Market soared on Thursday, despite MSFT lowering their guidance in the pre-market, with the S&P adding 1.8% while the Nasdaq rallied 2.69%. Asia stocks closed mostly higher overnight with some exchanges closed for holiday while Europe stocks are flat this morning. U.S. futures are pointing to a lower ope, the Dollar and Yields are higher while Oil and Gold are lower ahead of the May jobs report.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-35/
It was an interesting session on Thursday, with stocks fading at the open on Microsofts lowered guidance, only to find a bid and rally for the rest of the day to close at highs. The rally was enough to put the S&P and Nasdaq back into the green for the week. If stocks can have a decent session today, could be back to back week of gains and maybe a hint of optimism going into the weekend... all this despite continued warnings of a recession from some leaders of the biggest companies on the planet.. ie. JPM, TSLA, BLK. We have two more weeks until the next Fed meeting and the expected .50% rate hike. A good sign if the SPY holds $410 today with $420 being the next point of resistance on a rally:
SAGE reversed early morning losses to close up 7%. I was able to exit some of my calls out to cover costs at 100% - this is not the type of market anything is safe day-to-day,. Will look to hold the rest for a possible move over $40 in the next week or two. If you missed my tweets, some more thoughts I why this should be trading higher:
BMY announced they were acquiring TPTX for $76 or $4.1 bil in an all-cash transaction. Another Bio M&A deal that should hopefully start to put a floor in the space, especially considering all these names trading at/near/below cash levels... ie. ZYME/SAGE.. ect.
ZYME tested the $7s again. yesterday but failed to hold, Hoping 3rd time is a charm today and be able to get the opportunity to lock some of my calls in to cover costs:
IBM finally breached and closed above that $140 handle after testing the $136s in the morning. It is gapping lower with the market this morning. If it can regain the $140s today think mid-high $140s can come next week:
Some promising signs in names like U, which had a great session yesterday with no true catalyst. Pending any massive sell off today, U should make it three weeks in a row of gains and maybe forming a bottom, even if a temporary one. Think can move into the $50s for so in the coming weeks so may look for some later dated strikes today:
U weekly:
U Daily:
TREE received an outperform rating this morning at William Blair. Could start making a move back to the $100s in the coming weeks. Only monthly strikes available but may look at some calls to play for that move:
EXPE chart still looks great and a move to $150+ looks possible. Have my eyes on that as well today:
Also still watching MED, HSKA, GOOG, ROKU, and SPOT.
Here are the analyst changes of note for today:
Okta price target raised to $140 from $125 at DA Davidson |
| DA Davidson analyst Rudy Kessinger raised the firm's price target on Okta to $140 from $125 and keeps a Buy rating on the shares. The analyst cites the company's "strong" Q1 earnings beat while noting that he had previously anticipated Okta's security breach to "only minimally impact near-term results". Okta's best-of-breed products will go a long way in helping them repair their reputation, Kessinger tells investors in a research note |
| Etsy price target lowered to $90 from $180 at UBS |
| UBS analyst Kunal Madhukar lowered the firm's price target on Etsy to $90 from $180 and keeps a Neutral rating on the shares. Based on the data from UBS Evidence Lab, the company's growth deceleration continues despite the easier comps, the analyst tells investors in a research note |
RH price target lowered to $450 from $550 at Cowen |
| Cowen analyst Max Rakhlenko lowered the firm's price target on RH to $450 from $550 and keeps an Outperform rating on the shares. The analyst said its Q1 results were better than feared but its medium-term outlook is uncertain. He said he is encouraged by the launch of Contemporary sourcebook, noted RH England is on track and likes its upsized 2.45bn repurchase authorization |
| LendingTree assumed with an Outperform at William Blair |
| William Blair analyst Cristopher Kennedy assumed coverage of LendingTree with an Outperform rating and no price target. The stock's 51% decline year-to-date largely reflects the macro pressures tied to the mortgage market and creates an attractive risk/reward, Kennedy tells investors in a research note. Management moderated full-year guidance following the March quarter results, and Street EBITDA estimates for 2022 and 2023 have been reduced by about 17% since the beginning of the year, the analyst points out. He says LendingTree has evolved into a more diversified business that helps connect consumers with financial service providers |
| Roblox price target lowered to $52 from $59 at Citi |
| Citi analyst Jason Bazinet lowered the firm's price target on Roblox to $52 from $59 and keeps a Buy rating on the shares post the Q1 results. The company reported Q1 bookings, revenue, and adjusted EBITDA below consensus estimates but expects to see year-over-year booking growth rates improve as it progresses through the year, Bazinet tells investors in a research note. The analyst updated his model to reflect Roblox's performance to date and his latest outlook |
And here is what I am watching today: TREE, EXPE, GOOGL, U, MED, HSKA, GOOG, ROKU, and SPOT.
Let's have a great day!
-JB