Stocks closed higher for a second day in a row with the S&P adding .59% on Wednesday while the Nasdaq soared over 1.5%. Asia stocks closed mixed overnight while Europe indexes are mostly lower as I write this. U.S. futures are pointing to a lower open, Yields are higher while Oil, Gold, and Yields are lower.
It was another strong session for stocks, especially ones that have been beaten up the most during this bear market. Old momentum names and high short names all rallied hard again for the second day in a row. Relief rally before the next down leg or is the bottom in? Think there will be plenty of more chop in the coming weeks but do think stocks can hold their own pending any crazy black swan event. Certainly not going to be loading the boat on calls just yet but will continue to look at some names for upside moves and try to cover costs on the way up to mitigate risk. The SPY closed solidly over that $390 handle. Would really like to see a $400 test before the weekend:
ISRG rallied over 2% yesterday, breaking into the $220s before closing at $219.22. I was able to close more of my calls out for 100% and now have covered all my costs. If it rallies up near $230 I may take a few more off for profits, otherwise will ride them into earnings as a high risk/high reward trade. Think $240s can come on a strong beat and raise:
U soared over 13% yesterday and has now closed higher for 4 sessions in a row. I was able to close some more calls out for 300% and 600% and held the rest for a possible move to $44 or so in the coming days. Will use the $40 handle as a spot I would look to close the last in:
AMLX also had a strong session, closing up 7.29% and over that $22 handle. The chart is setting up nicely and think $25+ will be coming very soon. Will look to close some of my calls out for 100% to cover costs when I get the chance, and hold the rest:
I was eyeing ROKU and NFLX calls at the open yesterday but just couldn't pull the trigger. Will be watching again today. Think NFLX can break into the $220s and ROKU heads over $100 and higher into next weeks report:
INMD broke into multi-month highs yesterday, Should really pick up steam once it breaks into the $30s. Still watching CUTR as another play on their updated guidance though spreads/liquidity tough:
CUTR:
ABT chopped around in the red yesterday after their strong earnings report. Think this can head into the $112+ area in the coming days so will be watching for an entry today.
Still also watching SAGE, VRTX, TWLO, and SPOT.
Here are the analyst changes of note for today:
| MercadoLibre price target lowered to $800 from $850 at Jefferies |
| Jefferies analyst John Colantuoni lowered the firm's price target on MercadoLibre to $800 from $850 and keeps a Hold rating on the shares. He remains concerned about pressure to fintech revenue and EBITDA driven by elevated rates and worsening credit delinquencies and is reducing his FY22/FY23 revenue and EBITDA estimates on foreign exchange headwinds ahead of MercadoLibre's earnings report |
| Alphabet 2022 estimates may need to come down, says Deutsche Bank |
| Deutsche Bank analyst Benjamin Black lowered the firm's price target on Alphabet to $135 from $2,900 and keeps a Buy rating on the shares following the stock split. The resurgence in travel advertising demand is supporting overall growth within Alphabet's Services unit, but the combination of travel budget normalization and softer e-commerce trends could result in downward seocnd half of 2022 estimate revisions, Black tells investors in a research note. That said, the analyst's recent intra-quarter ad checks highlight "relative stability" in demand for Search |
| eBay price target lowered to $50 from $60 at Deutsche Bank |
| Deutsche Bank analyst Lee Horowitz lowered the firm's price target on eBay to $50 from $60 and keeps a Buy rating on the shares. With eBay already aggressively cutting 2022 revenue guidance to the tune of 6% coming out of Q1, and sequential growth estimates that are generally in line with typical seasonality, the company's fiscal 2022 estimates have already captured much of the incremental consumer headwinds that have been reverberating through the economy in recent months, Horowitz tells investors in a research note. That said, as he looks out to 2023, Horowitz says weaker consumer demand will likely prolong eBay's timeline to return to sustainable mid-single-digit volume growth |
| Amazon.com price target lowered to $155 from $174 at Deutsche Bank |
| Deutsche Bank analyst Lee Horowitz lowered the firm's price target on Amazon.com to $155 from $174 and keeps a Buy rating on the shares. Amazon e-commerce demand has held up relatively well year-to-date, but the company "is most certainly not immune" to recessionary concerns, Horowitz tells investors in a research note. As such, the analyst tempered his revenue outlook beyond the Q2 and into 2023. He believes Amazon's operating income guidance is likely to come in below the Street and he models $3B, 31% below the street, closer to what he believes are the buy-side bogeys. Horowitz thinks these could be seen as the last cut for e-commerce, and expects sentiment for Amazon to shift more positively and for shares to outperform |
| Abiomed price target lowered to $355 from $410 at Deutsche Bank |
| Deutsche Bank analyst Pito Chickering lowered the firm's price target on Abiomed to $355 from $410 and keeps a Buy rating on the shares. The analyst says Impella "continues to break-out." Deutsche sales data indicate Abiomed's Q1 revenues are tracking 2% higher sequentially and 21% year-over-year, Chickering tells investors in a research note |
| outhern Company price target raised to $80 from $76 at Guggenheim |
| Guggenheim analyst Shahriar Pourreza raised the firm's price target on Southern Company to $80 from $76 and keeps a Buy rating on the shares after having recently met with all five Georgia Commissioners and Georgia Power executives. Pourreza cites a belief that "investors as a whole are finally starting to think beyond Vogtle" and a view that Southern has "one of the strongest regulatory backdrops in the country." The debate around Southern is "fast becoming its future rather than its present," added the analyst |
And here is what I am watching today: NFLX, ROKU, ISRG, IBM, CUTR, POOL, SAGE, VRTX, TWLO, ABT, and SPOT.
Let's have a great day!
-JB