Markets closed mixed on Tuesday, with the S&P ending the session up .19% and in the green for the fifth session in a row while the Nasdaq closed slightly lower. Asia stocks rallied overnight while Europe stocks are lower this morning on higher than expected inflation data. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
It was another dip and rip session for markets on Tuesday, with stocks selling into the red at the open, only to find buyers at 10:30 to rally. The SPY broke into the $430s and was above its 200dma at times until late day sellers came in with the SPY closing just under it. This morning markets are set for a lower open, with Europe inflation data weighing along with anticipation of the Fed minutes release this afternoon. These Fed minute releases have gained more importance over the past few months and this afternoons release will be something the market will be watching. If the tone is somewhat dovish then I think markets can find some footing. Would actually like to see some consolidation here between $425-$430 before the next leg but can't rule out a rally above $431 or so by Friday:
I added some IIPR calls as outlined in yesterdays watchlist. The stock found footing in the late morning and rallied over its 50dma at $106.22 before closing at $104.63. I used the move to close some of my calls out to cover some costs and held the rest. I was actually looking to add Aug calls but, with only 3 days until expiration, wanted more time. Will likely hold the rest of my September strikes and will use the $101 handle as a spot I may look to close the rest of them out and revisit:
ICPT traded between gains and losses yesterday before closing slightly down at $18.07. After the close yesterday they announced a settlement over a lawsuit in regards to their Ocaliva drug and a company looking to take a generic version to the market. The deal has a start date of Oct 2035, meaning there is a 13 year runway for unabated revenues for ICPT. Should at least put a bid in the stock. I am surprised it still hasn't garnered the attention of the MEME/SHORT crowd. One of these days I guess. I think it was Sept/Oct of 2020 when I started tweeting about GME... course I missed the big run but did have some calls into December. I'll find the tweets later today:
ULTA rallied up to $418.79 yesterday morning only to give it all back and them some. Still like the name but the chart setup does not look promising with a potential shooting star:
Maybe a better opportunity to enter calls at lower prices. Will be watching to see if $400 holds. If it does, may look to add some strikes. If not, will wait for a better entry tomorrow or Friday.
Seems the MEME craze is back with names like FUBO, BBBY, and GME garnering more attention as of late. Not one to chase but FUBO is a name I have loved before and could see some FOMO so don't be surprised if you see me enter some speculative calls.
Still eyeing calls in JYNT, YOU, and SAGE as well.
Here are the analyst changes of note for today:
|Walmart price target raised to $165 from $150 at Cowen|
|Cowen analyst Oliver Chen raised the firm's price target on Walmart to $165 from $150 and keeps an Outperform rating on the shares. The analyst said he is constructive on the company's results as the value-focused retailer is well positioned to take share with a stretched consumer and he is encouraged by the company reiterating its second half outlook|
|Global-e Online price target raised to $51 from $34 at Morgan Stanley|
|Morgan Stanley analyst James Faucette raised the firm's price target on Global-e Online to $51 from $34 and keeps an Overweight rating on the shares. Though Global-e's FY22 outlook remains "effectively unchanged" after contemplating the Q2 beat and Borderfree contribution, he is turning "incrementally bullish" on FY23 and expects strong performance to continue into next year given the company's wide range of growth drivers, Faucette tells investors in a post-earnings research note|
|Lowe's results 'good enough' given modest expectations, says DA Davidson|
|DA Davidson analyst Michael Baker keeps his Buy rating and $225 price target on Lowe's (LOW) after the company reported a slight earnings beat and maintained its FY22 guidance this morning. The negative 0.3% total com was below the consensus of 2.2%, but in-line with true expectations following Home Depot's (HD) reported comps yesterday, the analyst tells investors in a research note. Baker adds that the slight sales shortfall relative to consensus at Lowe's was made up for by lower expenses and a lower share count, leading to an EPS beat|
Stephens sees no major news from FuboTV analyst day to justify 'short squeeze'
|Stephens analyst Nicholas Zangler notes that FuboTV gave further details on its plans for achieving adjusted EBITDA profitability and positive free cash flow by FY25 at the company's first analyst day, but contends that there were "no major announcements to justify yesterday's short squeeze." He continues to look for evidence that FuboTV is capable of leveraging its interactive experience to generate associated advertising revenue and reiterates Equal Weight rating and $5 price target on shares following the analyst even|
Home Depot price target raised to $370 from $360 at UBS
|UBS analyst Michael Lasser raised the firm's price target on Home Depot to $370 from $360 and keeps a Buy rating on the shares. The company's Q2 results were solid as it "nicely" managed its profitability through a tricky macro backdrop, the analyst tells investors in a research note. Lasser further points to Home Depot's comp ticket being up 9% driven by inflation, even though its comp traffic was down 3% and its multi-year stacks were reported "decelerating sequentially|
And here is what I am watching today: YOU, ULTA, EDIT, FUBO, JYNT, SAGE, OLED, EDIT, and SPOT.
Let's have a great day!