Markets closed lower again on Thursday, with the S&P losing .76% and is now down 2.47% on the week. Asia markets closed mostly higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a bounce while the Dollar, Yields, Oil and Gold are all higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-182/
It was another rough day for stocks on Thursday, as they gapped lower at the open and failed to find any sustained bid. After the close NFLX reported a decent quarter that seemed to come in better than feared and also issued some decent guidance. Bears will cite the EPS miss, but most of that was from currency issues. Next week earnings season picks up with names like TSLA, INTC, and others reporting. Will certainly be an interesting week ahead of the Fed decision on Feb 1st. The SPY tried, but failed, to close back over the 50dma. Would be a good sign if it can find some support here and close above that into the weekend. It seems every few hours another company is announcing layoffs. Google, W, and others were this morning. MSFT yesterday. As I have been saying, everything has been out there about the econom, there are not much in the way of surprises. The market is a forward looking mechanism, not a backwards one. Not saying there is not a chance for more downside, just think a lot of the headlines the past few days are baked in:
The Dow was the better performer of the indexes in 2022 but is now in the red for the year. Definitely something to watch:
AXSM rallied after the bell yesterday, testing $73 before pulling back to close down nearly 2%. I used the move to close the last of my Jan calls for 600% and went and added some Feb strikes. Think this is such a great story and AXSM can be one of those small cap Bios that becomes a large cap Bio over the next few years:
ZYME gapped higher at yesterdays open after a large stakeholder purchase and some positive data. ZYME then went and gave all those gains back... such a frustrating stock to hold at times. Still think this is headed into the mid-teens in the coming weeks:
ISRG reports earnings on Tuesday. It closed under its lower Bollinger band yesterday and would think a snap back rally is coming. May look to add some calls into next week:
Really love this MASI setup with blue-skies over $171. May look to add some Feb strikes today:
As I have been saying for the past few weeks, think this is the year for Biotech names. I am almost done with my webinar of 10 names I think will do really well this year. Hopefully have out by this weekend.
Here are the analyst changes of note for today:
PagerDuty (PD) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $36
Innovative Industrial Properties (IIPR) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
Willis Towers Watson (WTW) initiated with a Market Perform at BMO Capital Markets; tgt $260
Wayfair (W) initiated with a Sector Weight at KeyBanc Capital Markets
And here is what I am watching today: IBM, ISRG, MASI, ISRG, ROKU, NFLX,, ALGN, AXSM, EXAS, ZYME, SPOT, GNRC, VKTX, UDMY, RARE, SAGE,, IBM, and CMG
Let's have a great day!
-JB