The markets are headed for a weak start to the day, as investors await retail sales data. It is widely expected that July data will show a slowdown compared to June data. The numbers are expected to show an increase of 2.1% compared to 7.5% in June. The slowdown is an indicator of the depletion of the bailout money that had driven the V-shaped recovery that the markets experienced in June.
According to the Chief U.S Economist at Deutsche Bank, Matt Luzzetti, the end of these benefits puts a significant risk to consumer spending especially the low-income bracket. Amidst the risks posed by an end to the benefits, the markets are watching the impasse between Democrats and Republicans on an economic bailout. While Trump already signed an executive order on the economy, it is not enough to support a full-blown economic recovery.
Despite the weakness in the economy as reflected in the anticipated retail data. There are stocks that recorded significant gains pre-market. If the data comes out positive and beats market expectations, these pre-market gainers could close the week in the money. Some of the biggest gainers ahead of markets are as below.
Voxeljet AG [NYSE: VJET]
Voxeljet AG looks set to start the day in gains. This comes after the company reported Q2 results. The company reported that total revenues in Q2 ir dropped by 22.5%. It also reported that gross profit margins dropped slightly from 30.2% in Q2 of 2019 to 25.9%. The CEO Dr. Ingo Ederer stated that a few months ago, it got a large individual order for its 3D printers from a top U.S Electric car maker. However, he added that the company’s revenues were hit by the COVID-19 pandemic. Nonetheless, the company announced that it had managed to improve its cash position through its partnership with the European Investment Bank. He added that they were looking forward to a stronger second half of the year.
Taiwan Liposome Company Ltd [NASDAQ: TLC]
This is another top performer this morning and is up by 95% pre-market. This follows the company’s announcement that it had submitted an IND for TLC19, an inhalable Liposomal Hydroxychloroquine in the treatment of COVID-19. Given the global anticipation for a COVID-19 vaccine/cure, this stock is likely to rally all through the day on the strength of these new.
Midatech Pharma Plc [NASDAQ: MTP]
Midatech Pharma PLC is another top performer this morning and is a key stock to watch today. This follows the company’s announcement of its registration statement with regards to a 12,695,445 share resale. This is likely to keep the stock active all day and close the week on a higher note.