Markets closed mixed on Thursday, with the S&P finishing the day down .08% while the Nasdaq rallied .41%. Asia markets closed mixed overnight and Europe markets are doing the same this morning. U.S. futures are pointing to a lower open as I write this, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-73/
It was a choppy session for stocks on Thursday, with the S&P hitting lows at 10:30, battling back into the green in the afternoon, before finding some late day pressure to close in the red. This morning the June jobs report came out and it was incredibly better than expectations ... 528k jobs created vs. 250k estimates. Insane considering all the headlines. The market did not like the news, with futures selling off once the data came out, as folks start thinking this will give ammo for the Fed to do another massive hike at the September meeting. Looks like $420 in the SPY is off the table for now and would want to see that $410 handle hold today and into the weekend or things can get ugly:
SPOT rallied out of the gate yesterday, nearly testing $125 before pulling back. I used the move to close some of my calls out for 350% and held some into today for a possible break above $125. Will be a tough go of it this morning with futures in the toilet. May look to close the last out at the open and revisit:
W tried to reverse a morning gap lower on earnings, trading into the green for a bit before finding pressure to close down 2%. Will keep on watch but will need an outsized move today for the last few of my calls:
It was a churning day for AMLX and MITK. Still like both here for higher in the coming weeks:
MITK
TRIP reported a great Q yesterday after the close but looks like the market is not a believer just yet. Hoping it can find a bid and move into the mid $20s in the next week or two but not liking the reaction so far. Sill holding August strikes but will need help.
AMZN announced it was acquiring IRBT this morning for $61... a 22% premium. Not much considering the stock was over that level a few months ago. Part of my bull case on IRBT over the years was the automated home... M&A was kicked off with Google acquiring NEST for $3.2 bil in 2014. Bitter sweet to see the deal this morning as I will no longer be able to trade it, just surprised the deal was so low.
Biotechs were on fire yesterday. ICPT, SAGE and EDIT are names I follow and they rallied. I may nibble some spec calls in all three this morning - EDIT for a move to $22+, SAGE for a move to $45+, and ICPT for a move over $20 in the coming weeks:
EDIT:
SAGE:
Likely will not be too aggressive today and may look for some TZA put hedges if the SPY fails to hold $410.
Here are the analyst changes of note for today:
| Green Dot price target lowered to $40 from $48 at Craig-Hallum |
| Craig-Hallum analyst George Sutton lowered the firm's price target on Green Dot to $40 from $48 and keeps a Buy rating on the shares. Green Dot's "good" results were overshadowed by the announced loss of two BaaS and one retail partner, Sutton tells investors in a research note. While the stock's trajectory will likely be challenged near-term, Sutton notes valuation is extremely attractive and news flow should turn positive soon |
| DraftKings quarter should 'draw a positive reaction,' says Jefferies |
| After DraftKings reported Q2 revenue that beat his and consensus estimates and raised its FY22 revenue guidance, Jefferies analyst David Katz said ahead of the company hosting its associated conference call that he views the quarter "positively" and thinks the "quarter should draw a positive reaction." Pending the call, Katz has a Buy rating and $33 price target on DraftKings shares, which are up $1.04, or 6%, to $17.40 in pre-market trading |
First Solar price target raised to $123 from $104 at Argus |
| Argus analyst Bill Selesky raised the firm's price target on First Solar to $123 from $104 and keeps a Buy rating on the shares. The company's lower Q2 EPS results compared to last year's Q2 was due to an impairment expense associated with a legacy systems business asset in Chile, which is not a "structural" event, the analyst tells investors in a research note. Selesky is positive on First Solar's earnings next year, with "significant improvement" driven by lower inflation and the resolution of supply-chain issues |
| DoorDash price target raised to $115 from $100 at Needham |
| Needham analyst Bernie McTernan raised the firm's price target on DoorDash to $115 from $100 and keeps a Buy rating on the shares after its Q2 results. The company's DashPass should help DoorDash navigate the macro uncertainty as it represents a value proposition to the consumer, the analyst tells investors in a research note. The stock offers a compelling growth opportunity using its market share lead in restaurant to improve density, McTernan adds |
| Fiverr price target raised to $50 from $40 at Needham |
| Needham analyst Bernie McTernan raised the firm's price target on Fiverr to $50 from $40 and keeps a Buy rating on the shares after its Q2 earnings beat. The company is ramping up profitability faster in response to a continued lack of end market momentum while raising the cost to drive growth from their SMB customer base, the analyst tells investors in a research note. McTernan adds that Fiverr showed promising early execution as Q2 EBITDA came in above expectations |
And here is what I am watching today: ICPT, EDIT, SAGE, GBT, U, TWLO, SPOT, CI, PTON, YOU, CUTR, CMG, SQ, and PYPL.
Let's have a great day!
-JB