July 19th, 2022 Watch List

Stocks reversed morning gains to close lower on Monday, after a Bloomberg report came out that Apple was cutting costs. The S&P closed down .84% while the Nasdaq closed down .81%. Asia stocks closed mostly higher overnight while Europe indexes are doing the same. U.S. futures are pointing to another higher start to the day, the US dollar, Oil, and Gold are lower while Yields are higher.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-63/

It was a rather annoying session on Monday, with stocks showing strength in the morning only to give it all back and then some - a classic premium crush. If there is a positive from yesterdays session, it is that the SPY held that $380 handle. The negative, is that it has now closed lower in 5 of the past 6 sessions. Outside of the ECB's rate decision Thursday, there is not any real catalyst to speak of, so NFLX's earnings after the close today gain more importance. Hopefully they can issue decent guidance because I think their sub numbers will be worse than expected this Q:

Another thing to note with earnings is that ' 57% of the companies who have reported so far have beaten earnings per share and revenue expectations, according to S&P Global Market Intelligence'

ISRG hit highs in the morning only to reverse course and close down 2%. Would prefer to take some off to cover costs before their earnings Thursday. Hoping to get another chance today:

INMD also looked great in the morning only to give it all back. Still like this one for the eventual break over $30:

U rallied into the high $36s yesterday morning and I was able to take off some of my calls for 100% to cover costs. The chart is looking really nice... a green session today and think $40+ comes very quick. Will hold the rest of my calls and may look for some later dated strikes to play for their August 9th earnings:

IBM reported a strong beat yesterday after the close but kept their guidance unchanged. The stock is getting hit in the pre-market. If it can hold $128-129 I may look to nibble some later dated strikes for a move back to $140+ in the coming weeks:

Not much to add here on AMLX, The stock actually broke above $22 again in the morning before reversing course with the rest of the market. No plans to close my calls out:

May look to add some ROKU calls for NFLX earnings after the bell. Also still watching CI and UNH for entries along with bio names like SAGE, BIIB, REGN, and VRTX.

Here are the analyst changes of note for today:

First Solar removed from 'Tactical Outperform' list at Evercore ISI
Evercore ISI analyst Sean Morgan is removing First Solar from the firm's "Tactical Outperform" list. Following the Washington Post report that Senator Manchin will not support climate spending it appears that the collective U.S. Government will not act on climate change, though "all is not lost for the future of U.S. solar growth," said Morgan. He has an an In Line rating and $74 price target on First Solar shares
Uber price target lowered to $35 from $55 at BTIG
BTIG analyst Jake Fuller lowered the firm's price target on Uber to $35 from $55 but keeps a Buy rating on the shares ahead of its Q2 results. The analyst states that his data suggests "healthy" sequential trends in both rideshare and delivery for the company, but he also sees growth slowing from a peak in May, reducing his estimates for the second half of this year and 2023 on concerns about a weaker macro backdrop. Uber remains a BTIG Top Pick given the stock's low relative valuation and improving competitive positioning however, Fuller tells investors in a research note

Twitter price target lowered to $43 from $50 at Truist
Truist analyst Youssef Squali lowered the firm's price target on Twitter to $43 from $50 and keeps a Hold rating on the shares as part of a broader research note on Digital Advertising Platforms. The analyst attributes his downward estimate revisions to weakening macro, FX headwinds, Russia/Ukraine war, tough comps and the disruptive nature of Musk's takeover. Squali adds that if Twitter fails to bring the Musk acquisition to completion, he could see the base case for shares trading in the high $20s
Codexis CEO transition 'surprising,' but fundamentals sound, says Stifel
Stifel analyst Daniel Arias called Codexis' announcement that John Nicols will retire as President and CEO effective August 9 "surprising," though he does not believe "there is much to read into here" with the business performing well. While the recent earnings miss was "not ideal," the company is coming off one of its largest products of all-time, has multiple early-stage life science products, and "several shots on goal in biotherapeutics," said Arias, who maintains a Buy rating and $39 price target on Codexis shares

Intel price target lowered to $40 from $42 at Susquehanna
Susquehanna analyst Christopher Rolland lowered the firm's price target on Intel to $40 from $42 and keeps a Neutral rating on the shares. The analyst said he is cautious on the print given deteriorating PC demand, as he now expects worse top-line results and guidance and perhaps gross margins and earnings per share

Pinterest price target lowered to $18 from $21 at Morgan Stanley
Morgan Stanley analyst Brian Nowak lowered the firm's price target on Pinterest to $18 from $21 and keeps an Equal Weight rating on the shares. He is reducing his 2022 and 2023 online ad growth estimates by about 3% and 6%, respectively, telling investors that signs of a weakening macro ad market have continued to grow since his last estimate cut for the group on June 1
Yelp price target lowered to $33 from $34 at Morgan Stanley
Morgan Stanley analyst Brian Nowak lowered the firm's price target on Yelp to $33 from $34 and keeps an Underweight rating on the shares. He is reducing his 2022 and 2023 online ad growth estimates by about 3% and 6%, respectively, telling investors that signs of a weakening macro ad market have continued to grow since his last estimate cut for the group on June 1

And here is what I am watching today: ROKU, NFLX, ISRG, IBM, U, TWLO, SPOT, CUTR, CI, GLD, DUST, GLL, JDST, REGN, SAGE, and IBB.

Let's have a great day!

-JB

JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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