Markets soared on Wednesday, with the S&P adding 2.6% as the Fed raised rates while Powell also opened the door to a slow down in tightening. Asia markets closed mostly higher overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a lower open, Yields are in the red while Oil, Gold, and the Dollar are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-67/
Markets rallied on Wednesday with the Nasdaq closing up over 4% for its best day in 2 years as Powell hinted at possibly slowing down the pace of rate hikes... the most dovish comments in months. The last 4 Fed days saw massive rallies in stocks followed by a red session on the following day. Hopefully that trend can be broken today and stocks can find some support. This morning the first read on 2Q GDP came in at negative .9%. Until a week ago we would technically be in a recession. Will be interesting to see the spin this weekend. The SPY finally broke and closed above $400. Would want to see that hold today and then maybe $410 or so next week:
AMLX continued its rally from Tuesday, closing up another 9% and right at the $25 handle. Think $30+ is coming in the next few weeks. Still holding my October strikes which should start seeing premium build over $25:
CI reversed a morning test of $270 to close nearly flat. Will be quick to close the last of my calls out on weakness today but do think this can head to $280+ into tomorrow:
ROKU closed up over 8%, but not enough to do much for my speculative calls heading into earnings today. Not going to add anything here but do think there is a possible surprise element here. Any beat and raise and the stock is $110+:
INMD reported a string beat and raise this morning and the stock is over $30 in the pre-market. Hoping this is not a sell the news event. The earnings should put a bid in shares but if sellers come in, will look to close the last of my August calls on a break of $29:
CMG and SPOT were the ones that got away. CMG broke over $1500 and tested $1530 before pulling back. The $1500 calls I was talking about on my rant were $1 at the time, less thank 24 hours later they hit over $50. Not going to cry over spilled, but just shows the possible reward when playing for an outsized move into earnings. Will keep watching CMG and SPOT for call opportunities.
WING reported surprising earnings this morning and cited possible wing deflation. The stock is rallying in the pre-market. May look at some speculative calls at the open for a move to $120+ in the coming days:
We have AAPL and AMZN earnings after the close. Anything positive out of these two and I think we can see a nice end to the week.
Here are the analyst changes of note for today:
| Visa price target lowered to $260 from $290 at Susquehanna |
| Susquehanna analyst James Friedman lowered the firm's price target on Visa to $260 from $290 and keeps a Positive rating on the shares. The analyst said he is raising 2022 growth rate, but lowering his price targe due to peer group compression and macro uncertainty |
| Meta Platforms price target lowered to $240 from $280 at Evercore ISI |
| Evercore ISI analyst Mark Mahaney lowered the firm's price target on Meta Platforms (META) to $240 from $280 and keeps an Outperform rating on the shares. Fundamentally, Q2 trends were mixed, but the Q3 revenue guidance range was 7% below the Street at the high end as the company cited macro-driven advertising softness rising throughout Q2 across all verticals and formats and continuing into Q3, Mahaney said. Meta is "probably a classic Dislocated High Quality stock," said Mahaney, who believes Meta will work through the macro challenges "as well as any other major ad platform" except Google (GOOGL). Meta's AI-driven investments, along with its massive reach and frequency, will allow it to continue to improve its value proposition to advertisers, the analyst added |
| Lam Research price target lowered to $550 from $575 at DA Davidson |
| DA Davidson analyst Thomas Diffely lowered the firm's price target on Lam Research to $550 from $575 and keeps a Neutral rating on the shares. The company posted a beat-and-raise Q4 results amid robust demand and improved operational execution, but the management also lowered its outlook for WFE spending to be in the low to mid $90B range - lower than initial expectations of $100B - due to ongoing supply constraints, the analyst tells investors in a research note. The risk-reward on Lam Research shares looks balanced, Diffely adds |
| Align Technology price target lowered to $285 from $310 at Evercore ISI |
| Evercore ISI analyst Elizabeth Anderson lowered the firm's price target on Align Technology to $285 from $310 and keeps an Outperform rating on the shares, calling the Q2 report "the best bad print we could have had" after the buyside had become increasingly negative into the print. She is now modeling about 1% organic revenue growth for FY22, 7% for FY23, which is down from 11%, and 14% for FY24 and given this revenue outlook she has brought margin expectations down to the low 22% range, Anderson tells investors |
And here is what I am watching today: ROKU, ALGN, WING, SPOT. CMG, BIIB, CUTR, TWLO, DUST, JDST, GLL, SAGE, VRTX, and TZA.
Let's have a great day!
-JB