Stocks closed lower on Wednesday with the S&P ending its 5 session winning streak to close the day off .72%. Asia stocks followed suit overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a bounce, the Dollar and Yields are lower while Oil and Gold are higher.
And here is my rant from yesterday if you missed it:
And here is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-82/
Stocks came under pressure yesterday, with the S&P closing in the red in a choppy session. Markets found some buyers after the Fed minutes, with the SPY testing $429.50 before selling off into the close. As much as I would like to see the market rally hard, think some consolidation here is healthy for a possible next leg. Seems a chop between $425-$430 on the SPY is possible next few sessions. There are no big catalysts on the horizon until September outside of Jackson Hole at the end of next week:
A comical read from Marketwatch this morning:
I love this quote: “It is fascinating to see how closely the 1929-1932 and 2000-2002 bear markets paralleled each other, with almost exactly the same kinds of pullbacks and rebounds. I expect similar behavior for 2022-2025,” he said.'
Maybe he is right, just hate those who try and overlay historical charts to confirm their bias. "Hi, I am short the market. Let me scroll my charts around until I find a time period that can confirm my bias'...
ICPT chopped around in the morning before finding some buyers in the afternoon to close at $18.73. I talked about it on my rant(above) and some of my tweets here:
Not saying ICPT is going to pull a GME here, but do think there are some similarities in regards to the high short interest and fundamentals. Will look to close some of my Sept calls at 100% when I get the chance and hold the rest. Will also try and get my thoughts together on an ICPT DD post:
MITK closed under $11 yesterday and received a notice from the Nasdaq for failing to file their 10-Q. Hoping this is nothing, they post the filing soon, and MITK can resume its uptrend:
IIPR failed to break and hold its 50dma yesterday and closed off nearly 2%. Still like this name for a move to $115 and beyond as the cannabis sector comes back in focus. Will use the $101 handle as a possible stop:
The Nasdaq closed off over 1% and typically that would mean a 5-7% drop in TRIP, instead the stock held its ground and closed above $27. Think that bodes well for more highs soon. May look to close the last of my calls today and add some later dated strikes for a potential move over $30:
EL reported a strong beat this morning but issued some weak guidance. Likely not a good thing for ULTA today. It held $400 yesterday. If it can shake off morning sellers and hold $400 will finally add some calls into next week for their earnings:
Still eyeing YOU, SPOT, JYNT, SAGE, and FUBO.
Here are the analyst changes of note for today:
| Synopsys price target raised to $420 from $380 at Needham |
| Needham analyst Charles Shi raised the firm's price target on Synopsys to $420 from $380 and keeps a Buy rating on the shares after its Q3 results and guidance. High-quality names such as Synopsys should bottom well ahead of market indices, the analyst tells investors in a research note, adding that EDA stocks overall may have seen the bottom, the analyst tells investors in a research note. Shi adds that "design democratization" driven by the slowdown of Moore's Law and the rise of domain-specific computing is going to be a multi-year tailwind for the company |
| Target price target raised to $203 from $185 at DA Davidson |
| DA Davidson analyst Michael Baker raised the firm's price target on Target to $203 from $185 and keeps a Buy rating on the shares. The company's earnings call indicated that it has made significant progress fixing the over-inventoried position that crushed Q2 margins, the analyst tells investors in a research note, noting that Target now intends to be "relatively clean" by Q4 in order to bring margins back in line with previous years. Target shares can rebound along with overall expansion in retail multiples, Baker adds |
| Tactical Underperform call for Lowe's removed at Evercore ISI |
| Evercore ISI analyst Greg Melich removed the firm's Tactical Underperform trading call on Lowe's (LOW) after the company's Q2 earnings report. The analyst, who made no change to the firm's Outperform rating or $250 price target, tells investors in a research note that Lowe's Q2 comp was expected to come in below Home Depot's (HD) due to the higher DIY penetration, but guiding to the top-end of operating margins and EPS with the lower than expected comps came as a surprise |
| Hasbro reinstated with a Buy at BofA |
| BofA analyst Jason Haas reinstated coverage of Hasbro with a Buy rating and $96 price target. The company has one of its best ever content lineups ahead with Black Panther this holiday season, followed by Ant-Man, Dungeons & Dragons, Guardians of the Galaxy, Spider-Man, Transformers and Star Wars next year, Haas tells investors in a research note. The analyst expects toy spending to hold up well even as consumers broadly pull back on other discretionary purchases |
| SolarEdge price target raised to $352 from $316 at Morgan Stanley |
| Morgan Stanley analyst Stephen Byrd raised the firm's price target on SolarEdge to $352 from $316 and keeps an Equal Weight rating on the shares. The analyst increased growth rates for solar, wind, energy storage, and clean hydrogen, and raised price targets on many clean tech stocks, due to the clean energy support featured in the new Inflation Reduction Act legislation. The bill recently passed by Congress and signed by President Biden will accelerate the decarbonization of the U.S. economy, lead to significant increased domestic manufacturing, and provide the necessary support to jump-start decarbonization technologies that are on the cusp of being commercially viable, Byrd tells investors in a research note |
And here is what I am watching today: ULTA, YOU, U, SPOT, SAGE, JYNT, FUBO, BIIB, VRTX, IIPR, and ROKU.
Let's have a great day!
-JB