It was a rough day for stocks on Thursday with the S&P tumbling over 2% and having its worst session in weeks ahead of the CPI data. Asia markets fell overnight while Europe indexes are in the red this morning. U.S. futures are pointing to another rough open, the dollar, Yields, and Oil are higher while Gold is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-39/
Markets found sellers on Thursday with pressure coming in the afternoon - It felt like the market had a bleed and there was no bandage. The much awaited CPI numbers came out this morning and it was higher than expected, meaning the PCE numbers from last month that possibly hinted at topping inflation were pre-mature. Futures tumbled on the data as would be expected. Buy the dip or sell the data? The SPY is under $400 as I write this. Maybe a small relief bounce today over $400? If not, fear next week brings the $380s on the SPY:
I couldn't have picked a worst time to add WYNN calls. Going to be tough to salvage here and not sure I will add anything until the market finds any support, though I do think Travel and names like WYNN and LVS will be some of the first names that soar once the market finds footing:
If there was any silver lining on yesterdays action it is that SAGE and BPT held up relatively well. Hoping SAGE can find bids today and near that $40 handle or I may look to close the last of my calls out and add some July strikes:
Have plenty of time on BPT, and like I have mentioned lately, may look at some $30 calls soon:
Rough day for IBM and ZYME. Still have plenty of time on both of those as well but likely need some catalyst here for ZYME soon.
CVGW is a name I have traded over the years. The past year or so has seen CVGW get pummeled as the company had serious execution and management issues. They just posted a great Q and yesterday announced a new CFO coming over from Tyson Foods. Could be a name that finds a bid in the coming days so may look at some June 40s or even July $45 calls:
DOCU posted a mixed Q after the close yesterday and the stock is getting punished. The numbers were actually not that bad but not good enough in the current environment. The CEO had bought share in the $60s in March so could be a floor here. May look to play for a bounce into next week if it can hold $65 or so.
Here are the analyst changes of note for today:
| Stitch Fix price target lowered to $7 from $9 at Wedbush |
| Wedbush analyst Tom Nikic lowered the firm's price target on Stitch Fix to $7 from $9 and keeps a Neutral rating on the shares, following the company's "tough" Q3 earnings report. The analyst felt the key negative was that Stitch Fix is struggling with conversion, driving declines in net active users, but noted that Freestyle continues to grow, mitigating some declines. Nikic also noted that cost savings measures were already underway, with an announced layoff of 4% of the workforce. Nikic feels that the company's decision to "increase emphasis on the Freestyle offering makes sense, as it has a bigger TAM and better order economics," but feels the transition is going to be "far more challenging than expected, and it's tough to get comfortable with the trajectory of the business right now. |
| MongoDB price target raised to $350 from $310 at Needham |
| Needham analyst Mike Cikos raised the firm's price target on MongoDB to $350 from $310 and keeps a Buy rating on the shares after attending MongoDB World this week. The company's slate of innovations places MongoDB in better position to win new workloads by making it easier to migrate, addressing more types of workloads, and supporting new application architectures, the analyst tells investors in a research note. Cikos adds that MongoDB has now been downloaded over 265M times and the rates of monthly downloads are accelerating |
| Illumina CFO departure not cause for concern, says Canaccord |
| Canaccord analyst Kyle Mikson said the CFO departure from Illumina should not be a cause for concern as the company noted that it has not changed its previously stated guidance and timelines/performance of the GRAIL regulatory process or new products and he said any weakness should be bought. Mikson reiterated his Buy rating and $520 price target on Illumina shares |
| DocuSign price target lowered to $70 from $85 at UBS |
| UBS analyst Karl Keirstead lowered the firm's price target on DocuSign to $70 from $85 and keeps a Neutral rating on the shares. The analyst recommends that investors remain on the sidelines after the company reported its third consecutive miss on billings |
| Credit Suisse lowering EPS estimates for Target Corporation again |
| Credit Suisse analyst Robert Moskow maintained an Outperform rating and $180 price target on Target Corporation, but lowered its FY22 EPS estimates to $8.59 from $13.56 following the company's issued warning that further lowered its FY22 profit expectations as it "focuses on getting through the unwanted inventory pile-up resulting from consumers shifting their spending from discretionary products to essentials," which follows the already lowered profit guidance issued three weeks ago with the company's Q1 results |
And here is what I am watching : CVGW, DOCU, U, LOVE, BPT, ROKU, SPOT, WYNN, TREE, TZA, MED, HSKA, and GOOGL.
Let's have a great day!
-JB