Stocks closed lower again on Tuesday, with the S&P dropping .67% as an increase in U.S. / China tensions gave folks an excuse to take profits. Asia markets closed mixed overnight while Europe indexes have reversed morning losses and are now in the green. U.S. futures are pointing to a higher open, the Dollar and Gold are lower while Yields and Oil are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-71/
It was a choppy session for stocks on Tuesday, as Pelosi's visit to Taiwan had markets on edge. Stocks actually reversed morning lows to head higher, with the SPY testing $413, before giving it all back and then some to close at $408.06. The July jobs report remains the most important catalyst this week - hoping for a Goldilocks situation where it is not too hot nor too cold - If that is the case, think $420 comes on the SPY. If the report is dicey, could see a retest of that $400 handle:
W traded between gains and losses in the morning before finding a bid to test the $59s in the afternoon. It found sellers after that and closed up 1% at $57.45. They report earnings before the bell tomorrow so will look to take some/all of my calls off before the close today. Would like to see a break of that $59.36 handle and a move into the $60s today:
MITK couldn't find any buyers yesterday and closed off over 4% and under $11. Still like the setup here and have plenty of time on my calls for the eventual move over $15:
AMLX had another strong session. Only a matter of time before it is over $30:
U closed up over 5% yesterday and above its 50dma. Was eyeing some calls yesterday but passed. May look to nibble some lotto calls for a move over $45 into Friday:
Looks like SPOT has digested its earnings move and is set to break back over $120. May also look at some lotto calls here for a move to $125+ in the coming days:
Still eyeing CUTR but risk is there with earnings tomorrow after the close so may just wait until Friday. Call me crazy, but PTON maybe a name I start nibbling on as well.
Here are the analyst changes of note for today:
|Cognex price target lowered to $50 from $60 at Needham|
|Needham analyst James Ricchiuti lowered the firm's price target on Cognex to $50 from $60 but keeps a Buy rating on the shares. The analyst states that the fire at the company's contract manufacturer in Indonesia had minimal effect on Q2 revenues but will take a heavy toll on Q3 results, making an already challenging supply chain environment that much more difficult. Given the recent pullback in the shares, the risk-reward opportunity on Cognex looks attractive, Ricchiuti tells investors in a research note|
Uber price target raised to $75 from $69 at Evercore ISI
|Evercore ISI analyst Mark Mahaney raised the firm's price target on Uber to $75 from $69 and keeps an Outperform rating on the shares after the "largely Beat & Raise" Q2 results and issuance of a Q3 outlook for bookings that "bracketed the Street at the high end" and EBITDA guidance that was "well above the Street" consensus. A rationalization of driver incentives, growing driver supply, improving operational metrics, expanding Uber One membership and so far limited macro impacts to the Delivery segment are "creating a powerful combination of premium and sustainable top-line growth AND rapidly scaling profitability," argues Mahaney, who is "materially" raising his estimates following the report and thinks Uber shares "have a LOT more room to run|
|Incyte downgraded to In Line from Outperform at Evercore ISI|
|Evercore ISI analyst Gavin Clark-Gartner downgraded Incyte to In Line from Outperform with a price target of $78, down from $90. The company's Q2 report "was generally in-line with expectations," but he has extended his model out to 2035 to better capture the moving parts and loss of exclusivity events on the horizon, said Clark-Gartner, who cites the current valuation and lack of value-driving near-term catalysts for moving to the sidelines|
|Paycom price target raised to $400 from $375 at Stifel|
|Stifel analyst Brad Reback raised the firm's price target on Paycom to $400 from $375 and keeps a Buy rating on the shares following Q2 results that "beat expectations across the board." Given Paycom's strong sales execution, market leadership and "ever expanding, and innovative, product set," he views the company as well positioned to sustain 20%-plus revenue growth and "high levels of profitability" and raises his target as he rolls forward to calendar 2024 estimates|
And here is what I am watching today: PTON, YOU, CUTR, SPOT, TWLO, U, GWW, NFLX, CMG, SQ, PYPL, and SAGE
Let's have a great day!