Markets fell on Thursday, reversing Wednesday's gains, with the S&P closing down 1.45% after the last revision of the 3Q GDP came in higher than expected. Asia markets fell overnight while Europe indexes are mixed this morning. U.S. future are pointing to a lower open as I write this, the Dollar is also lower while Yields, Oil, and Gold are all higher.
Futures reversed morning gains then bounced this morning after the PCE data came in somewhat inline but showed an increase in household spend. One of these data points will market the bottom. If markets can reverse the morning gap, think we can see $385 or so on the SPY so may look for some calls to play for that move today. There are only 5 more sessions left in 2023 with Monday being a market holiday. Expect lower volumes, less analyst changes, and quicker swings from the lower liquidity..Would really like to see. a close over that 50dma today, but likely wishful thinking. At some point in the next few sessions, beaten up names will rally 10, 15, or even 20%. So will be watching those names like ROKU, SQ, SPOT, TWLO, PTON, and possibly BYND:
Yesterday was a 'sit on the hands' type of day ahead of todays key PCE data. I was eyeing SQ but did not want to add any more risk into a possible binary event. If markets hold their ground today, may look to add some SQ spec calls and possibly some strikes into 2023. Think SQ is over $70 in the coming weeks:
ZYME and VKTX both closed in the green yesterday despite the market weakness. Still eyeing some later strikes on VKTX to play for their data in 2023. Think can trade north of $10 in the coming weeks and $15+ in the coming moths:
ZYME reversed morning losses to close slightly in the green. $8.75 is a key spot so would want to see that held today:
ROKU closed lower for the 7th session in a row. Think this is one of those names that is being sold off indiscriminately for tax-loss reasons, which provides an opportunity. May look to add some calls into 2023 on the name:
TNDM has found some footing the last few sessions. Once it gets thru $45, should be clear sailing into the $50s:
BLK and ULTA were names I was looking to add this week. Both rallied on Wednesday only to give it all back yesterday. Will be watching both again today.
I am currently working on my Top 5 stocks for 2023 webinar. Looking to have out during the New Year Weekend.
Want to wish everyone a Happy Holidays, Happy Hanukkah, and a Merry Christmas!
Here are the analyst changes of note for today:
| Under Armour price target lowered to $14 from $20 at Wells Fargo |
| Wells Fargo analyst Kate Fitzsimons lowered the firm's price target on Under Armour to $14 from $20 and keeps an Overweight rating on the shares. Fitzsimons is encouraged by the appointment of Stephanie Linnartz as president and CEO, particularly by Linnartz's experience in a founder-led organization and her experience in digital, customer experience, as well as loyalty, all of which appear to be transferable to Under Armour, the analyst tells investors in a research note |
| Charter upgraded to Equal Weight from Underweight at Wells Fargo |
| Wells Fargo analyst Steven Cahall upgraded Charter to Equal Weight from Underweight with a price target of $340, down from $370. Charter's network evolution and capex plans are now well understood, and Cahall believes downside has been de-risked, the analyst tells investors in a research note. |
FuboTV price target lowered to $3 from $4.50 at Needham |
| Needham analyst Laura Martin lowered the firm's price target on FuboTV to $3 from $4.50 and keeps a Buy rating on the shares. The analyst cites the company's worse than expected FY23 operating losses, though she remains positive on FuboTV's sports-first focus, skinny bundle economics, tech stack excellence, advertising revenue and profitability upside, consumer demographics, and content ownership upside potential. FuboTV represents an inexpensive way for investors to participate in the U.S. consumer shift toward OTT and Streaming TV, Martin tells investors in a research note |
| Tesla price target lowered to $175 from $250 at Wedbush |
| Wedbush analyst Daniel Ives lowered the firm's price target on Tesla to $175 from $250 and keeps an Outperform rating on the shares. Based on the firm's work, Ives says Tesla will likely miss reduced Street estimates for Q4 with a softer trajectory for 2023, and thinks Q4 delivery units are now likely in the 410k to 415k range down from the firm's prior 450k estimate and the Street's numbers in the 435k range, the analyst tells investors in a research note. Tesla is facing some serious macro and company specific EV competitive headwinds into 2023 that are starting to emerge both in the US and China, Ives contends |
And here is what I am watching today: SQ, VKTX, ROKU, NFLX, PTON, BYND, ALGN, ROKU, ULTA, BLK, RARE, AYX, SPOT, BURL, WYNN, U, TWLO, CMG, and DPZ.
Let's have a great day!
-JB