Markets closed lower to start the week with the S&P ending the Monday session down .67%, albeit off the lows. Asia markets closed mixed overnight while Europe indexes are higher as I write this. U.S. futures are pointing to a bounce, while the Dollar, Yields, Oil, and Gold are all lower.
It was a choppy session for stocks on Monday, as markets tried to find some footing after Friday's blood bath. At times it seemed markets would pull off a nice reversal but late day profit taking put an end to that hope. This morning markets are setting up for a bounce and it will be interesting to see if it holds. Still cautious ahead of the August jobs report on Friday and this chop does not help with premiums. That $400 level on the SPY still looms large with that 50dma at $399 right below it, so would want to see that hold this week:
EVH found some buyers in the morning, trading up nearly 4% before giving it all back to close in the red. Will be watching again today and may look to add some Sept $40 and/or Oct $45 calls for the eventual move into the $40s and beyond:
PANW and MDB were pressured out of the gate yesterday... though PANW was able to recoup most of the losses while MDB closed down 6%. Still eyeing PANW for that post earnings breakout, maybe some $580 weekly calls if the stock finds support today:
CMG enjoyed a massive rally after its earnings in July, trading from $1350 to $1700 in a few weeks period. It has since consolidated and looks to have a bull-flag setting up. May look to add some calls for a potential break over $1700 and beyond:
There are still plenty of names reporting earnings this week including: LULU, MDB, OKTA, AVGO, ect. Of the names reporting LULU looks the most interesting for a premium build into their report(just like I did with ULTA). May look at some $340 or so strikes with the plan to lock some/all in before the report depending on where the premium is:
Here are the analyst changes of note for today:
Teradata price target lowered to $38 from $46 at RBC Capital
|RBC Capital analyst Matthew Hedberg lowered the firm's price target on Teradata to $38 from $46 and keeps a Sector Perform rating on the shares. The analyst cites peer multiple compression driving his reduced price target, though he also believes that the company's new cloud offerings have the chance to be more competitive given its cloud-first approach and architecture. The competitive landscape remains intense, but he is turning "incrementally more optimistic" on Teradata's market position for cloud-first analytics, Hedberg tells investors in a research note.|
|Guidewire price target lowered to $96 from $114 at DA Davidson|
|DA Davidson analyst Peter Heckmann lowered the firm's price target on Guidewire to $96 from $114 but keeps a Buy rating on the shares ahead of its Q4 earnings next week. The analyst states that he expects the company to meet or modestly exceed his forecasts for the quarter, though his reduced price target reflects a sustained pullback in valuations of its software peers. Heckmann adds that he believes that Guidewire can generate 8%-12% annual constant currency growth in total revenue over the next two years, with Subscription revenue growing in the 35%-45% range, though in the intermediate term, its margins will continue to be pressured by the declines in high-margin License fee revenue and the lower margins on Subscription revenue|
|Overstock.com price target raised to $98 from $96 at DA Davidson|
|DA Davidson analyst Tom Forte raised the firm's price target on Overstock.com to $98 from $96 and keeps a Buy rating on the shares. The analyst updates his sum-of-the-parts valuation with a $2 per share increase to the company's tZero segment after Overstock.com announced that it has completed its additional investment in the business on Friday, resulting in a 55% stake|
And here is what I am watching today: LULU, CMG, TZA, EVH, PANW, YOU, SAGE, TWLO, SPOT, ROKU, NFLX, ICPT, and SPLK.
Let's have a great day!