Futures are pointing to a green start to the week, with the S&P set to open up .30% higher as I write this. Asia markets closed lower overnight while Europe indexes are in the green this morning. The US dollar is lower while Yields, Oil, and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-161/
It was a tough end of the week for markets, with the S&P closing lower on Wednesday, Thursday, and Friday after the Fed hiked rates .50%. This week we will get PCE data on Friday, the Feds preferred gauge for inflation. If that comes inline or softer than expected, could provide another boost for the market. The SPY broke the 200dma and is right at the 50dma this morning. Would want to see that hold today and maybe markets can find some footing in the coming days:
I added some NFLX lotto calls on Friday and was able to flip them to cover costs, but the market weighed and the rest expired. Still like the risk/reward on the name and think it can trade back into the low $300s. May look to add more calls this morning:
AYX closed up over 10% last week in spite of the market weakness. If it can break thru the $52s think the $57 handle comes quick. May look for some other strikes to play for that move once it breaks and will also be looking to close some of my January calls when they are 100% to cover costs and ride the rest:
RARE closed in the green every day last week. Still eyeing to add some strikes, likely Febs:
MDGL, one of the names in the NASH space I have traded over the years, announced some positive phase 3 data this morning and the stock is rocketing up over 200%. Premiums were nuts, with the Jan $120 calls going for over $10 with the stock trading in the $60s, so tough to play on a risk/reward basis unless you were extremely confident on the data. Those calls will open up over $100 this morning. Just goes to show the power of options:
Still eyeing SQ for some calls, it held the 50dma on Friday:
ULTA is back on radar after its recent pull after its strong earnings report:
And BLK is still on watch here as mentioned on last weeks watchlist. It held the lower Bollinger band despite Friday's sell off - a good sign. If it holds green today, think $730+ comes:
Here are the analyst changes of note for today:
| Amazon.com price target lowered to $150 from $170 at Evercore ISI |
| Evercore ISI analyst Mark Mahaney lowered the firm's price target on Amazon.com to $150 from $170 and keeps an Outperform rating on the shares. He is lowering his FY23 and FY24 revenue estimates by 4% and 5%, respectively, and his FY23 and FY24 operating income estimates by 9% and 8%, respectively, putting his forecasts "below the Street" in the wake of several proprietary data points that suggest ongoing softness in online retail and cloud computing demand, Mahaney tells investors. However, he continues to view Amazon as "highly attractive for long-term investors," calling it a "Dislocated High Quality" stock, Mahaney added |
| Merck price target raised to $135 from $120 at Cantor Fitzgerald |
| Cantor Fitzgerald analyst Louise Chen raised the firm's price target on Merck to $135 from $120 and keeps an Overweight rating on the shares. Chen has greater confidence in Merck's ability to extend its earnings growth following Keytruda's loss of exclusivity in 2028, and continues to look forward to several upcoming potential catalysts, including its sNDA for Lynparza + abiraterone for the treatment of adult patients with metastatic castration-resistant prostate cancer, the analyst tells investors in a research note |
End of Twitter CEO reign would be 'major positive' for Tesla, says Wedbush |
| Wedbush analyst Daniel Ives notes that in a surprise move, Elon Musk put a poll on Twitter asking if he should step down as head of Twitter and so far the results are overwhelming saying he should end his role as CEO of Twitter. Attention focused on Twitter instead of "golden child Tesla" has been another big issue for investors and likely is behind this poll results with many Musk loyalists wanting him to leave as CEO of Twitter, Ives contends. With the poll closing this morning, it appears Musk's reign as CEO of Twitter will come to end and thus be a major positive for Tesla's stock starting to slowly remove this albatross from the story, he adds. The analyst maintains an Outperform rating on Tesla, with a price target of $250, and ultimately views this as "a major step forward with Musk finally reading the room that has been growing frustration around this Twitter nightmare that grows worse by the day." |
Nvidia price target raised to $230 from $200 at Needham |
| Needham analyst Rajvindra Gill raised the firm's price target on Nvidia to $230 from $200 and keeps a Buy rating on the shares. Nvidia is Gill's top pick for 2023 and the analyst added it to the firm's Conviction List. While the analyst expects volatility in the overall data center market in CY23, he believes Nvidia's customers are upgrading to the latest H100 architecture, Gill tells investors in a research note |
| Darden price target raised to $153 from $150 at Evercore ISI |
| Evercore ISI analyst David Palmer raised the firm's price target on Darden (DRI) to $153 from $150 and keeps an In Line rating on the shares. He is raising his FY23 EPS estimate following fiscal Q2 earnings and his call back with the company, arguing that Olive Garden seems better positioned for sustainable traffic in spite of lower marketing and labor spending. However, within casual dining, Palmer said he continues to favor Texas Roadhouse (TXRH) shares over Darden given the former's restaurant level margin recovery potential and stronger unit growth |
Madrigal 'clear for approval' after 'outstanding' data, says Piper |
| Madrigal Pharmaceuticals this morning reported that MAESTRO-NASH achieved statistical significance with strong p-values and 2-3 greater treatment effect across both co-primary endpoints with clean safety, Piper Sandler analyst Yasmeen Rahimi tells investors in a research note titled "Christmas came in early for MAESTRO-NASH." With this data, resmetirom is "clear for approval" as the first nonalcoholic steatohepatitis therapy to achieve both endpoints along with strong lipid reductions, says the analyst. She believes the "outstanding" histology efficacy may come as a surprise to many investors by hitting statistical significance on both primary endpoints. Rahimi has an Overweight rating on Madrigal with a $203 price target. The stock in premarket trading is up 213%, or $135.69, to $199.49. |
And here is what I am watching today: NFLX, ROKU, SQ, ULTA, BLK, NFLX. SQ, RARE, AYX, ROKU,, SPOT, BURL, WYNN, NVDA, COST, DIS, DKS, U, TWLO, WING, CMG, and DPZ
Let's have a great day!
-JB