Markets closed lower again on Thursday, with the S&P falling .30% while the Nasdaq fell .60%. A little more concerning is the fall of the small caps - the Russell closed down over 1.2% yesterday and is off over 2% on the week. Asia markets closed mixed overnight, while Europe is mostly flat. U.S. futures are slightly green this morning while Oil, Gold, Treasuries, and the US Dollar are all in the red.
Today is the most bullish day of the year:
The first read on 3Q GDP came in at 2.9% which is better than the 2.6% expectations and the best number since mid-2014. Export numbers were better than expected as well. The report adds credibility to a rate hike before the year is out and the odds are now at 75% for one to happen by December. The Dollar rose on the news, Treasuries sold off, and futures pared gains a bit.
AMZN reported earnings after the bell yesterday. Revenue was inline but earnings were below estimates. They also issued weaker guidance for the 4Q(they typically do). The stock is off over 5% in the pre-market but is getting plenty of positive analyst comments and price target upgrades. Could be a nice bounce play today and I may look for some calls if it falls further.
GOOGL also reported another solid quarter, and showed no signs of any competitive worries from Facebook. The stock is green but only up 1%.
WYNN spiked at the open yesterday, then faded the rest of the session. The company did not announce their earnings date, so would assume it will be sometime next week. Will beed a big move today for my calls, and may revisit today for next week.
The bloodbath on NVRO continues with no news or obvious catalyst. Not one to catch falling knives but will continue to watch today and look for a position if it can muster a bounce.
Still watching the $214.50 area as resistance for the SPY and $211.25 as support:
The Russell is down 2.31% this week. In a rising rate environment, tech, growth stocks, and bank typically perform well so surprising to see the Russell underperform.. Will be something to watch.
Here are the analyst changes of note for today:
Western Digital price target raised to $72 from $60 at Argus
Argus analyst Jim Kelleher raised his price target on Western Digital after the company reported stronger than expected Q1 results and provided stronger than expected Q2 guidance. The analyst keeps a Buy rating on the shares
Amazon.com revenue momentum still impressive, says Stifel
Stifel analyst Scott Devitt says that Amazon reported strong Q3 revenue. Devitt predicts that Amazon's heavy investments will weigh on its bottom line going forward, but he thinks that the investments are necessary to support the company's growth. He keeps an $888 price target and Buy rating on the shares
Twitter shares continue to have compelling risk/reward, says UBS
UBS analyst Eric Sheridan said Twitter demonstrated stable to improving user growth and engagement for the second quarter in a row as its initiatives around live video and product begin to bear fruit. While investors continue to debate the company's stand alone vs. strategic value, Sheridan thinks the shares offer a compelling risk/reward. Sheridan reiterated his Buy rating and $22 price target on Twitter shares
Amazon long-term thesis remains intact, says UBS
UBS analyst Eric Sheridan said the mixed Q3 results from Amazon will likely cause a pause in the stock's momentum in the short-term, although the long-term thesis remains intact. The analyst made modest changes to his forecast for revenue and profits growth, but lessened the operating curve to better balance revenue and profits in outer years. Sheridan reiterated his Buy rating and $900 price target on Amazon shares
Amgen price target lowered to $163 from $193 at Leerink
Leerink analyst Geoffrey Porges lowered his price target for Amgen to $163 from $193 after the company reported Q2 results with a modest revenue beat and EPS upside on margins. However, the analyst notes that the most important disclosure was the slowing, and apparently ending, of pricing power for its Enbrel. He reiterates a Market Perform rating on the shares
Proto Labs downgraded to Hold at Canaccord
As reported previously, Canaccord analyst Bobby Burleson downgraded Proto Labs to Hold from Buy on concerns that the current period of slow growth is more protracted that he initially thought. Burleson said a recovery to historical growth rates is possible, but it could be complicated by increasing web-enabled short run injection molding and cannibalization from 3D printing. Burleson lowered his price target to $47 from $65 on Proto Labs shares
Expedia price target raised to $155 from $145 at Oppenheimer
Oppenheimer analyst Jed Kelly raised his price target for Expedia to $155 from $145 following a "solid" Q3, where Trivago/ HomeAway acceleration offset slowing OTA room nights. The analyst sees the pending Trivago IPO as Expedia's next immediate catalyst. He reiterates an Outperform rating on the shares
Alphabet price target raised to $1000 from $970 at Oppenheimer
Oppenheimer analyst Jason Helfstein raised his price target for Alphabet (GOOG) to $1000 from $970 following "strong" Q3 results. The analyst believes Alphabet continues to benefit from the same trends, namely demand for mobile clicks driven by improved ad formats, YouTube ads and shift to programmatic. Further, he sees Google Cloud as the fastest growing unit, and expects increased investor focus in 2017. Meanwhile, Helfstein sees no material signs of share loss to Facebook (FB), with Alphabet gaining from Yahoo (YHOO)/Microsoft (MSFT) and other search players. The analyst reiterates an Outperform rating on Alphabet's shares
Celgene growth outlook still 'highly favorable,' says SunTrust
SunTrust analyst Yatin Suneja says that Celgene reported "solid" Q3 results, while the company's growth outlook is still "highly favorable." The analyst says that the company's increased 2017 guidance is "readily achievable," and Suneja continues to expect the stock to outperform going forward on data and upward earnings revisions
Twitter implied guidance still weak, says Wells Fargo
After Twitter reported higher than expected ad revenue, Wells Fargo says that the company's implied guidance "remains weak." The firm says it's questionable whether the company's increased emphasis on live streams will boost its overall results. It keeps a Market Perform rating on the shares
Amazon.com has 'more than earned the right' to spend, says JPMorgan
JPMorgan analyst Doug Anmuth lowered his price target for Amazon.com to $975 from $1,000 saying that while the company is stepping up investments, it is doing so from a position of strength. Amazon's Q3 results and Q4 guidance suggest an elevated level of spend across Prime Video content, fulfillment centers, Alexa, India and AWS, Anmuth tells investors in a post-earnings research note. The company has "more than earned the right to spend" into attractive opportunities, the analyst contends. He keeps an Overweight rating on Amazon
Twitter upgraded to Perform at Oppenheimer
As previously reported, Oppenheimer analyst Jason Helfstein upgraded Twitter to Perform from Underperform saying the stock's valuation now "properly" reflects the challenging fundamental outlook. While there are many unknowns, including the long-term impact of live streaming, product changes to reduce trolling, and the never-ending innovation by competitors, the analyst now sees risk/reward equally weighted
Amazon.com investments positive, says RBC Capital
After Amazon reported in-line revenue but lower than expected operating income due to investments it made, RBC Capital analyst Mark Mahaney says the investments should "sustain" its high growth going forward. He says that the company's revenue growth remains "very impressive," and he keeps an Outperform rating on the shares
Cirrus Logic price target raised to $65 from $60 at Oppenheimer
Oppenheimer analyst Rick Schafer raised his price target for Cirrus Logic (CRUS) to $65 from $60 after the company's beat and raise results. The analyst views the results/outlook as further confirmation of a 70% content bump for Cirrus Logic in the Apple (AAPL) iPhone 7. Moreover, he expects the Apple content story to continue in the 2017 refresh, and sees further upside as likely driven by Android customers following Apple's lead in making the digital headset switch in the near term. Schafer reiterates an Outperform rating on Cirrus Logic's shares
L-3 Communications initiated with an Outperform at Baird
Baird analyst Peter Arment initiated L-3 Communications with an Outperform and a $184 price target. The analyst said the 7% pullback in shares on the softer growth outlook creates a solid entry point for long-term investors as defense tailwinds remain intact. Arment said cost reduction efforts combined with recovering margins in Aerospace Systems supports buying on the pullback
Currently holding : $DATA Nov $60 calls, $ISRG Nov $815 calls, $OPHT Dec $95 calls, $BREW Nov $22.50/$25 calls, RARE Nov $85 calls, SODA Nov $32 calls
Still looking for entry in RH and NVRO. May also look for some calls in AMZN:
|
Stock Ticker |
Call/Put |
Strike |
Expiration |
Closing Price |
Possible Entry Price |
|
NVRO |
CALL |
$110115.00 |
November |
.65 x 1.20 |
0.90 |
|
RH |
CALL |
$40.00 |
January |
.35 x .60 |
0.50 |
Lets have a Great Day!
-JB