Stocks closed lower again on Tuesday, with the S&P falling .81% although off the lows of the session. Asia markets closed mostly higher overnight while Europe indexes are in the green this morning. U.S. future are pointing to a lower open, the Dollar and Oil are higher while Yields and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-30/
It was another rough day for stocks on Tuesday, with SNAP's lowered guidance taking a toll on pretty much any tech name in the ad space, including GOOGL, FB, ect. Markets hit lows at 11am and found some support into the close but still closed in the red. Premiums remain extremely elevated making buying puts nearly impossible for me... at least on a risk/reward basis. GOOGL was down 7% at times yesterday morning yet most of the weekly puts were only up 100%... I say only, because a 7% drop in GOOGL outside of earnings would normally have put those up 1000% - 2000%+. In this current environment you are paying for extremely expensive put positions(high risk), and then the reward if it goes your direction is not even close to making up for the risk. Not to mention markets have had a tendency to squeeze out of nowhere, turning any profitable put position into a loss. If I see a decent risk/reward setup I will certainly take it, but protecting cash has been a priority for me this past week or two.
Today we get the Fed minutes at 2pm. Could certainly cause some swings. I think now folks are worried the Fed may turn a bit more dovish in the face of a market in(near) bear market territory so will be interesting to see what they are saying. If there is a silver lining from the past few weeks it is that rates seems to have stabilized with the 10yr falling to April levels. If Yields continue to find some stability, could be a sign that inflation has topped... something I will be watching.
IBM rallied for the 2nd session in a row and despite the market sell-off. As mentioned on yesterdays watchlist, if it can break that $135 handle, I will look to add some more calls for a move into the $140s in the coming weeks:
ULTA broke under that key $340 handle, tested $330, then bounced into the close. I may look to close my puts today and revisit post earnings tomorrow if the stock finds support today - not to mention DB reiterated their buy rating this morning:
BPT is back in break-out mode, closing at 52 week highs and looks set to test the $20s in the coming days. Still holding my June strikes, if it can hold $17.50 today I may look at some later dated strikes like July $25s:
Still eyeing HSKA:
There are some big earnings after the closer today. Don't be surprised if I take a flyer on one or all of these names:
SNOW:
SPLK
NVDA
If the market finds any footing today, I will be watching ROKU, U, NTES, and DOCU for some spec calls.
Here are the analyst changes of note for today:
AutoZone price target lowered to $2,174 from $2,215 at Truist |
| Truist analyst Scot Ciccarelli lowered the firm's price target on AutoZone to $2,174 from $2,215 but keeps a Buy rating on the shares. The company's Q3 results were "very solid" despite experiencing several weeks of soft sales in their DIY channel, the analyst tells investors in a research note. Ciccarelli adds that while trends in the middle of the quarter were also impacted by very difficult comparisons as well as the sharp rise in gas prices and inflation, AutoZone continues to grow their commercial business at a much faster rate than its public competitors, and the overall DIY channel remains resilient due to more personal vehicle usage, elevated vehicle prices, and the in-step SKU inflation |
| Best Buy price target raised to $110 from $107 at DA Davidson |
| DA Davidson analyst Michael Baker raised the firm's price target on Best Buy to $110 from $107 and keeps a Buy rating on the shares. The company missed on Q1 earnings and cut its FY22 guidance, with the key message of the quarter being that Best Buy has surrendered some of the pandemic era related gains in consumer electronics, the analyst tells investors in a research note. Baker adds however that the second half of the year is expected to be better for Best Buy, also noting that the company looks "a whole lot better off now than pre-pandemic" and should continue to take share in a large and growing market as a best in close retailer |
Loop Capital sees consensus for Apple's iPhone revenue in second half as low |
| Loop Capital analyst Ananda Baruah keeps his Buy rating and $180 price target on Apple, stating that while he still sees a rise to June-quarter iPhone revenue, the consensus for September and December quarters "remain low" as the company's average selling prices continue their trend of being "materially stronger" than the Street. The popularity of Pro models that began with the iPhone 12 is altering overall price dynamics, while the 1TB options for iPhones, even at mild levels, impacts average capacities and ASPs sharply upwards, Baruah tells investors in a research note |
| Erasca announces three key appointments to leadership |
| Erasca announced the appointments of Shannon Morris as senior vice president of clinical development, Amy Grekowicz Parker as vice president of clinical operations, and John Lo as senior commercial advisor and member of Erasca's research, development, and commercial advisory board, RDCAB. Morris joined Erasca from Istari Oncology, where she was vice president, head of clinical development, and a member of the executive committee. Parker joins Erasca with more than 20 years of biopharmaceutical industry experience and nine years of academic research. Lo brings over 20 years of biopharmaceutical commercial expertise, including commercial experience across business development, launch, and lifecycle management |
| Dell Technologies price target lowered to $60 from $68 at JPMorgan |
| JPMorgan analyst Samik Chatterjee lowered the firm's price target on Dell Technologies to $60 from $68 and keeps an Overweight rating on the shares. Following the first half of the earnings season, the analyst is now "increasingly concerned" about the set up for traditional hardware earnings prints over the next couple of weeks. Revenue and earnings progression through the year is likely to be hampered by the supply chain constraints exacerbated by the COVID-led lockdowns in China, Chatterjee tells investors in a research note. He says valuations in IT hardware have "yet to bottom. |
| Abercrombie & Fitch price target lowered to $21 from $34 at UBS |
| UBS analyst Jay Sole lowered the firm's price target on Abercrombie & Fitch to $21 from $34 and keeps a Neutral rating on the shares. The company's Q1 results were "soft" with more near-term headwinds approaching, the analyst tells investors in a research note |
And here is what I am watching today: HSKA, IBM, U, TNDM, BPT, ROKU, U, NTES, DOCU, SQ, BTAI, ZYME, CMG, YOU, PLCE, and DECK.
Let's have a great day!
-JB