It was a mixed session for markets to start the holiday shortened trading week. The Nasdaq soared over 1%, the S&P squeezed out a .16% gain, while the Dow finished the day off .42%. Asia stocks closed lower overnight while Europe indexes are rallying this morning. U.S. futures are pointing to a lower open, the Dollar and Oil are higher while Yields and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-55/
Stocks reversed early morning losses, with the Nasdaq soaring over 1%, as Yields fell and tech names found bids. Today we get the Fed minutes and Friday we will get the June jobs report. Would hope the Fed minutes are somewhat dovish, and leave open the possibility the Fed will not raise rates at the September meeting. Think markets can find support if that is the case. If the Feds tone remains hawkish, likely more downside today. Was nice to see the SPY break and hold that $380 handle. If that can hold again today, could be setting up for another multi-day bounce like we had in mid-June and a possible retest of $390(and higher):
Yields are falling to multi-month lows. Another possible positive catalyst, at least for some of the beaten up Tech names. I went and added U calls again in the morning. Sure enough the stock squeezed, trading up nearly 13% in the day. I was able to close some of my calls out for 300% and 500% and held the rest into today. If markets find a bid today and tomorrow, think $46+ is possible so will likely hold for that outcome while using the $40 level as a spot I will take the rest of my calls off and revisit:
BHC closed back above $9 yesterday. Still hopeful for my calls and would like to see some continuation today. Should really gain some steam on a move over $9.25:
BPT announced their second quarter dividend after the close yesterday of
$1.4049510 up from $1.08 the quarter before. Chart does not look so good after the possible bull-flag but could get some fomo into the ex-divy date in two weeks. Won't look to add any August strikes until that $25 handle is broken:
TRIP is starting to look better after hitting multi-year lows last week. Should be clear sailing over $20:
Lastly, TNDM is back on watch here. If it finds support today, could see a move past $69 in the coming sessions:
Here are the analyst changes of note for today:
| MetLife price target lowered to $80 from $81 at Evercore ISI |
| Evercore ISI analyst Thomas Gallagher lowered the firm's price target on MetLife to $80 from $81 and keeps an Outperform rating on the shares. The setup for Q2 earnings for life insurers "should be on the weaker side for most" and 2023 estimates will also likely come down for most given material weakness in equity markets this quarter, Gallagher tells investors in his preview for the group |
U.S. Steel price target lowered to $20 from $27 at Morgan Stanley |
| Morgan Stanley analyst Carlos De Alba lowered the firm's price target on U.S. Steel to $20 from $27 and keeps an Equal Weight rating on the shares. Steel prices have fallen faster from their March highs than he expected and he is marking-to-market his steel and scrap price forecasts for 2022 and 2023, leading De Alba to reduce estimates and price targets across his Americas Steel coverage |
| Vertex now-lifted hold result of FDA 'being super cautious,' says Jefferies |
| After Vertex Pharmaceuticals announced that the FDA has lifted the clinical hold placed on the Phase 1/2 clinical trial of VX-880, Jefferies analyst Michael Yee said he believes the hold was "an example again of FDA being super cautious on a lot of ongoing programs in the industry," but the faster than average lifting of the hold supports a view the issue was minor. He maintains a Buy rating and $335 price target on Vertex shares |
| Bath & Body Works valuation attractive after 60% selloff, says B. Riley |
| B. Riley analyst Susan Anderson remains a buyer of Bath & Body Works and believes the stock is trading at an attractive valuation after seeing a 60% pullback year-to-date. The company has "best-in-class" product, strong double-digit margins, resiliency in a recession and a lack of competition, Anderson tells investors in a research note. The analyst has also seen its online traffic hold steady even as consumers return to the store channel and online search interest pick up momentum. She reiterates a Buy rating on Bath & Body with a $67 price target |
Wells Fargo upgrades Rocket Companies to Overweight, raises price target to $10 |
| As previously reported, Wells Fargo analyst Donald Fandetti upgraded Rocket Companies to Overweight from Equal Weight with a price target of $10, up from $6.50. While the residential mortgage market remains extremely challenging, the analyst sees Rocket as a beneficiary of the dislocation, and interest rate expectations seem to have less upside tail risk. Reflecting the tough mortgage backdrop, the shares are down 43% year-to-date versus the S&P500 -20%, Fandetti adds. He now sees a better risk/reward for the stock in a sector where negative sentiment may have peaked. And as capacity comes out of the origination market, margins should further stabilize and at some point increase modestly, the analyst contends |
| Merck upgraded to Buy from Neutral at Daiwa |
| Daiwa analyst Narumi Nakagiri upgraded Merck on July 1 to Buy from Neutral with a price target of $102, up from $89 |
Livent price target lowered to $24 from $29 at Deutsche Bank |
| Deutsche Bank analyst Corinne Blanchard lowered the firm's price target on Livent to $24 from $29 and keeps a Hold rating on the shares. The analyst expects the lithium market deficit to "structurally further deepen" on the medium-term, driven by electric vehicle demand despite increasing efforts on the supply side to boost project development |
And here is what I am watching today: BPT, TNDM, SAGE, SRPT, GLL, DUST, JDST, IBM, EXPE, U, SPOT, ROKU, and CVGW.
Let's have a great day!
-JB