Markets rallied for the third session in a row with the S&P adding 1.2% on Thursday while the Nasdaq added 1.3%. Asia stocks closed mostly higher overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar is higher while Yields, Oil, and Gold are all lower.
And this is what UPB is reading this morning: Friday Morning Reads
Stocks churned for the first few hours on Thursday before finding a bid and hitting highs into the close. It was the third session of over 1% gains for the S&P and it is now up 5% on the week while the Nasdaq is up over 6%. A nice historical look on when that happens:
The S&P 500 is up more than >1% 3 consecutive days.
Going back 20 yrs, this has happened 10 other times.
The future returns are extremely strong, up a year later every time and higher nearly 25%.
Moves like we've seen this wk aren't the end of bull moves, but likely the start. pic.twitter.com/uW1HYGLJKD
— Ryan Detrick, CMT (@RyanDetrick) March 18, 2022
This morning futures are pointing to a lower open as worries over an escalation in the war in Ukraine weigh. Would be nice to see a close over the 50dma on the SPY into the weekend($442.69) but will be tough. Considering the SPY was testing $413 early Tuesday morning, some consolidation is not unexpected:
I finally re-entered AVAV calls at the open yesterday as the stock continues to be a great way to play higher defense spending and the AVAV switchblade drones are getting more attention. Would not be surprised to see this trade over $100 next week as FOMO kicks in. I was able to lock most of my calls in for 400% and will look to close the rest after the open and look to add some April strikes:
LUNA closed up nicely yesterday and right at the resistance of $7.75. I added some May strikes to my April calls. Only a matter of time before this clears $8 and heads to the $10 handle:
AXGN also had a great session yesterday closing up over 11% They published an ESG report... not sure that was the catalyst for the move. Either way that $9.60 level looks like strong resistance, If it can get thru there in the next few sessions $12+ should come next:
LRCX is on watch today for a possible lotto with $C adding it to their US Focus List with a $750 PT. Eyeing $540 or $545 weeklies:
DKNG and DXCM continued their rallies yesterday. Still eyeing both for some potential calls, along with TNDM and SSTK.
Here are the analyst changes of note for today:
| 2022 could be inflection year for Ambarella advanced ADAS wins, says Jefferies | |
| After having hosted Ambarella's VP of Marketing and Business Development for virtual demos and investor meetings, Jefferies analyst David Kelley said shipment patterns and the Computer Vision, or CV, outlook appear intact although near-term headwinds tied to supply constraints may weigh on sales. The company's CV products have received positive feedback from customers and he believes 2022 could prove an inflection year for advanced ADAS wins, said the analyst, who has a Buy rating and $160 price target on Ambarella shares | |
| Darden price target lowered to $175 from $185 at Oppenheimer | |
| Oppenheimer analyst Brian Bittner lowered the firm's price target on Darden to $175 from $185 and keeps an Outperform rating on the shares. Darden shares have underperformed in March, and Bittner believes this pullback is partially driven by reduced expectations into the Q3 as investors properly bake in Omicron-related headwinds, the analyst says in a research note. Bittner believes a headline EPS miss is well-understood, and is a buyer owing to Darden's best-in-class margin visibility, unique SSS catalysts and accelerating unit growth. | |
| Accenture price target lowered to $385 from $460 at BMO Capital | |
| BMO Capital analyst Keith Bachman lowered the firm's price target on Accenture to $385 from $460 and keeps a Market Perform rating on the shares after its Q2 earnings. The company's results were "broadly very strong" but its margins were a touch lower than expectations, even though the timing of wage hikes versus higher billing rates in new contracts is causing a "likely temporary" pressure, the analyst tells investors in a research note. Given Accenture's leadership and required-client transformations over multiple years, the company should be able to maintain close to double-digit-reported growth for the next several years, Bachman adds | |
| FedEx price target lowered to $277 from $314 at Wells Fargo | |
| Wells Fargo analyst Allison Poliniak-Cusic lowered the firm's price target on FedEx to $277 from $314 and keeps an Overweight rating on the shares following the Q3 results. Poliniak-Cusic believes that shares could come under pressure on Friday given ongoing concerns around FedEx's ability to leverage the current volume and yield environment, the analyst tells investors in a research note | |
And here is what I am watching today: AVAV, DXCM, LRCX, W, LUNA, AXGN, DKNG, ZYME, TREE, SSTK, VRTX, TNDM, and BIIB.
Let's have a great day!
-JB