Markets rallied to start the week, with the S&P adding 1.8%, while the Dow soared nearly 2%. Asia market fell overnight while Europe indexes are also in the red this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are in the red, while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-29/
Stocks gapped higher at the open yesterday, tested lows at 10am, recouped the losses, then chopped around for the rest of the day. After the close SNAP lowered their guidance which was only 30 days old, citing deteriorating economic conditions. SNAP fell over 25% after the news and and it pulled other tech names down in the space like FB, GOOGL, ROKU, ect. Futures also fell and are lower this morning though not at yesterday morning lows just yet - it has been so tough to trust any of these rallies recently. We have the Fed minutes tomorrow and PCE on Friday so could move markets. Despite all the negativity today from SNAP and WMT/TGT last week, would not be surprised to see a little bounce to $400 first on the SPY. Not going to be aggressive at all on the call side but open to adding a few speculative weekly positions if stocks find a bid at the open:
ULTA chopped around in a lackluster session yesterday causing my puts to lose some premium. If ULTA breaks above $355 today I may look to close the position and revisit post earnings on Friday. Otherwise, if that $340 area breaks, the low $330s and even $320s should come quick:
IBM closed back above $130 finally - hopefully can hold that level and work its way back up to $140. Not looking to add any later dated strikes until it breaks and holds $135:
ROKU is taking it on the chin with the rest of the names in the tech space that have anything related to advertising $'s. Not going to try and catch a falling knife at the open but that $85 handle could be a bouncing point:
HSKA is still on watch for an eventual bounce and move over $100 and possible $110+ in the coming weeks. Will add on strength:
Lastly, a report out from Bloomberg said DXCM is looking to acquire PODD: https://www.bloomberg.com/news/articles/2022-05-23/dexcom-is-said-in-talks-to-acquire-device-firm-insulet
My old friend TNDM has been absolutely destroyed this year. This news could spark some interest in the sector. May look to add some speculative calls for a move into the $80s in the coming weeks:
Here are the analyst changes of note for today:
Snap price target lowered to $33 from $60 at Truist |
| Truist analyst Youssef Squali lowered the firm's price target on Snap to $33 from $60 after the company cut its Q2 guidance on macro headwinds but keeps a Buy rating on the shares. The outlook change is disappointing, but this slowdown is likely to be transitory given Snap's healthy fundamentals, with growing adoption of its first-person data measurement solutions by advertisers, growing DAUs, and higher adoption of new products like Spotlight, Map and AR/VR for commerce, the analyst tells investors in a research note |
| Zoom rebutted 'overwhelmingly negative sentiment' with Q1, says Morgan Stanley |
| Morgan Stanley analyst Meta Marshall said sentiment on Zoom Video was "overwhelmingly negative" heading into the company's Q1 report, which she said missed the fact that video demand continues to prove durable, Zoom specifically is doing well in holding share, and the business model remains very attractive. The analyst, who argues that Zoom rebutted concerns with is fiscal Q1 report, calls Zoom "a name where investors need to search hard for a reason to not own it." She maintains an Overweight rating and $140 price target on Zoom shares following the earnings report |
| Snap price target lowered to $26 from $41 at MKM Partners |
| MKM Partners analyst Rohit Kulkarni lowered the firm's price target on Snap to $26 from $41 after its Q2 guidance cut on deteriorating macro environment but keeps a Buy rating on the shares while noting that the stock is trading at the lowest multiple since its IPO |
| Atlantic downgrades Roblox on softening app trends, halves target |
| Atlantic Equities analyst Kunaal Malde downgraded Roblox to Neutral from Overweight with a price target of $30, down from $60. The analyst believes Roblox is taking the right approach to focus on monetization and says its year-over-year bookings trends should improve going forward as compares get easier. However, weakening app download trends suggest engagement could continue to soften in core markets in the near-term, Malde tells investors in a research note. In addition, the stock's growth-adjusted valuation looks less attractive than peers on a relative basis, says the analyst |
And here is what I am watching today: HSKA, ROKU, TNDM, BPT, SQ, BTAI, ZYME, CMG, YOU, PLCE, and DECK.
Let's have a great day!
-JB