Markets rallied on Wednesday, recouping Monday and Tuesday's losses and then some, with the S&P ending the day up 1.56%. Asia markets closed higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a bounce, the Dollar and Yields are lower while Oil and Gold are higher.
And here is my rant from yesterday afternoon if you missed ->
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-72/
Stocks chopped between gains and losses yesterday, with the S&P nearing that key $410 area around 10:30am. The $410s held and stocks staged a rally for the rest of the session. The S&P is now up .60% for the week and set for its 3rd week of gains. As I have been saying all week, the jobs report tomorrow is one of the most important data pieces in sometime. Hoping for a Goldilocks situation where there is not a big beat or miss and markets can continue to find footing with the SPY testing $420:
SPOT found support after an opening pull, trading into the $117s. I went and added some weekly calls for a potential move into the $120s. SPOT waited until the late afternoon to do so and I went and closed some out to cover costs. Think SPOT can test and possibly break $125 into tomorrow so will likely hold the rest of my calls for that outcome but will use the $120 handle as and area I may look to close the position out and revisit:
W soared over 12% yesterday, giving me the opportunity to close most of my position out for some nice gains:
W is trading lower this morning after reporting decent earnings. It has a history of some large reversals, so won't rule out a move into the mid-high $60s but unfortunately the last of my calls will feel some pain at the open. If it holds $60 I may look at more speculative calls:
MITK had a great session yesterday, testing that key $11.47 level before closing up 4.2% at $11.37. Still like this for a move over $15 in the coming months:
TRIP and CUTR report after the close today. Think CUTR will post a monster beat and raise. Premiums/spreads are tough so may just wait until tomorrow to trade:
Still holding TRIP august calls so will not add anything here, though do think they will post one of their better quarters and hopefully show signs that new leadership is having a visible impact on their execution. A beat and raise and the stock is $24+:
My old friend GBT is gapping this morning on buyout rumors. Where there is smoke there is usually fire. If GBT does get a buyout offer it is likely $60+ so may look at some speculative calls just in case.
And lastly, CI posted a monster beat and raise and is gapping higher in the pre-market. Think $290+ comes quick and maybe $300 so may look to nibble some calls at the open:
Here are the analyst changes of note for today:
| RingCentral initiated with a Buy at MKM Partners |
| MKM Partners analyst Catharine Trebnick initiated coverage of RingCentral with a Buy rating and $80 price target. The company offers investors "high-visibility, multi-year stable revenue growth in a large, underpenetrated market," Trebnick tells investors in a research note. The analyst says a solid competitive position and a "robust" multi-modal communications platform positioned RingCentral to capture growth from the hybrid work-from-anywhere business transformation |
| Tandem Diabetes price target lowered to $150 from $200 at Lake Street |
| Lake Street analyst Brooks O'Neil lowered the firm's price target on Tandem Diabetes to $150 from $200 and keeps a Buy rating on the shares after the company reported weaker than expected Q2 results and reduced guidance for 2022. "This is disappointing, and we did not see it coming," said O'Neil, who has lowered his 2022 forecast to the low end of management's guidance and cut his forecast for 2023 as well. The results and short-term outlook are disappointing, but "they are far from devastating" given that the company remains in a reasonable financial position, there are only three established players in the insulin pump market, and the long-term opportunity is "large and growing," O'Neil added |
| rupanion price target lowered to $90 from $100 at Canaccord |
| Canaccord analyst Maria Ripps lowered the firm's price target on Trupanion (TRUP) to $90 from $100 and keeps a Buy rating on the shares. The analyst thinks consistent progress on a number of strategic initiatives, including the Chewy (CHWY) and Aflac (AFL) partnerships as well as international expansion, should set the foundation for Trupanion to deliver 25% annual adjusted OI growth for the next few years starting in 2023 |
| GoDaddy removed from 'TAP Outperform' list at Evercore ISI |
| Evercore ISI analyst Mark Mahaney removed GoDaddy from the firm's "Tactical Outperform" list after the company reported "in-lineish" Q2 earnings and modestly lowered its FY22 revenue guidance. Longer term, he remains positive on the multi-year, double tailwind of Digital Presence adoption and a continued shift to e-commerce, but in the near-term his estimates are largely unchanged following the report and he maintains an In Line rating with a $91 price target for GoDaddy shares |
Bandwidth price target lowered to $50 from $71 at Canaccord |
| Canaccord analyst T. Michael Walkley lowered the firm's price target on Bandwidth to $50 from $71 and keeps a Buy rating on the shares. The analyst said due to his reduced estimates and ongoing multiple compression of Communications Software companies, he lowered his price target despite solid Q2 results and a reiteration of its full-year guidance |
| Under Armour downgraded to Sell from Hold at Williams Trading |
| Williams Trading analyst Sam Poser downgraded Under Armour to Sell from Hold with a $7 price target |
| DXC Technology price target lowered to $30 from $33 at Morgan Stanley |
| Morgan Stanley analyst James Faucette lowered the firm's price target on DXC Technology to $30 from $33 and keeps an Equal Weight rating on the shares, stating that the Q1 results reinforce his view that the company's turnaround will take time. The cut to its FY23 outlook, while partially driven by foreign exchange, will likely draw skepticism around the company's ability to achieve its reiterated FY24 targets, said Faucette |
And here is what I am watching today: GBT, U, TWLO, SPOT, CI, PTON, YOU, CUTR, CMG, SQ, PYPL, and SAGE.
Let's have a great day!
-JB