Good morning, stock futures are flat heading into Wednesdays session. Earnings last night have kicked $SCVL significantly higher this morning, with a 12% gain on top of yesterdays 3%+ rally.
UPB Here this morning. JB away for most the day today. You can direct messages to either of us in the chat room at @upb and/or @jb
$SCVL a huge move, also getting positive analyst remarks this mornings after the earnings beat...
Other earnings reports out this morning include $DKS which is falling despite raising its outlook.
$BOX is down over 6% after its earnings report.
Earnings after the close today include CRM, GEF, GES, HOME, PVH, SMTC, TLYS, UEPS.
The S&P500 continues to consolidate at record highs. This morning S&P500 futures are back at that 2900 level.
The $SPY is breaking out after another correction, this one the longest on record before hitting new highs.
A host of China ADRs are getting upgrades from $JPM this morning.
$AMZN and $GOOGL are getting big price target raises from Morgan Stanley.
The market looks ripe for more upside. Of course, despite the new all time highs, the market has seen some nasty pull backs in 2018. We are closer to one of those than we were yesterday. But I think that $300 level on the $SPY may get touched first
Here are some analyst comments from this morning:
|India potash contract price suggests tight market, says Stephens|
|Stephens analyst Mark Connelly noted that India's largest potash importers reportedly signed a new supply contract at a price of $290/mt, which represents a $50/mt increase from the current price and is about $20 higher than his forecast. The direct impact to Nutrien (NTR), Mosaic (MOS) and Intrepid Potash (IPI) is modest given that India volume is relatively small for Canpotex, but the deal suggests a tight potash market and implies that settlement with China is imminent and will be higher, Connelly tells investors. He remains bullish on all three potash stocks mentioned and keeps Overweight ratings on them all|
|Guggenheim names Square new best idea, raises price target to $100|
|Guggenheim analyst Jeff Cantwell raised his price target on Square shares to $100 from $75 and named the stock as his new best idea, stating that he thinks subscription and services-based revenues will be stronger than anticipated and that the Cash App has an emerging "butterfly effect" given its key role in providing services to the underbanked. Over the longer-term, Cantwell expects a further buildout of Cash App's services, which he sees as likely to generate significant incremental subscription and services-based revenue for Square, on which he keeps a Buy rating|
|Shoe Carnival price target raised to $44 from $38 at Wedbush|
|Wedbush analyst Christopher Svezia raised his price target for Shoe Carnival to $44 from $38 saying it has momentum as Q2 results far exceeded Street expectations and the company raised the FY18 outlook, which is likely conservative. The analyst reiterates an Outperform rating on the shares.|
|Box price target raised to $32 from $28 at JMP Securities|
|JMP Securities analyst Greg McDowell noted that Box reported second quarter revenue, non-GAAP EPS and billings that were above consensus forecasts. However, the stock slid in afterhours trading, which he attributes to a combination of Q3 billings growth, revenue and EPS guidance that were below consensus and what he sees as a "walk back" from a target of hitting a $1B revenue run-rate in the third quarter of FY21 to "not pinpointing" the quarter in which it will achieve that run-rate. His new $32 price target implies an unchanged revenue multiple applied to his newly introduced CY2020 revenue estimate. McDowell maintains an Outperform rating on Box shares|
|Amazon price target raised to $2,500 from $1,850 at Morgan Stanley|
|Morgan Stanley analyst Brian Nowak expressed increasing confidence that Amazon's rapidly growing, high margin revenue streams - namely advertising, AWS, and subscriptions - will drive higher profitability and continue to push up consensus estimates. He has not made any changes to his estimates, but raised his price target on Amazon shares to $2,500 from $1,850 to reflect its improving business mix and his belief that the new target more accurately represents the company's long-term potential earnings power. In his new sum-of-the-parts model, Nowak values core retail at about $625B, values the AWS cloud business at roughly $375B, values Prime subscriber revenue at $100B and values the advertising business at $125B. He maintains an Overweight rating on Amazon shares, which closed yesterday at about $1,933 per share|
|Alphabet price target raised to $1,515 from $1,325 at Morgan Stanley|
|Morgan Stanley analyst Brian Nowak raised his price target on shares of Alphabet to $1,515 from $1,325 citing the continued strong fundamentals in its core Google business as well as the growing visibility into its Waymo business. Nowak believes the current valuation of Alphabet ascribes little value for Waymo, but he also thinks the launch of Waymo's ride-hailing service by year-end can be a catalyst to realize that value. He currently values Waymo at $45B, or about $60 per Alphabet share, but notes this is only 25% of the $175B potential value he ascribes to the business. Nowak, who raised his 2018 and 2019 adjusted EBITDA estimates by 2%, keeps an Overweight rating on Alphabet shares|
|RH Q2 may outperform after strong Williams-Sonoma results, says Loop Capital|
|Loop Capital analyst Anthony Chukumba kept his Buy rating and $175 price target on RH (RH) ahead of its Q2 earnings next week, saying the better than expected results in the quarter from Williams-Sonoma (WSM) is a positive harbinger for the company. The analyst expects investors to focus on RH's "comparable brand revenue growth, Q3 guidance, recent senior executive departures, and early results from the recently opened next-generation design galleries"|
|GameStop may see Q2 upside on 'robust' Best Buy console sales, says Loop Capital|
|Loop Capital analyst Anthony Chukumba keeps his Hold rating and $14 price target on GameStop (GME) ahead of its Q2 earnings next week, saying that "robust" sales of video game consoles and accessories at Best Buy (BBY) in the quarter is a "positive harbinger" for its results. The analyst expects investors to focus on GameStop's comps, title release slate for the second half of 2018, any update on its CEO search, and negotiations with financial sponsors and AT&T (T). Chukumba further states that while its 4.6-times current earnings multiple represents a "substantial discount to historical average levels", the valuation is appropriate given the "secular declines" in the company's core business|
The market continues to grind out new highs on new highs. Many stocks are making new record highs. Others have been beaten down and could see a reversal as the market rotates in and out of names.
$MOS I continue to like $MOS for a strong late 2018 move and over December $34 calls to capitalize on that move.
$GME was looking oh so good just a few session ago. Since then the stock has tumbled, with no concrete news to explain the move other than speculation. Earnings next week should clear up the picture and I added some $17 calls at $.35 yesterday after locking some of them in recently at $.99.
$TXMD remains a stock I have two strikes on Oct $6 calls and Dec $9 calls. With 2 and possibly 3 FDA approvals this year, the stock is setting a foundation for a strong rally to end 2018 and into 2019.
$SCHW continues to grind higher. I have calls and look for an earnings gap fill over the next few weeks.
$FSLR is going to have sharp upside move out of recent consolidation. That is my opinion of course, nothing is ever certain. The timing of the move has been the issue as the stock has moved sideways the last few weeks. I remain in weekly calls and may look further out again.
Some names to watch today:
$OSTK rallied yesterday off the lows and actually held most of its gains into the close. I think we could see a share reversal if the recent bout of selling from the high $40's is over.
A host of Chinese names were upgraded this morning. I like $IQ longer term and think it could be a $40+ stock again. As such I may look to get some calls if it remains over key $30 support today.
Have a great trading session!