment option to buy additional shares and warrants.
For fiscal 2021, NeuroBo Pharmaceuticals' comprehensive loss was US$ 15.29 million, against a loss of US$ 29.67 million in fiscal 2020.
Mullen Automotive, Inc. (NASDAQ:MULN)
Mullen Automotive is an automotive firm that engages in producing electric vehicles. The Brea, California-based EV maker claims to own and collaborate with multiple synergistic businesses that work towards the advancement of clean energy solutions.
The MULN stock was up 4.31 per cent at 4:57 am ET on November 9 to trade at US$ 0.295, and its volume was over 230.86 million. The MULN stock closed at US$ 0.2828, up over six per cent on Tuesday, November 8.
There is no specific news for the surge in its pre-market price of Wednesday. Among its recent developments, the company said on November 2, that it has reduced US$ 13 million in company debt, and was able to cut its overall indebtedness from over US$ 30 million in the prior year to current expectations of less than US$ 10 million.
Digital World Acquisition Corp. (NASDAQ:DWAC)
Digital World Acquisition Corp is a blank check company that has been in the news for some time, due to its connections with former President Donald Trump. The company delayed a vote on merging with Mr. Trump's social media platform, Truth Social, last week.
Digital World CEO Patrick Orlando delayed the voting for the merge until November 22. Meanwhile, the DWAC stock was down 8.23 per cent to US$ 25.77 on November 9, and its volume was over 23.53 million. In the prior session, it closed at US$ 28.08, down 3.51 per cent.
Some investors might closely monitor the DWAC stock, speculating over the midterm trends and its connections with Mr. Donald Trump.
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Lucid Group, Inc. (NASDAQ:LCID)
Lucid Group is an American EV maker, whose stocks were down over eight per cent on Wednesday. The price of LCID stock was US$ 12.34 at 6:06 am ET on November 9, and its volume was 23.03 million.
The US$ 20.70 billion market cap firm designs luxury EVs and is based in Newark. The company's stock tumbled on Wednesday, after the firm reported its Q3 FY22 financial results.
Lucid Group's revenue was US$ 195.45 million in Q3 FY22, against US$ 232,000 in Q3 FY21, and its net loss totaled US$ 530.1 million, against US$ 524.4 million in Q3 FY21.
The total vehicle production of the firm was 2,282 in Q3 FY22, more than triple that in Q2, and it was on track to achieve its annual production guidance of 6,000 to 7,000 vehicles. The company's Q3 FY22 revenue was driven by its customer deliveries of 1,398 vehicles in Q3 FY22.
Bottom line:
Speculations over which party might attain control of the Congress have recently been seen among the investors. With prior anticipations of the Republicans gaining control of the House of Representatives and some key Senate seats, many were expecting a political gridlock in the coming period.
A split government generally triggers a political gridlock, which some analysts believe to be a positive catalyst for the equity market. In addition, several analysts also said that the divided or split government might also ease some concerns over inflation and higher policy rates going forward.
Some investors are hoping for some policy changes if the Democrats give up their holding of Congress. The Republicans are expected to push their policies if they acquire the winning position in the midterm polls.
The traders would also keep a close watch on the CPI data, a favourable measure to gauge inflation scheduled to come out on Thursday. It would shed some light on how the central bank's aggressive efforts have brought down inflation.
Besides, it would also provide insights into the potential future stance of the Federal Reserve, which the investors are hoping to ease in the coming months.
But considering the hovering macroeconomic factors, investors should exercise due diligence before putting their bets into the market. The S&P 500 index, considered a barometer for the overall market, fell over 19 per cent YTD and about 18 per cent year-over-year.
It is important to note that pre-market movements are volatile and changes keep happening frequently. Hence, thorough research is important before investing.
