Markets rallied on Thursday, finding buyers at the 3pm hour to close solidly in the green, with the S&P ending the day up 1.41%. Asia markets closed higher overnight while Europe indexes are flat this morning. U.S. futures are pointing to a lower open as I write this, Yields and Oil are higher while the Dollar and Gold are lower.
It was a nice showing for stocks yesterday, as the SPY was able to break and hold $415 and then surged into the close. This morning we got the July PCE numbers that came in lower than expected, echoing the CPI data. At 10am we get Powell's Jackson Hole speech. Typically there are prepared remarks but there is nothing out as of yet as I write this. Everyone will be watching the tone.. hawkish and maybe we reverse course here this morning. If it is dovish, think the SPY can break back over that $420 handle:
I closed my ULTA calls for a small profit ahead of earnings yesterday as I did not like the risk/reward. After the close, ULTA reported great earnings. The stock is up 3% in there pre-market which will crush premiums. I think it can trade to $440+ today so may look at some speculative calls at the open and maybe some later dated strikes to play for a move over $460 in the coming weeks:
APRN close higher for the 2nd day in a row and over the $6 handle. Only a matter of time before this consolidation leads to a next leg higher:
ICPT chopped around in a boring session. Will need to find some buyers here to squeeze the shorts:
A great day for AMLX and my calls are finally looking better. Would want to see a move over $30 before their AdCom in September so I can close some of my calls out to cover costs and ride the rest for the binary event:
PTON laid an egg yesterday and was under pressure for the entire day failing to recoup the gap lower. Will likely take off the watchlist for now.
Will be watching TWLO, SPOT, ROKU, NFLX, and SPLK for some possible lottos today.
Here are the analyst changes of note:
| Workday price target raised to $220 from $200 at Needham |
| Needham analyst Scott Berg raised the firm's price target on Workday to $220 from $200 and keeps a Buy rating on the shares. The company's Q2 results were "solid" with macro pressures seen having "less than expected" impact, the analyst tells investors in a research note. Berg adds that while Workday's second-half guidance is more conservative based on the assumption of sales cycles elongating, its management "has yet to see widespread changes to date". The analyst further contends that the pandemic pent-up demand will trump macro pressure on Workday in the short run |
Dell Technologies price target lowered to $54 from $56 at Morgan Stanley |
| Morgan Stanley analyst Erik Woodring lowered the firm's price target on Dell Technologies to $54 from $56 and keeps an Equal Weight rating on the shares. Q2 results beat his estimates, but management was "clear that macro uncertainty is driving a demand deceleration" across the CSG and ISG segments and across consumer and commercial channels, Woodring tells investors. His FY23 revenue and EPS estimates have come down 3%-4% given the company's "new, more cautious outlook," Woodring noted. |
| Ulta Beauty price target raised to $505 from $485 at Oppenheimer |
| Oppenheimer analyst Rupesh Parikh raised the firm's price target on Ulta Beauty to $505 from $485 and keeps an Outperform rating on the shares. Ulta's EPS of $5.70 easily topped Street estimates, and comps up 14.4% were well ahead of estimates, with broad-based strength across all key categories, Parikh tells investors in a research note. Management continues to execute at a very high level, and Parikh sees more beats and raises going forward, the analyst adds |
Everbridge price target raised to $38 from $32 at Stifel |
| Stifel analyst J. Parker Lane raised the firm's price target on Everbridge to $38 from $32 and keeps a Hold rating on the shares after Bloomberg reported that the company is working with an advisor and exploring a potential sale. Everbridge's shares have been under pressure this year, declining 76% year-over-year, and he believes a potential sale would fit the "narrative" that M&A is alive and well in software, though he has no knowledge of any impending M&A activities, Lane said |
And here is what I am watching today: ICPT, APRN, ULTA, YOU, SAGE, TWLO, SPOT, ROKU, NFLX, and SPLK.
Let's have a great day!
-JB