Markets closed lower too start the week, with stocks reversing morning losses to trade higher before noon, only to give it back. The S&P closed down .28% while the Nasdaq finished off .18%. Asia stocks sold off overnight with China markets down over 2%. Europe indexes are also lower as I write this. U.S. futures are pointing to a red open, the Dollar, Oil, and Gold are higher while Yields are lower.
And here is my rant from yesterday if you missed:
And this is what UPB is reading this morning:
Stocks looked set to resume their rally from last week until news confirming Pelosi's visit to Taiwan hit the wires. The war in Ukraine already had some thinking it may embolden China to retake Taiwan. This visit by Pelosi only stokes the fire and adds uncertainty, something markets do not like much. Will be interesting to see how this plays out over the coming days. Would have to think China will start moving more equipment, troops, and ships around the area in response(at minimum). To me this seems selfish, as Pelosi is likely done this year and will use the high profile visit to cement her 'legacy'. Time will tell but hoping there is a peaceful outcome to this...
The SPY held $410 yesterday but is gapping below that level this morning. Hoping we can get a bid above that level today and set things up for that $420 test:
As outlined on yesterdays watchlist, I went and added some MITK calls. I was eyeing the $12.50 Aug strikes but went with the October calls, which gives the stock plenty of time to rally. After listening to the conference call, I am even more bullish as the company is really seeing better than expected growth in their mobile verify product -> https://www.miteksystems.com/identity-verification
Think this can rally past $15 in the coming weeks:
I also added some W calls as discussed in yesterdays watchlist. The stock received a positive analyst note this morning. looking for it to shake off any morning gap lower and get above that $60 handle. Will be quick to close the position out if the stock reverses under $55 and revisit:
It was a boring session for CI, closing down .71%. I may just pass on adding anything before they report Thursday, and look to trade it post-earnings:
U closed right below its 50dma yesterday which is an area it has struggled with since April. If it can break and hold $39 today think it can finally work its wait into the mid-high $40s. Will be watching for a potential entry today:
YOU reports earnings in two weeks. Still love this story and would be shocked if they did not post another huge beat and raise. The Aug $30s or even Sept $35s look interesting on a risk/reward basis. May look to add some on strength today:
Also eyeing SPOT, TWLO, SAGE and CUTR today. If markets come under pressure today, may nibble a few TZA calls as a hedge.
Lastly, a decent read here from Marketwatch this morning:
Here are the analyst changes of note for today:
| Stratasys checks point to 'modestly above expectations' demand, says Lake Street |
| Lake Street analyst Troy Jensen said his channel checks point to Stratasys demand that was "modestly above expectations" in the second quarter and he believes revenue growth and operating profits will accelerate in the the second half. The analyst, who believes shares could "provide meaningful upside from current levels," reiterates a Buy rating and $29 price target on Stratasys |
| ON Semiconductor price target raised to $80 from $77 at B. Riley |
| B. Riley analyst Craig Ellis raised the firm's price target on ON Semiconductor to $80 from $77 and keeps a Buy rating on the shares post the Q2 results. "Bears will say this is as good as it gets, and while beat magnitude will be hard to top, product momentum with leadership A&I products offers stock catalyst potential," Ellis tells investors in a research note |
| Celsius Holdings price target raised to $112 from $100 at B. Riley |
| B. Riley analyst Jeff Van Sinderen raised the firm's price target on Celsius Holdings (CELH) to $112 from $100 and reiterates a Buy rating on the shares. Although transitioning to the PepsiCo (PEP) direct-store delivery network will be disruptive near term, the arrangement provides potential for considerable long-term growth acceleration, Van Sinderen tells investors in a research note. The analyst also believes Celsius has the potential to exceed Q2 expectations through continued robust sales growth |
| Arista Networks price target raised to $145 from $135 at Evercore ISI |
| Evercore ISI analyst Amit Daryanani raised the firm's price target on Arista Networks to $145 from $135 and keeps an Outperform rating on the shares after the company reported "another impressive beat and raise," despite continued headwinds on the supply chain front. Arista was able to ship more than expected, drawing down about $100M of deferred revenue balance, but its above Street September quarter and full year revenue guidance do not include any deferred revenue drawdowns, which could be a potential source of upside, Daryanani said. The analyst continues to call Arista a Top Pick, citing the view that it is positioned to sustain greater than 30% top-line growth on a multiyear basis and is better shielded from supply issues than peers. |
| Builders FirstSource price target raised to $75 from $71 at B. Riley |
| B. Riley analyst Alex Rygiel raised the firm's price target on Builders FirstSource to $75 from $71 and keeps a Neutral rating on the shares. The company reported "strong" Q2 results but demand and commodity tailwinds are reversing with a decline in single-family orders and lower lumber prices expected in the second half of 2022, Rygiel tells investors in a research note. The analyst cites the recent stock price runup and expectations for a slowdown in homebuilder demand tied to rising rates for the Neutral rating |
| Arista Networks price target raised to $163 from $154 at Cowen |
| Cowen analyst Paul Silverstein raised the firm's price target on Arista Networks to $163 from $154 and keeps an Outperform rating on the shares. The analyst said revenue is tracking well ahead of investor expectations despite the adverse impact of supply constraints; and it would be translating into even greater EPS upside but for supply constraints that have even greater cost impact. |
And here is what I am watching today: YOU, CUTR, SPOT, TWLO, U, GWW, NFLX, CMG, and SAGE.
Let's have a great day!
-JB