Stocks closed lower on Wednesday, with the S&P losing 1.08% after opening the day solidly in the green. Asia markets closed mixed overnight while Europe stocks are in the red this morning. U.S. futures are pointing to a lower open as I write this, the Dollar and Gold are also lower while Oil and Yields are higher.
Markets made it 8 straight sessions of rangebound action, with the SPY chopping between $410 and $417 seemingly every day. One would think this range will be broken soon - whether it has been consolidation for the next leg higher or where when buyers disappear is the question. Still feel like that $420 handle is coming first though right now the SPY is under $410 in the pre-market. If that does not hold then that $400 handle maybe next. We get CPI data tomorrow and will be one of the most hyped data reads in recent memory, so hold onto your pants at 8:30am tomorrow:
WYNN looks to have formed a double bottom and has been bouncing nicely. Think this can trade into the mid-high $70s in the next few days so I went and added some calls for next week. Will use the $67.50 area as a possible stop and revisit if the market pulls today:
I took small profits on my DOCU calls yesterday as the stock digested the MSFT expanded partnership. They will report earnings after the close and I did not want to risk the position with a binary event coming. I will wait post earnings to possibly revisit though I think DOCU will post a strong Q:
SAGE setting up like a bull-flag and potential move to $43 or so in the next week or two. Still find it mind-boggling BIIB has not bought them out yet:
Will continue to hold my freebie calls:
LOVE reported great earnings yesterday morning but was punished by the market. The company is growing at a 25%+ clip and is a great growth story in what is typically a boring sector. May look to add some July strikes today for a move into the $40s in the coming weeks:
IBM closed in the red for the second session in a row. Would want to see that $140 handle hold today:
The U choo-choo train closed up for the third day in a row. Don't want to chase, though if It holds green at some point today, I may use the lower premiums to grab some lotto calls into tomorrow and possibly some strikes into next week for the eventual $50 break:
As I said yesterday, not going to get overly aggressive and will use TZA calls as a hedge, especially if SPY fails to hold $410.
Here are the analyst changes of note for today:
| Jefferies says buy Constellation as Mexican beer import trends remain strong |
| Jefferies analyst Kevin Grundy noted that recently-released import data from the Beer Institute showed volumes for Mexican beer imports in the U.S. grew +23.8% year-over-year in March and 10.6% year-over-year in April, which he said is supportive of his positive view on Constellation Brands. The analyst, who identifies Constellation as his favored large-cap growth idea, keeps a Buy rating and $305 price target on the shares |
| Five Below price target lowered to $190 from $230 at Craig-Hallum |
| Craig-Hallum analyst Jeremy Hamblin lowered the firm's price target on Five Below to $190 from $230 and keeps a Buy rating on the shares. Hamblin believes the Q1 miss and guide down were slightly more than buyside expectations with stacked sales trends slowing in April and May as the company underestimated stimulus benefit and lapping the massive "Poppers" trend from last year, the analyst tells investors in a research note. FY22 is still on track to produce operating margins slightly better than the FY17-FY19 average of 12.1% and the growth thesis remains firmly intact, Hamblin contends |
| Roblox price target raised to $30 from $24 at Jefferies |
| Jefferies analyst Andrew Uerkwitz raised the firm's price target on Roblox to $30 from $24 and keeps a Hold rating on the shares. April may be a bottom in net bookings declines, but "May isn't showing much improvement" and he continues to expect further estimate revisions, said Uerkwitz, who notes that he is moving his own estimates for Q2 through Q4 "further below" the Street consensus. While he continues to believe Street estimates "need to continue to correct lower," Uerkwitz raised his target to account for "improving (albeit volatile) group multiples," he tells investors |
Scotiabank starts Twilio at Outperform with $215 price target |
| Scotiabank analyst Nick Altmann initiated coverage of Twilio with an Outperform rating and $215 price target. The Twilio story "may not be as clean as it has been in the past," but it remains one the fastest-growing companies of its size on an organic basis, Altmann tells investors. Twilio continues taking share as the market leader in Communications Platform as a Service, or CPaaS, which Altmann calls "the fastest-growing end-market in software." It also holds "the most compelling position in a young but promising CDP market that has synergies back into its core CPaaS business," argues Altmann |
| Scotiabank starts 'must-own' HubSpot at Outperform with $550 price target |
| Scotiabank analyst Nick Altmann initiated coverage of HubSpot with an Outperform rating and $550 price target. The "must-own software asset" had two game-changing years in 2020 and 2021 and while HubSpot benefited from front-office tailwinds as companies shifted to digital, he thinks the company is "firing on all cylinders," executing on its product and go-to-market strategy better than ever, and is "poised to cross the chasm to become a much larger software company," Altmann tells investors |
| Devon Energy price target raised to $93 from $88 at Stifel |
| Stifel analyst Derrick Whitfield raised the firm's price target on Devon Energy to $93 from $88 and keeps a Buy rating on the shares after the company announced the acquisition of RimRock Oil and Gas for $865M in cash. Devon's board intends to increase the base dividend by 13% following the closing of the deal, which is expected to close in Q3, noted Whitfield, who is positive on the deal and views it as accretive on key metrics |
And here is what I am watching today: LOVE, U, DOCU, BPT, ROKU, SPOT, WYNN, TREE, TZA, MED, HSKA, and GOOGL.
Let's have a great day!
-JB