Stocks closed mostly lower for the 5th session in a row on Thursday, with the S&P losing .30%, while the Nasdaq was actually able to squeeze out a again. Asia markets fell overnight after China GDP numbers came in at 2 year lows while Europe indexes are rallying this morning, U.S. futures are pointing to a slightly higher open as I write this, the Dollar, Yields, and Gold are lower while Oil its higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-61/
Markets gapped lower at the open yesterday, as weaker than expected earnings from the Banks weighed. Stocks then embarked on an annoyingly slow grind but the S&P failed to close in the green for the 5th session in a row. The script switches from data to earnings in the next week or two, and could certainly provide a catalyst. Seems e everyone is expecting a bloodbath this earnings season so think any beats/raises will be well rewarded with some outsized moves. Will have the implied move list out this weekend.
One of the names I am watching is ISRG, they report next week. As I mentioned on yesterdays watchlist, the company is flush with cash and has no debt. There should be little/no impacts from any recession - so think this stock has been taken down with the rest of the market just because - the proverbial baby with the bathwater, and offers a great risk/reward. Will be looking for calls today:
UNH reported earnings this morning that bested estimates while also raising guidance. Again, another somewhat recession proof sector - healthcare - which is why I love biotechs in the coming months. The UNH earnings is a great sign in my humble opinion. May look to add some spec calls today for a move to $515+:
Also, CI looks interesting as a sympathy play. The stock was downgraded yesterday on recession worries but UNH earnings likely negate that. Think a move back over $270 is in the cards:
INMD couldn't find any footing yesterday. Still like it for a move into the $30s in the coming days:
Still watching CUTR as well as a sympathy play on INMD if it can hold $36 today:
U closed lower yesterday after announcing an acquisition. It actually tried to reverse morning lows and traded in the green for a bit. Still like this name and think at some point it will embark in a strong rally above e $45:
And lastly, still have my eyes on SAGE, IBB, GLD, DUST, and REGN.
Here are the analyst changes of note for today:
|Upstart price target lowered to $15.50 from $19 at Morgan Stanley|
|Morgan Stanley analyst James Faucette lowered the firm's price target on Upstart to $15.50 from $19 and keeps an Underweight rating on the shares. He thinks the company's recent pre-announcement of worse than expected Q2 results is "emblematic of the cyclical headwinds" impacting Upstart's business and he is incrementally bearish on the run-rate of origination volumes into future quarters following the warning, Faucette tells investors|
JPMorgan price target lowered to $125 from $135 at Evercore ISI
|Evercore ISI analyst Glenn Schorr lowered the firm's price target on JPMorgan to $125 from $135 and keeps an Outperform rating on the shares. Trends in the quarter were "mostly as expected," though Q2 EPS was a little below his forecast and the Street's due to lower than expected investment banking results, a little lower card income and a higher provision, Schorr tells investors. The stock traded down given a weaker market environment and some outsized focus on JPMorgan's repurchase suspension, and while he calls the buyback news "important," he didn't think the bank's stance on buybacks was "all too surprising," Schorr added|
|Amazon Prime Day results look modestly better than expected, says Evercore ISI|
|Evercore ISI analyst Mark Mahaney estimates that Amazon (AMZN) generated about $8.2B in GMV and $4.4B in revenue over its two-day Prime Day shopping holiday, which he would describe as "modestly better than we would have assumed." However, he continues to see some downside to Street estimates for FY22 given Amazon's seasonality and scale in retail and the tough macro environment. Mahaney reiterates an Outperform rating and $180 price target on Amazon, which he continues to view as a top mega-cap internet long idea along with Meta Platforms (META) and Booking Holdings (BKNG|
Ross Stores price target lowered to $85 from $94 at UBS
|UBS analyst Jay Sole lowered the firm's price target on Ross Stores to $85 from $94 and keeps a Neutral rating on the shares as part of a broader research note on Softlines Retail. The analyst sees continued elevated risk that inflation will decelerate industry sales growth and weigh on market sentiment. While softline stocks have underperformed the S&P500 with 38% year-to-date average decline, more pressure ahead is likely as investors indicate little interest in buying amid decelerating sales environment, Sole tells investors in a research note|
|Lululemon price target lowered to $296 from $395 at UBS|
|UBS analyst Jay Sole lowered the firm's price target on Lululemon to $296 from $395 and keeps a Neutral rating on the shares as part of a broader research note on Softlines Retail. The analyst sees continued elevated risk that inflation will decelerate industry sales growth and weigh on market sentiment. While softline stocks have underperformed the S&P500 with 38% year-to-date average decline, more pressure ahead is likely as investors indicate little interest in buying amid decelerating sales environment, Sole tells investors in a research note|
And here is what I am watching today: CUTR, ISRG, UNH, CI, U, SPOT, TWLO, GLD, DUST, GLL, JDST, REGN, SAGE, and IBB.
Let's have a great day!