Stocks rallied for the third session in a row, with the S&P adding .99% while the Nasdaq rallied 1.36%. Asia markets closed mostly higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a slightly lower open, Gold is higher while Oil, Yields, and the Dollar are lower.
Stocks continued their multi-day rally on Thursday, with the S&P shaking off early morning weakness to close solidly higher. The SPY is right near that $400 handle and would really love to see a close above that into the weekend and ahead of a huge week for earnings. After the close yesterday, SNAP reported disappointing earnings and posted a large decline in ad spending. It brought down all the names in the space. If this was last Q, Nasdaq futures would be off 2%+... instead it looks like markets will be flat at the open. Again, not saying the market has found a bottom, but it certainly is a good sign. Next week we get earnings from AAPL, META, MSFT, GOOGL, and many others. Will go a long way in determining if the market has already priced in a recession and recovery. That $400 handle is key resistance:
I closed more of my ISRG calls for 350% ahead of their earnings yesterday and held a few into the report. Unfortunately ISRG reported a mixed bag of earnings and the stock is getting punished in the pre-market. My calls will be shot pending any crazy bounce. Not going to be trading it today though could be a good sign if it holds $200:
INMD traded over $30 for most of the session on Thursday before closing at $29.76. Hoping for a $30+ close into the weekend:
And still eyeing CUTR which had another strong session. The 50 and 200dma's are right there. A break above $45 could send it past $50 quick:
AMLX looks coiled. Think that $25 level comes very soon:
U consolidated yesterday, closing at $40.39 and is trading lower this morning in sympathy to the tech space. Would like to see it close above its 50dma of 39.22 today. May look to add some August calls as well for an eventual move to $50 in the next few weeks:
ROKU is also trading lower this morning. May use the dip to add some calls for earnings next week:
Here are the analyst changes of note for today:
| United Airlines price target lowered to $75 from $86.50 at Cowen |
| Cowen analyst Helane Becker lowered the firm's price target on United Airlines to $75 from $86.50 and keeps an Outperform rating on the shares. The analyst noted the company missed its June quarter guidance and issued cautious guidance for 3Q. The biggest investor pushback appears to be in the aircraft CAPEX guidance which is $20 billion over the next four years as they replace older aircraft with new more fuel efficient aircraft |
| AT&T price target lowered to $24 from $27 at Cowen |
| Cowen analyst Colby Synesael lowered the firm's price target on AT&T to $24 from $27 and keeps a Market Perform rating on the shares. The analyst noted they posted mixed 2Q22 results though the print was trumped by downside free cash flow guidance due to elongated collection cycles and increased investment |
| Domino's Pizza price target raised to $445 from $435 at Oppenheimer |
| Oppenheimer analyst Brian Bittner raised the firm's price target on Domino's Pizza to $445 from $435 and keeps an Outperform rating on the shares. Sales trends showcased a sequential improvement in Q2 primarily related to accelerating carry-out growth, and management reiterated strategies to fix lingering staffing issues in its delivery business through internal initiatives rather than a quick pivot to third-party partnerships, Bittner tells investors in a research note |
| Boston Beer price target lowered to $279 from $334 at MKM Partners |
| MKM Partners analyst Bill Kirk lowered the firm's price target on Boston Beer to $279 from $334 and keeps a Neutral rating on the shares. The analyst cites the company's Q2 earnings miss, with bigger than expected decline in depletions and a cut to its depletions and shipments outlook for FY22. The stock has come down but still trades at a 40-times expected 2022 earnings multiple, which is an "extreme premium" to an industry where the company is still a "market share donor |
| Snap price target lowered to $17 from $26 at MKM Partners |
| MKM Partners analyst Rohit Kulkarni lowered the firm's price target on Snap to $17 from $26 but keeps a Buy rating on the shares after its Q2 miss. The company's forward-looking visibility remains challenging as management did not offer Q3 guidance, while the "flat" July revenue trends imply a "steep deceleration" from the high-single-digit growth seen in June, the analyst tells investors in a research note. Kulkarni further contends that Snap is facing greater macro or vertical-mix headwinds relative to its peers |
| ServiceNow price target lowered to $590 from $695 at Cowen |
| Cowen analyst J. Derrick Wood lowered the firm's price target on ServiceNow to $590 from $695 and keeps an Outperform rating on the shares. The analyst previewed its quarter and suspects there was some isolated deal slippage as his checks remain quite constructive on broader demand conditions for FY22 |
| Twilio price target lowered to $150 from $250 at Cowen |
| Cowen analyst J. Derrick Wood lowered the firm's price target on Twilio to $150 from $250 and keeps an Outperform rating on the shares. The analyst previewed the quarter and expects a solid results and a constructive tone on the outlook, which he thinks would be better than what is priced into the shares. He has always thought 2H22 would present a compelling setup and he still holds this view |
| Atlassian price target lowered to $245 from $285 at Cowen |
| Cowen analyst J. Derrick Wood lowered the firm's price target on Atlassian to $245 from $285 and keeps an Outperform rating on the shares. The analyst previewed its quarter and expects a modest beat and in-line guidance. However, he believes its valuation is still steep |
And here is what I am watching today: CUTR, ROKU, TWLO, PTON, ABT, UNH, CI, U, SPOT, CUTR, GLD, DUST, GLL, JDST, REGN, SAGE, and IBB.
Let's have a great day!
-JB