Stocks soared on Tuesday, with S&P rallying 2.76% while the Nasdaq rallied over 3%, reversing Monday's losses and then some. Asia markets closed higher overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open as I write this, the Dollar is higher while Yields, Oil, and Gold are all lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-64/
Markets rallied on Tuesday, as earnings continue to come in at or above expectations - seems the market is talking a collective sigh of relief. We maybe in a recession right now but earnings are showing things are not as bad as feared. Financials and Biotechs led the charge. Will be interesting to see if Tech can take the reins as some of those names start reporting. The S&P and Nasdaq are back over their 50dma's for the first time since April. If those can hold, could bode well for continued upside pending any crazy surprise from the Fed next week. That $390 area on the SPY should provide some support and still think that $400 handle comes soon:
NFLX reported mixed earnings after the close. They beat on their sub growth, but issued lower guidance, although they do expect to be back to sub growth in Q3. The company has turned their focus onto free-cash flow generation and reducing expenses... from growth story to value story. Should be enough to for the stock to hold gains and possible rally to $220+ in the coming days. May look at some spec calls:
Also should bode well fro ROKU which will report earnings a week from tomorrow. If it can hold $90 today think a move over $100 comes this week and maybe $105+ before they report:
I locked some of my ISRG calls yesterday to help cover costs as the stock neared $215. Still think this has a chance to test $220 before earnings tomorrow and will look to close some more of my calls in before they report and ride some calls free into earnings:
U chopped around all session on Tuesday, closing up 1%. Will look to hold my freebie calls for the eventual move over $40:
AMLX tested and failed to hold that $22 handle for the second day in a row. Could say a potential bull flag is setting up. Only a matter of time before this is $25+(and higher):
ABT reported a great Q this morning but the stock is getting hit in the pre-market. Last Q it reversed early losses and rallied... could be dejavu again so will be watching for some potential speculative calls, likely $115 or so:
Still eyeing SAGE, VRTX, TWLO, and SPOT as well.
Here are the analyst changes of note for today:
| Rhythm Pharmaceuticals price target raised to $37 from $25 at Stifel |
| Stifel analyst Dae Gon Ha raised the firm's price target on Rhythm Pharmaceuticals to $37 from $25 and keeps a Buy rating on the shares after speaking with two endocrinologists, one of whom characterized Rhythm's recent hypothalamic obesity, or HO, data as "fantastic." After his talks with the key opinion leaders, Gon Ha is adding HO revenues to his model, risk-adjusted at 50%, which drives his price target increase |
Amazon price target lowered to $150 from $163 at Jefferies |
| Jefferies analyst Brent Thill lowered the firm's price target on Amazon.com to $150 from $163 and keeps a Buy rating on the shares. While he sees Amazon returning to outperformance in the second half as revenue growth accelerates and profit improves, he is cutting his 2022 and 2023 operating income estimates to 20% and 11% below consensus, respectively. A key overhang for the stock has been concern about downside to operating income resulting from tough comps and worsening inflation, but he expects Q3 operating income guidance to be "the last guide-down and a clearing event for improving sentiment," said Thill, who adds that he believes his updated forecasts are now more closely aligned with the buy-side. His sum-of-the-part analysis implies minimal value is being ascribed to core retail, suggesting the stock is already pricing-in headwinds from a recession and inflation |
| EOG Resources assumed with a Buy at MKM Partners |
| MKM Partners analyst Leo Mariani assumed coverage of EOG Resources with a Buy rating and $123 price target as part of a broader research note on Exploration & Production names. While the oil market has been quite tenuous of late, WTI oil prices should stay above $100 as long as the war in Ukraine is ongoing, the analyst tells investors in a research note. The analyst is also positive on the company's "high cash flow yield including special dividends, better production growth vs. peers, and the potential around its emerging U.S. oil plays. |
| ConocoPhillips assumed with a Buy at MKM Partners |
| MKM Partners analyst Leo Mariani assumed coverage of ConocoPhillips with a Buy rating and $110 price target as part of a broader research note on Exploration & Production names. While the oil market has been quite tenuous of late, WTI oil prices should stay above $100 as long as the war in Ukraine is ongoing, the analyst tells investors in a research note. The analyst is also positive on the company's "high returns of capital to shareholders, lower base production declines compared to peers, valuable international asset diversification and strong balance sheet. |
| AmerisourceBergen price target raised to $170 from $160 at Argus |
| Argus analyst David Toung raised the firm's price target on AmerisourceBergen to $170 from $160 and keeps a Buy rating on the shares. The company's Q2 fiscal results were "strong", while its recent acquisition of Alliance Healthcare adds another growth driver, the analyst tells investors in a research note. Toung adds that he is raising his FY22 EPS view on AmerisourceBergen by 15c to $10.95 and his FY23 view by 10c to $11.80 |
| Sunrun price target raised to $52 from $50 at JPMorgan |
| JPMorgan analyst Mark Strouse raised the firm's price target on Sunrun to $52 from $50 and keeps an Overweight rating on the shares. The analyst is "generally positive" on the alternative energy sector heading into the second half of 2022, saying secular trends should continue regardless of the economic cycle. Rising fossil fuel prices and focus on energy security are creating record levels of demand for renewables, despite lingering supply chain headwinds and rising input costs, Strouse tells investors in a research note |
| First Solar price target raised to $73 from $69 at JPMorgan |
| JPMorgan analyst Mark Strouse raised the firm's price target on First Solar to $73 from $69 and keeps a Neutral rating on the shares. The analyst is "generally positive" on the alternative energy sector heading into the second half of 2022, saying secular trends should continue regardless of the economic cycle. Rising fossil fuel prices and focus on energy security are creating record levels of demand for renewables, despite lingering supply chain headwinds and rising input costs, Strouse tells investors in a research note |
And here is what I am watching today: ROKU, NFLX, ABT, UNH, CI, ISRG, IBM, U, TWLO, SPOT, CUTR, GLD, DUST, GLL, JDST, REGN, SAGE, and IBB.
Let's have a great day!
-JB