Markets rallied on Wednesday, having their best session of 2022. The S&P rose 2.6% while the Nasdaq soared 3.6%. Asia stocks closed higher overnight while Europe stocks are in the red this morning, giving back some of the previous days gains. U.S. futures are pointing to a lower open as I write this, the Dollar, Gold, and Oil are higher while Yields is lower.
Futures are pointing to a lower open ahead of inflation data this morning and after Russia/Ukraine talks ended without a cease-fire agreement. Will be interesting to see if the risk on trade from yesterday continues or it was a one session relief bounce and will be sold. The Fed meets next week with a decision on Wednesday - likely a .25% rate hike. Would expect markets to remain volatile and the wild swings to continue - the S&P has averaged over 1 .4% move over the past 20 sessions and the Vix is still over 30.
FSLR tried to breakout in the morning yesterday but couldn't hold the $80 handle, closing at $78.89 as Oil prices fell. Still think the trade into alternative energy names will work so may look to add some strikes into next week for FSLR:
It was a horrible session for CVGW yesterday with folks selling the name after they announced a push back of their earnings date to next week. Doesn't make much sense to me unless folks think there are going to be issues with their numbers. Not going to add anything more into earnings next week but still hopeful for a beat and raise when they report:
SCHN trade higher yesterday, closing right at its 200dma. Will need to start to get going back over that $52 area quickly. A possible bull flag is setting up as well:
I was watching CMG for some calls at the open but spreads were tough and the stock was moving too fast. Sure enough it closesdup over $100 or 8%. Pretty remarkable to see CMG enjoy two 8%+ daily moves this week, one up and one down, with nary a catalyst. Will be on watch again today, especially on a gap down:
Still eyeing a re-entry into AVAV:
And also will be watching PYPL and SQ for bounces on morning gap lower:
SQ:
Here are the analyst changes of note for today:
| Children's Place price target lowered to $60 from $72 at Citi | |
| Citi analyst Paul Lejuez lowered the firm's price target on Children's Place to $60 from $72 and keeps a Neutral rating on the shares following the "mixed" Q4 results. The analyst believes the stock's risk/reward is fairly balanced | |
| Northern Oil and Gas price target raised to $37 from $36 at Piper Sandler | |||
| Piper Sandler analyst Mark Lear raised the firm's price target on Northern Oil and Gas to $37 from $36 and keeps an Overweight rating on the shares. U.S. exploration and production companies have outperformed the broader market year-to-date, but the equities do not reflect the longer term oil and gas supply uncertainty in the wake of the Ukraine invasion, Lear tells investors in a research note. Just as demand is expected to surge in the post-pandemic recovery, the energy markets are contending with supply disruption, says the analyst. He thinks the market is not properly discounting the duration risk of a higher price environment "given dwindling global spare capacity, the inability of shorter cycle production from filling any near-term supply gaps and the longer-term supply uncertainty." | |||
| Oatly Group price target lowered to $10 from $14 at Piper Sandler | |
| Piper Sandler analyst Michael Lavery lowered the firm's price target on Oatly Group to $10 from $14 and keeps an Overweight rating on the shares. The company is focused on prioritizing growth investments over profitability, which will likely lead to continued near-term margin headwinds, Lavery tells investors in a research note. However, the analyst believes Oatly's capacity expansion plans offer sustainable margin expansion over time as it reduces its reliance on co-manufacturers | |
| Lennar price target lowered to $104 from $142 at JPMorgan | |
| JPMorgan analyst Michael Rehaut lowered the firm's price target on Lennar to $104 from $142 and keeps an Overweight rating on the shares. Due to a combination of "several headwinds" to the homebuilding stocks that the analyst expects will persist over the near to medium term, he reduced price targets by 24% on average across his coverage universe and is taking a "less constructive, more selective approach to the sector." In reviewing the stocks' historical performance during both Fed Funds tightening periods as well as rising rate periods for the 10-year Treasury yield, the sector has consistently underperformed during these times, Rehaut tells investors in a research note | |
| Cisco downgraded to Equal Weight from Overweight at Wells Fargo | |
| Wells Fargo analyst Aaron Rakers downgraded Cisco Systems to Equal Weight from Overweight with a $65 price target | |
And here is what I am watching today: SQ, PYPL, CMG, FSLR, AVAV,, MDB, X, AA,, MOS, NTR, and KRNT.
Let's have a great day!
-JB