Markets finally found some buyers yesterday, with the S&P closing up over 1% while the Nasdaq ended the day up 1.77%. The Nasdaq is now green on the week while the S&P is down .30% though looks to erase the last of that deficit today. Asia stocks closed mostly higher overnight while Europe indexes are in the green this morning. U.S. future are pointing to another rally, the Dollar, Yields, and Oil are lower while Gold is higher.
And this is what UPB is reading this morning:https://www.optionmillionaires.com/friday-morning-reads-185/
Stocks finally found some footing yesterday as they held the morning gains and melted higher into the afternoon. Almost the exact pattern from last week where markets tumbled for the first three sessions before rallying into the weekend. The Nasdaq closed back above the 50dma yesterday and bodes well if it can hold that heading into the weekend:
WIX gapped higher at the open yesterday, broke into the $240s, then tested the $250s late in the day before closing at $247.57. I was able to close some of my calls out for 100% and 300% and held the rest into today for the possible move into the mid-high $250s. Of course hindsight is 20/20 but thought a 10% move was coming...
From Wednesday's Watchlist:
WOW finally found some buyers over the $16 handle, spiking hard in the morning. It held the gains and closed up over 4%. Could see $17s today and work on all-time highs next week. I was looking to add more calls but the spike elevated the premiums. Will keep watching for some more decently priced later dated strikes:
CMG gapped higher at the open but couldn't hold the $1350s and closed at $1341. The call premiums were so expensive at the open so I passed on an entry. Will be watching today for some possible lotto calls as I think if it can break back into the $1350s that $1370+ will come quick:
Other lotto names I will be watching today:
SPOT:
OLED:
BLK:
TREE:
Here are the analyst changes of note for today:
| Airbnb price target lowered to $125 from $160 at Morgan Stanley | |
| Morgan Stanley analyst Brian Nowak lowered the firm's price target on Airbnb to $125 from $160 and keeps an Equal Weight rating on the shares. While he has raised his FY21 and FY22 EBITDA estimates for stronger Q1 results that he believes "speak to the accelerating shift toward alternative accommodations," his lowered price target reflects peer multiple compression, Nowak noted. He keeps an Equal Weight rating due to valuation, but would see any material pullback as a buying opportunity, the analyst added | |
| JD.com price target lowered to $80 from $90 at Susquehanna | |
| Susquehanna analyst Shyam Patil lowered the firm's price target on JD.com to $80 from $90 and keeps a Neutral rating on the shares. The analyst continues to like the company's positioning in the China e-commerce market and believes its hybrid 1P/3P model is attractive. He sees potential for longer-term upside from its advertising and logistics scaling, and likes the company's ability to successfully incubate new businesses. However, at current levels, he believes the risk/reward is balanced. | |
| Netflix U.S. survey results show 'some softness,' says Evercore ISI | |
| Evercore ISI analyst Mark Mahaney said his 1,700-respondent U.S. survey on Netflix showed "some softness," noting that 55% of subscribers said they were "Extremely/Very Satisfied," which he said is a setback from the low-to-high 60% range seen over the last several years. While he doubts U.S. penetration has plateaued, Mahaney thinks "gains from here will be grinding," he said. However, in Japan, his survey work points to an "inflection in penetration" and that satisfaction has "surged," said Mahaney. Quarter-to-date SensorTower app downloads data as of May 16 lead him to think management's global net adds projections "appear reasonable," added Mahaney, who reiterates his Outperform rating and $655 price target on Netflix shares | |
| Children's Place price target raised to $92 from $82 at B. Riley | |
| B. Riley analyst Susan Anderson raised the firm's price target on Children's Place to $92 from $82 and reiterates a Neutral rating on the shares following the "record" Q1. The analyst believes the company will benefit from a reduction in store costs and shifting revenue to a higher margin e-commerce channel. However, she remains on the sidelines "until there is additional clarity on the remainder of the year. | |
| UnitedHealth price target raised to $480 from $450 at Truist | |
| Truist analyst David MacDonald raised the firm's price target on UnitedHealth to $480 from $450 and keeps a Buy rating on the shares. The analyst is citing his "upbeat" meetings with the company's management which highlighted its "highly complementary" and "synergistic" growth platforms, along with a "meaningful" ongoing opportunity around value-based care and "robust" IT capabilities. UnitedHealth's "ample" free cash flows also allow for ongoing investment and continued capital deployment to further differentiate the offering, MacDonald tells investors in a research note | |
| Children's Place price target raised to $120 from $93 at Monness Crespi | |
| Monness Crespi analyst Jim Chartier raised the firm's price target on Children's Place to $120 from $93 and keeps a Buy rating on the shares. At a time when other retailers face challenging comparisons and waning stimulus, Children's Place will lap depressed sales while the increased child tax credit will provide ongoing stimulus for its customers, said Chartier. More than 2,000 children's apparel stores have closed over the last three years, during which time Children's Place has "made meaningful structural improvements to its business," added the analyst | |
| DXC Technology price target raised to $40 from $31 at BMO Capital | |
| BMO Capital analyst Keith Bachman raised the firm's price target on DXC Technology to $40 from $31 and keeps a Market Perform rating on the shares. The company's new management is taking "appropriate, positive" steps to nurture the top line and re-focus the business in "winnable" areas, the analyst tells investors in a research note. Bachman warns however that DXC Technology faces a risk in generating sufficient free cash flows to move the stock higher from its current levels, preferring a neutral stance | |
| Honeywell growth opportunities underappreciated, says JPMorgan's Tusa | |
| JPMorgan analyst Stephen Tusa believes Honeywell's presentation on the future of urban mobility in the $11.5B aerospace segment highlights another one of the company's underappreciated growth opportunities. Investors underappreciate the "many" growth initiatives Honeywell has embedded in its portfolio "that are on the cusp of bearing fruit in the middle of key early stage secular trends," Tusa tells investors in a research note. The stock remains the analyst's top pick | |
And this is what I am watching today: CMG, WOW, SPOT, TREE, OLED, BLK, TWLO, and EDIT.
Let's have a GREAT DAY!
-JB