Markets closed higher on Wednesday, with the S&P closing up .28% after rallying from early afternoon lows. The DOW closed up .50% and is 46 points away from that 20k barrier. Asia markets closed lower overnight and Europe markets are slightly in the red this morning. U.S. futures are pointing down, the US Dolllar is weaker and nearing the 100 level, while Oil, Gold, and Treasuries are all soaring.
The Trump press conference yesterday was a catalyst for some intra-day market moves, with comments around drug pricing rattling the Biotech sector. Will be interesting to see how this plays out in the coming weeks and could provide a headwind for IBB.
WIX broke out yesterday, breaking over $50 and closing up over 5%. I think the momentum continues and the stock can test $55 at some point next week. May look to lock some of my $50 calls in today to cover costs and for some profit.
MB had it's first red session of 2017... it had to happen eventually. Will wait to see if it tests $25 before adding anything to my current Feb $25 call position.
SODA also performed well all day yesterday, after presenting at the 2017 ICR conference Tuesday afternoon. The stock neared the $41.33 multi-year high level. Still have some Jan $40 calls and may look to add some Feb strikes today.
Earnings season kicks off tomorrow with JPM, BAC, and WFC. Not playing any of those but will give markets the first snapshot of what the Q4 season may look like.
Watching $226.50 as support on the SPY :
Here are the analyst changes of note for today:
CBS price target raised to $74 from $67 at Benchmark
Benchmark analyst Daniel Kurnos thinks CBS faces two upcoming quarters of challenging comparisons before what he predicts will be a meaningful growth reacceleration beginning in the second half of this year. The analyst, who raised his price target on CBS shares to $74 from $67, would use any short-term pullback to add to positions and keeps a Buy rating on the stock
lululemon called 'a holiday winner' at MKM Partners
MKM Partners analyst Roxanne Meyer,called lululemon "a holiday winner." The analyst thinks that the company is the "best positioned" retailer for 2017, and she says that multiple catalysts will drive its margins higher. Meyer keeps a $90 price target and a Buy rating on the shares
Habit Restaurants risk/reward appealing at current levels, says Baird
Baird analyst David Tarantino remains confident in Habit Restaurant's ability to deliver substantial economic value over time via a visible, high-ROIC unit development opportunity. He also sees the company as well positioned to deliver better operating momentum in 2017. Tarantino reiterated his Outperform rating and $20 price target on Habit shares
Leerink sees TESARO CRL as 'temporary setback'
Following TESARO's announcement that it had received a Complete Response Letter, or CRL, from the FDA for the IV formulation of Varubi in chemotherapy-induced nausea and vomiting, Leerink analyst Seamus Fernandez notes that it appears to be only a "temporary setback" and says management expects to be able to address the issue in time to gain approval in the first half of 2017. He reiterates an Outperform rating on the shares
Chipotle consensus estimates remain aggressive, says Cowen
Cowen analyst Andrew Charles said the Street's estimates for Chipotle remain aggressive despite Q4 comps. The analyst reiterated his below consensus estimates following softer than expected Q4 comps, as they further challenged his confidence the company can achieve his 2017 forecasts. Charles maintains his Market Perform rating and $355 price target on Chipotle shares
NVIDIA growth seen in data center and autonomous driving at UBS
UBS analyst Stephen Chin met with NVIDIA management and came away with the belief its data center chip sales for machine learning can be sustained and chip sales into the autonomous car market could see an inflection in the next few years. Chin notes sales in VR/AR are still modest near-term, but he also sees a strong opportunity there longer term. Chin gives NVIDIA a high multiple given its potential strong sales growth and reiterated his Buy rating and $120 price target on NVIDIA shares
US Steel sector downgraded to Market Weight from Overweight at Credit Suisse
Credit Suisse analyst Curt Woodworth downgraded the US Steel sector to Market Weight and reduced ratings on U.S. Steel (X), Steel Dynamics (STLD), and AK Steel (AKS) to Netural from Outperform due to increased supply side concerns in the U.S., as the commodity team is forecasting a sharp declines in material prices in 2H 2017, weak demand trends in 2H 2016, and expectations the infrastructure stimulus plan is unlikely to materially benefit US producers. Woodworth is concerned the boost in equity valuations following the election are overdone and said they "heavy lifting" on U.S. steel trade policy has been largely finalized following changes to injury laws and successful trade case outcomes in 1H 2016
Netflix price target raised to $150 from $130 at Morgan Stanley
Morgan Stanley analyst Benjamin Swinburne believes Netflix churn will fall year-over-year both in the U.S. and internationally, aided by the company's original programming success, and expects net subscriber additions to accelerate, both domestically and abroad, while the consensus forecast is for deceleration in net adds. Swinburne is forecasting U.S. net adds of 4.3M and international net adds of 13.3M in 2017. The analyst, who said he would be a buyer on any material pullback, raised his price target on Netflix to $150 from $130 and keeps an Overweight rating on the shares
May try some lotto $AMZN calls, will also looking for later dated strikes on MB:
|
Stock Ticker |
Call/Put |
Strike |
Expiration |
Closing Price |
Possible Entry Price |
|
SHAK |
CALL |
$40.00 |
Feb(17th) |
.20 x .45 |
0.35 |
|
MB |
CALL |
$30.00 |
Feb(17th) |
.40 x .65 |
0.50 |
|
AMZN |
CALL |
$820.00 |
Weekly |
.48 x .55 |
0.40 |
Lets have a Great Day!
-JB