Stocks soared on Wednesday on the heels of the July CPI data that came in lower than expected - a possible sign inflation has topped. The S&P added 2.13% while the Nasdaq rallied almost 3%. Asia markets closed higher overnight while Europe indexes are mixed this morning. U.S. futures are in the green this morning, the Dollar, Yields, and Gold are lower while Oil is higher.
And here is my rant from yesterday if you missed it: https://www.optionmillionaires.com/jb-pre-market-rant-august-10th-2022/
It was a strong day for stocks on Wednesday, with markets rallying on weaker than expected July CPI data, as the data gives an excuse for the Fed to take their foot off the pedal in regards to raising rates - and possibly start to price in the Fed lowering rates in 2023. Stocks were well bid for most of the day, a good sign in my opinion. This morning it looks like there will be some continuation. Adding to some optimism this morning was DIS earnings yesterday after the close where they smashed estimates and offered up a bullish narrative around their Disney+ service, Hulu, and ESPN... they now have more active subscribers than NFLX. Should be enough to keep markets up today and possibly into the weekend. The SPY closed right at that $420 handle yesterday and is gapping above it this morning. Would want to see that hold today and tomorrow and could provide support going forward on any weakness. That $428 handle looks like the next area of resistance:
I added some WIX calls yesterday, as outlined on the watchlist. The stock rallied up near $78 before closing at $76.95. I was able to close some of my calls to cover costs and held the rest. Think WIX can move into the $80s in the coming days. Will use the $75 handle as a spot I would lock the rest of my calls in and revisit:
TRIP closed up another 4% yesterday, breaking into the $26s and closing over its 200dma for the first time since August of 2021. I used the move to close the last of my $23.50 calls for 400% and will just hold the rest of my $26 strikes for now. Think it has a chance to test $28 in the coming days and will use the $25 area as a spot I would lock my calls in and revisit:
MITK and AMLX both had solid sessions yesterday, closing up over 3%. The AMLX chart actually looks very nice and think a move over $30 comes soon:
ILMN reports earnings after the close today and think they will post some strong results. May nibble some speculative calls today for a move over $250 into tomorrow:
Also still eyeing YOU calls for their earnings Monday:
Here are the analyst changes of note for today:
AppLovin price target lowered to $53 from $60 at BTIG |
| BTIG analyst Clark Lampen lowered the firm's price target on AppLovin to $53 from $60 after its Q2 earnings miss and to reflect the "tempered" outlook in Software but keeps a Buy rating on the shares. The analyst remains positive on the company's 's products and the combination of owned/partnered studio content that powers and differentiates the core Software offering. Lampen also believes that AppLovin's "significant" revenue growth and margin improvement have not been fully recognized and captured by consensus |
| IAC price target lowered to $121 from $127 at Credit Suisse |
| Credit Suisse analyst Yoni Yadgaran lowered the firm's price target on IAC (IAC) to $121 from $127 following quarterly results. The analyst keeps an Outperform rating on the shares as it offers exposure to multiple attractive end-markets and its large stake in Angi Inc. (ANGI) provides another way to gain exposure to a large underpenetrated $900B TAM |
Coinbase price target raised to $100 from $90 at DA Davidson |
| DA Davidson analyst Christopher Brendler raised the firm's price target on Coinbase to $100 from $90 and keeps a Buy rating on the shares. The company's Q2 results were "broadly better" than his mid-July reset, with "positive variances" across its multiple key drivers, the analyst tells investors in a research note. Coinbase's near-term outlook remains murky, but the recent rally increases his confidence in an eventual recovery, Brendler adds, stating that he remains optimistic in a "Fed-driven crypto rally by year-end |
| Alarm.com price target raised to $90 from $84 at Maxim |
| Maxim analyst Jack Vander Aarde raised the firm's price target on Alarm.com to $90 from $84 and keeps a Buy rating on the shares. The company's Q2 results were better than expected across the board as hardware gross margins recover, the analyst tells investors in a research note. Vander Aarde added that the key factor driving Alarm.com's SaaS growth is tied to the company's high retention rates of about 94% as well as its growing subscriber base |
| Enovix price target raised to $25 from $20 at Craig-Hallum |
| Craig-Hallum analyst Anthony Stoss raised the firm's price target on Enovix (ENVX) to $25 from $20 and keeps a Buy rating on the shares. The analyst views first shipments/revenues in Q2 as a net positive and key milestone in the company's commercialization effort. Stoss believes these shipments went to Enovix's first smartwatch customer, Garmin (GRMN). The company announced it is taking down the first production line for part of Q3 to help fix yields and optimize volume production. The revenue funnel is now at $1.5B with active design/design wins growing quarter-over-quarter from $371M to $414M, the analyst points out. Enovix added 12 new accounts in Q2, bringing the total number of accounts in the revenue funnel to 75. As a reminder, the funnel now includes a leading global consumer electronics company which he believes could be Apple (AAPL |
And here is what I am watching: ILMN, YOU, CI, SAGE, DIS, SPOT, RBLX, BEAM, CRSP, EDIT, ICPT, PTON, and PYPL.
Let's have a great day!
-JB