Midday Report: Promising $10 & Hot AI Stocks

U.S. stocks displayed downbeat results on Wednesday, with the tech sector's recent surge at the forefront of investors' minds alongside considerations for potential rate cuts.

As of 11:30 AM ET, the Dow was down -51.4687 points, or -0.1316%, at $39060.69. The Nasdaq Composite lost -7.0312 points, or -0.0357%, at $19694.098. The S&P 500 declined -9.38 points, or -0.1715%, at $5459.91. Among the 11 major S&P 500 sectors, 6 showed negative movement, with Energy leading the way with a -1.74% decrease.

As Treasury yields rose slightly from three-month lows, the 10-year Treasury note increased by six basis points to 4.3%. This shift follows a series of uncertain sessions, leaving market participants to ponder if the current downturn in stocks is a brief lapse or the onset of a deeper pullback, especially given Nvidia's significant influence on the broader market's performance.

Moreover, economic indicators are in sharp focus this week, particularly ahead of Friday's pivotal PCE inflation data. Federal Reserve officials have echoed a theme of caution, indicating that any upcoming decisions on rate adjustments will be heavily reliant on forthcoming economic data.

Top Movers: Under $10

Anew Medical Inc. (WENA) is up 146.06% today to trade at the current level of $4.06. This comes after the company announced the issuance of European patent EP3377091B1 for ANEW’s secreted Klotho gene sequence and gene delivery systems, aimed at treating diminished cognition, memory loss, dementia, and other neurodegenerative diseases.

Ocean Power Technologies (OPTT) zoomed 58.24% in today’s trade to $0.21 after announcing that it has reached an agreement in principle on a sole source contract award for multiple WAM-Vs for delivery to a Department of the US Government.

In current trading, Singlepoint Inc (SING) stock is at $0.14 following the issuance of an update to shareholders from CEO Wil Ralston on key corporate and industry developments as the Company is at or is near completion of the annual audit and is preparing to file its annual report.

Nexalin Technology Inc (NXL) rose 17.70% in the early hours of today's trading to move at $2.66 after  announcing positive results of a clinical study designed to evaluate the feasibility, safety, and efficacy of transcranial alternating current dynamic frequency stimulation (tACS) as an add-on treatment for the symptoms of major depressive disorder (MDD).

In the current trading session, Kopin Corp. (KOPN) jumped 16.98% to $0.81 over a previous close of $0.69 after announcing that it has received a contract to develop a high-resolution eyepiece assembly for use in the new Commanders Launch Assembly (CLA), used in the US Army’s Next Generation-Short Range Interceptor (NG-SRI) system.

Ex-Dividends Stocks

American Healthcare REIT Inc (AHR) is about to trade ex-dividend tomorrow, meaning that investors who buy the stock after tomorrow will not be eligible for the next dividend payment. The company's next dividend payment will be $0.25 per share. It has fixed June 27 as the record date for the same and will pay the actual dividend on July 19. Last year, the company distributed a total of $0.25 to its shareholders. Based on the last year's worth of payments, AHR has a trailing yield of 1.71% on the current stock price of $14.60.

Another stock that is shelling out dividends tomorrow is Bancolombia S.A. ADR (CIB), having a market capitalization of $3.71B. It will pay a dividend of $0.9 per share, the payment date of which is July 12. Currently, the stock is trading at a trailing dividend yield of 9.91%.

Shares of Invitation Homes Inc (INVH) will be the talk of the stock market on Thursday as the stock will turn ex-dividend. The company's next dividend payment will be $0.28 per share, and in the last 12 months, it paid a total of $1.08 per share. Last year's total dividend payments show that INVH has a trailing yield of 3.06% on the current share price of $35.26.

Tomorrow, Northern Oil and Gas Inc. (NOG) is also set to go ex-dividend tomorrow. The next dividend payment from NOG will amount to $0.4 per share. June 27 has been designated as the record date for this dividend, with the actual payout scheduled for July 31. In the previous year, NOG distributed a total of $1.55 to its valued shareholders. Considering the cumulative dividend payments from last year, the trailing yield for NOG stands at 4.07% based on the current stock price of $38.12.

Crypto Market Highlights

• Worldcoin and Alchemy announced a partnership to develop the infrastructure for the World Chain ecosystem. 

• Bitstamp is delisting Tether’s euro-pegged stablecoin (EURT) in preparation for Europe’s Markets in Crypto-Assets Regulation (MiCA). 

• PancakeSwap has partnered with Allora Network to launch an AI-powered prediction market on Arbitrum using AI-driven price feed data.

• The Sui network will enhance its custody capabilities through a collaboration with Copper to attract institutional finance.

• Crypto lawyer Irina Heaver suggests new UAE regulations may ban crypto payments; the CBUAE discussed digital transformation projects under its financial infrastructure program on June 5.

Most Shorted Stocks

Innovative Eyewear Inc (LUCY) was one of the most shorted stocks as of the latest short interest figures, with 37.70% short interest. The days to cover ratio, a measure of how long it would take for all the short positions to be covered based on average trading volume, is 0.2. This represents a change of 5602200 shares, which corresponds to a +5,728.22% increase in short interest. The total value of the shares held short is estimated to be around $1.94 million. The average daily volume stands at 30.61M shares, and the market capitalization of the company is $8.09M.

ImmunityBio Inc with the symbol IBRX currently has a short interest of 34.60%. The short interest has changed by 40000 shares. The days to cover ratio stands at 7.7. The estimated value of the shares held short is approximately $366.8 million. On an average day, 7.15M shares are traded, with the company's market capitalization totaling $4.75B.

For the stock Sunnova Energy International Inc (NOVA), the current short interest is at 34.23%. This represents a significant short interest change of -3690000 shares, corresponding to a short interest percentage decrease of -9.62%. The days needed to cover the short positions amount to 3.7. The approximate worth of the shares held short is $196.81 million.

With the symbol ZYXI, the stock currently has a short interest of 33.16%. The short interest change is -120000 shares, compared with a short interest percentage change of -2.07%. It would take approximately 43.6 days to cover all the short positions. The shares short value is estimated to be around $300.07 million. The company boasts an average daily volume of 128.70K shares, contributing to a market capitalization of $275.37M.

The stock ALT has a current short interest of 33.10%. The short interest percentage has experienced an increase of +1.78% while there was a change of 410000 shares in short interest. The ratio indicating the time required to cover short positions is 7.0. The calculated worth of the shorted shares amounts to around $38.01 million. Trading activity averages at 3.62M shares per day, while the company's market capitalization stands at $473.50M.

AI Stocks to Watch

According to our ST Score evaluation, EPAM Systems Inc (EPAM) emerges as a high-quality stock in the AI industry, attaining an impressive score of 59.0. The stock's profitability, and financial strength are strong. Additionally, it is neutral in terms of value, performance, growth, stock sentiment, Piotroski Score, and forecast.

Our ST Score also classifies Palantir Technologies Inc (PLTR) as a high-quality AI stock today, presenting a Score of 60.0. The stock has strong fundamentals in terms of profitability, financial strength, and Piotroski Score. However, it has weak value. The performance, growth, stock sentiment, and forecast are neutral.

Another stock in the category, NICE Ltd ADR (NICE) has the ST Score of 59.0, which means that the stock carries the potential for higher returns. The stock is strong in valuation, profitability, and Piotroski Score. Performance, growth, financial strength, stock sentiment, and forecast suggest a neutral outlook.

Sprinklr Inc (CXM) stock has the ST Score of 53.0 which implies that the AI company has a high probability of beating the market. The stock's strengths lie in its valuation, and profitability. However, it shows a neutral outlook in performance, growth, financial strength, stock sentiment, Piotroski Score, and forecast.

Zoom Video Communications Inc (ZM) currently has the ST Score of 55.0, which signifies a huge upward potential. The AI stock's strong points are its valuation, profitability, and financial strength, while its weak points are its growth, and stock sentiment. The stock's performance, Piotroski Score, and forecast indicate a neutral outlook.

Best Regards,
Stocks Telegraph Team