Futures are pointing to a higher open this morning, after yesterday session that saw the S&P close down .13% although well off the lows. Asia markets closed higher overnight while Europe stocks are in the green this morning. The US 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-22/
The roller-coaster ride called the stock market is still running. Yesterday saw growth names squeeze right after the open, only to fade for the rest of the day. By 3pm the S&P was a fraction from bear market territory before embarking on another nasty squeeze to close slightly in the red. Futures are pointing higher this morning, so hopefully we can have a green session today so we don't have to deal with all the bear market headlines over the weekend. That $400 level would be a nice spot to close above, though will need a big move today:
Gold sold off yesterday and is lower again this morning. JDST rallied up near $13 yesterday and I was able to close all my calls out for 200% and 400%; They expired today so did not want to lose the profit and risk any possible reversal which wolud just kill the premiums. Still think Gold is heading to that $1175 level, especially now that it is under the 200dma. May look to add some DUST, JDST, and possible GLL calls today:
JDST:
IBM is showing some signs after breaking its earnings gap. Another strong session today and $140s could come next week:
It is only a matter of time before we have some nasty relief bounces that hold for more than a few hours. We have seen some signs this week and last week. ROKU, SQ, and TEAM likely the names I would play some speculative calls if they show bids at the open today.
ROKU to $95:
TEAM to $180+
And SQ to $85+:
May try a few speculative lottos in other names as well today like MDB, ZS, and PANW.
Here are the analyst changes of note for today:
| Six Flags' post-earnings reaction 'perplexing,' says Stifel |
| Stifel analyst Steven Wieczynski lowered the firm's price target on Six Flags to $52 from $64 despite raising his 2022-2024 EBITDA estimates exiting the company's Q1 report and keeps a Buy rating on the shares. He calls the stock reaction following the report "perplexing," as he thinks the new CEO's approach to seems to be working and "should ultimately bring a higher yielding customer through the park." Wieczynski, who is encouraged by the initial results of the company's change in corporate strategy to focus more on the customer experience and charging more for that experience, thinks shares are "embedding an almost worst case scenario" and views weakness in the stock as "currently way overdone. |
| JPMorgan price target lowered to $125 from $141 at Jefferies |
| Jefferies analyst Ken Usdin lowered the firm's price target on JPMorgan to $125 from $141 following a model update that lowered his 2023 EPS estimate to $12.50 from $13.20 and keeps a Hold rating on the shares ahead of the company's investor day coming up on May 23. At the event, Usdin expects a reiteration of the 17% medium-term ROTCE and 13% CET1 targets, noting that he thinks its medium-term targets "look achievable, but likely beyond '23." In addition, growth rate comparisons will be tough for 2022 following a "strong" 2021, Usdin added |
| Twitter deal on hold by Tesla's Musk, says Wedbush |
| Wedbush analyst Daniel Ives made no change to his Outperform rating or $1,400 price target for Tesla (TSLA) shares following a "bizarre" tweet from Elon Musk saying the Twitter (TWTR) deal is on hold temporarily pending details supporting calculation that spam/fake accounts represent less than 5% of users. The Street will view this deal as likely falling apart, Musk negotiating for a lower deal price, or Musk walking away from the deal, Ives tells investors in a research note. With the nature of Tesla shares being used as leverage for Musk in the deal, the massive selloff seen in Tesla and the overhang created by this deal has turned into a life of its own, Ives conte |
| JPMorgan lays out three major investor concerns on Netflix |
| Netflix shares have lost half their value since the company reported Q1 earnings and sentiment remains quite cautious, Anmuth tells investors in a research note. Beyond the broader market backdrop, the analyst believes three major concerns are on the minds of investors: the lack of clarity on timing and the range of outcomes around account sharing efforts and advertising, the lack of visibility on second half of 2022 subscribers and limited catalysts near-term, and a lack of understanding of how Netflix "flipped from interpreting recent soft subscriber numbers as pandemic hangover to a function of competition and higher penetration due to account sharing." The shares have traded down to levels now suggesting 14.5 times estimated 2023 GAAP earnings "as some seem to forget this is a 20% GAAP operating margin business that should still have positive FCF this year," writes Anmuth. He keeps a Neutral rating on Netflix with a $300 price target |
| Nike price target lowered to $139 from $163 at Wedbush |
| Wedbush analyst Tom Nikic lowered the firm's price target on Nike to $139 from $163 and keeps an Outperform rating on the shares following the firm's monthly sneaker-release tracker. The impact to Nike's 4Q22 and FY23 was a headwind of 2c and ~$30c, respectively, Nikic tells investors in a research note. While the analyst previously forecasted flat constant-FX revenues for China in Q4, he now projects a -25% decline |
Evercore reiterates Outperform rating, $90 target on Micron after analyst day |
| Evercore ISI analyst C.J. Muse reiterates his Outperform rating and $90 price target on Micron shares following the company's analyst day meeting. While he "can't say there were too many surprises," the event's biggest takeaways were that the memory industry is outgrowing the overall semiconductor industry, the players here are "acting in a highly disciplined manner" and Micron is executing very well, Muse said. The analyst, who argues that a lot of bad news is already embedded in Micron shares, believes a share price in the high $60's "represents a steal" for any one with duration, he added |
And here is what I am watching today: GLL, JDST, DUST, TEAM, ROKU, SQ, CMG, and IBB.
Let's have a great day!
-JB