Stock futures are indicating a lower open this morning, as Wall Street's encouraging start to 2023 takes a breather. Investors are wary of the current interest rate environment, especially after Atlanta Fed President Raphael Bostic noted yesterday that interest rates could stay above 5% for a "long time."

In prepared remarks made at a central bank forum in Sweden this morning, Fed Chair Jerome Powell avoided the sensitive topic of interest rate policy and the overall state of the U.S. economy. At last check, Dow Jones Industrial Average (DJIA) futures were off by triple digits, while S&P 500 Index (SPX) and Nasdaq-100 (NDX) futures were staring at a sizable drop as well.

Continue reading for more on today's market, including:

• Senior V.P. of Research Todd Salamone is eyeing a certain options trend. 
• Meet the chip stock ripe for a short squeeze.
• Plus, Boeing downgraded; Coinbase reduces workforce; and Frontline breaks free. 

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts and 943,216 put contracts traded on Monday. The single-session equity put/call ratio fell to 0.58 and the 21-day moving average stayed at 0.80.
2. Boeing Co (NYSE:BA) stock is 2.5% lower before the open, after Morgan Stanley downgraded the blue-chip to "equal-weight" from "overweight," noting the risk-reward catalysts have already been realized. Boeing stock was up 9.4% already in 2023, and closed at its highest level since February.
3. Coinbase Global Inc (NASDAQ:COIN) stock is off by 2.2% ahead of the bell, after the crypto company announced plans to cut 20% of its workforce. COIN fell to a record low of $31.55 on Jan. 6 and is the latest tech company to slash jobs.
4. The shares of Frontline Ltd. (NYSE:FRO) are up 24% in premarket trading, after the shipping company announced it was ending its combination agreement with Euronav. FRO is up 51.1% year-over-year.
5. Keep an eye on the NFIB small-business index and revised wholesale inventories today.

Overseas Stocks Steady but Sluggish

Markets in Asia were mixed, after tech stocks helped the Nasdaq to a two-day rally. The Nikkei in Japan led gains in the region with a 0.8% pop, following a higher-than-expected consumer price index and a weakening yen. In China, the Shanghai Composite shed 0.2% and Hong Kong’s Hang Seng dipped 0.3%, despite economic reopening hopes. South Korea’s Kospi finished fractionally higher, after the country’s November account balance shifted from a surplus to deficit.

Trepidation in global sentiment is weighing on stocks in Europe today, after two U.S. Federal Reserve officials reiterated the central bank’s hawkish policy. Investors are now awaiting a speech from Fed Chairman Jerome Powell, while the European Central Bank (ECB) said interest rates will “have to rise significantly” to tackle inflation in a “timely” fashion. At last check, Frances’s CAC 40, the German DAX, and London’s FTSE 100 are down 0.7%, 0.5%, and 0.3%, respectively.

Despite a valiant attempt to extend Friday's bounce, the Dow slipped below breakeven this afternoon to log a 112-point drop. The S&P 500 inched into the red by the end of the day as well, while the Nasdaq managed to finish with gains, though it was far off its session highs. While the easing one-year inflation outlook injected optimism into the markets and encouraged investors to buy up battered tech stocks, consumer credit data for November showed individuals borrowed more than economists anticipated.

Continue reading for more on today's market, including:

• Options bulls targeted this airline stock today.
• Margin warning put pressure on Lululemon stock.
• Plus, Big Tech name seeing increased put volume; UBER upgraded; and pharma stock dips amid job cuts.

5 Things to Know Today 

1. Walt Disney (DIS) CEO Bob Iger, who returned to the company two months ago, has told employees to come back to corporate offices four times a week. (CNBC)
2. The Chinese military held large-scale military exercises aimed at Taiwan, amid a visit from German lawmakers to meet with President Tsai Ing-wen. (MarketWatch) 
3. Puts have been running red-hot for this Big Tech staple.
4. Uber Technologies stock upgraded due to high car prices.
5. Emergent BioSolutions will lay off 5% of its workforce.

Oil Scores 3 Straight, Gold Settles at Multi-Month Highs

Oil prices settled firmly higher for a third consecutive session on Monday, as the prospects of consumer demand in China improve as the country eases Covid-19 restrictions. February-dated crude added 86 cents, or 1.2%, to settle at $74.63 per barrel.

Gold prices also finished higher, scoring their best settlement since May as last week's U.S. jobs reports continued to generate tailwinds. February-dated gold added $8.10, or 0.4%, to settle at $1,877.80 per ounce.

Every day for the next week, we're going to highlight one of Schaeffer's top seven picks for 2023. First up, we have semiconductor Aehr Test Systems (NASDAQ:AEHR). To access the entirety of the 2023 report, click here.

Aehr Test Systems (AEHR) was one of the strongest semiconductor performers in 2022 and is now up more than 270% from its 2022 lows. The shares are up 65% year-over-year and nearing all-time closing high territory.

Short interest has increased over 200% since mid-July and could lead to a capitulation event, as 16% of the stock’s total available float is sold short. There also looks to be plenty of room for analyst activity to increase on the equity. This is per the lone analyst that sports coverage on AEHR with a "strong buy" rating. 

BioCryst Pharmaceuticals Inc (NASDAQ:BCRX) stock is sinking today, down 11.6% at $10.45 at last glance, after the company's sales forecast for its skin disease drug, Orladeyo, came in below estimates. The treatment prevents attacks of hereditary angioedema (HAE). In a statement, Cowen and Company noted that the forecast will "prove to be appropriately conservative." 

Today's slide as BCRX trading at its lowest level since June. Before this session's slump, the $12 level appeared to be providing pressure, as well as the shares' 200-day moving average. Year-over-year, the equity is now down 5.7%. 

Options traders are chiming in at three times the average intraday volume after the news. So far, 5,194 calls have been exchanged alongside 1,049 puts, showing options bulls eyeing an attractive entry point after the negative price action. The January 2024 13- and 22-strike calls are the most popular, followed by January 2023 10- and 14-strike calls. 

It's also worth noting that short interest makes up 15.4% of BCRX's available float, leaving plenty of room for a short squeeze. At the stock's average pace of trading, it would take over 10 days to buy back these bearish bets. 

Emergent BioSolutions Inc (NYSE:EBS) is in the news today, after the pharmaceutical company announced it was cutting its workforce by roughly 5%. The move, along with other cost reduction measures, will save over $60 million in annual expenses. 

EBS has reversed its premarket gains, however, and was down 5.2% at $12.87 at last glance. The security sports a 73.2% year-over-year deficit, but had been moving steadily higher since its Dec. 22, 13-year low of $10.61. A short-term drop could be in the cards, however, as the stock's 14-day relative strength index (RSI) of 84.5 sits in "overbought" territory. 

Of the five analysts in coverage, four sport a "hold" rating, with one a "strong buy." Meanwhile, short interest has been on the rise, and represents 7.7% of the stock's available float, or nearly four days' worth of pent-up buying power.