Markets closed higher for the second session in a row with the S&P adding .48% yesterday in another choppy session. Asia markets closed mostly lower overnight while Europe stocks are in the red this morning. U.S. futures are pointing to a slightly higher open as I write this, the Dollar, Yields, and Gold are lower while Oil is higher.
And here is JB's rant from yesterday if you missed : https://www.optionmillionaires.com/jb-afternoon-rant-may-3rd-2022/
And this is what UPB is reading this morning: https://www.optionmillionaires.com/tuesday-reads-4/
It was another choppy session for markets on Tuesday, with the S&P trading between red and green for most of the day but found a bid at the very end to close in the green. The Vix closed under $30, which I guess can be construed as a positive. Today we get the Fed's rate decision, with a statement out at 2pm and press conference at 2:30. It will definitely be a rocky afternoon. As I mentioned in my rant, a .50% hike is almost a foregone conclusion and now I think a surprise .75% hike may actually be received positively by the markets. If the SPY can find some support and climb over that $420 handle, I may look at some spec call plays into the end of the week:
On the flip side, we just had our last back to back day of gains Wednesday and Thursday of last week only to see Friday be the worst day for the Nasdaq since 2020. Either way, won't be overly aggressive.
ZYME found buyers again yesterday closing right near the highs of the session and over that $7 handle. Some of the move in the afternoon could be attributed to a release from the firm looking to buy ZYME :
As I mentioned before, I think the stock heads higher irregardless of the company accepting or spurning the buyout offer:
TRIP reports earnings after the close today. It is a name I have been intrigued in for sometime. They have the most trafficked travel site on the planet and have yet to figure out how to monetize it. The stock has closed lower after earnings in 12 of the last 14 reports, so risk is there. But could see some reward if there is a surprise beat and raise. Think the low to mid $30s would come. Next week $30s look interesting so may add those as a speculative lotto:
TWLO also reports earnings after the close today. The stock is off 50% since its last report on Feb 9th - and that was despite a decent Q. Premiums are expensive, all the way past $150. Will be watching for a possible small speculative play on the name into earnings today:
SMG, BIIB, and CDLX were unplayable yesterday. BIIB tried to muster a rally but failed while SMG tried to bounce but closed flat which just crushed premiums. On the flip side CDLX gapped but couldn't find buyers and closed right about where it opened. Of the 3, I like CDLX for a move higher and will be watching again today for a possible break over that $40 handle:
Will be watching OLED as well today, they report earnings tomorrow.
Here are the analyst changes of note for today:
Skyworks price target lowered to $180 from $220 at Craig-Hallum |
| Craig-Hallum analyst Anthony Stoss lowered the firm's price target on Skyworks to $180 from $220 and keeps a Buy rating on the shares. The analyst notes that the company reported a "solid" quarter with results in-line with Street estimates, but with guidance lower on well-known China weakness due to lockdowns |
Starbucks price target lowered to $98 from $105 at MKM Partners |
| MKM Partners analyst Brett Levy lowered the firm's price target on Starbucks to $98 from $105 but keeps a Buy rating on the shares after its Q2 results. Starbucks is responding to the challenges seen across the global marketplace by layering on additional investments to drive its intermediate-to-longer-term growth, and this backdrop may way on the stock until additional tailwinds materialize, the analyst tells investors in a research note. Levy adds however that he remains constructive on the company's long-term prospects |
| lock price target lowered to $140 from $155 at Jefferies |
| Jefferies analyst Trevor Williams lowered the firm's price target on Block to $140 from $155 and keeps a Buy rating on the shares as he previewed Q1 results. The Street view on Cash App gross profit in Q1 looks "achievable," with help from Taxes and Instant Deposit pricing, but the view in Q2 and beyond looks "stretched," said Williams. However, he adds that he expects that any modest reset will to be viewed as a de-risking event ahead of the potential catalyst from the investor day in two weeks |
AMD price target lowered to $147 from $155 at Jefferies |
| Jefferies analyst Mark Lipacis lowered the firm's price target on AMD to $147 from $155 and keeps a Buy rating on the shares following the company's March quarter results and June quarter guidance, stating that he estimates AMD gained about 250 to 300 basis points of server revenue share quarter-over-quarter. His updated is based on his estimate of 2025 EPS power of $7.10, noted Lipacis, who sees the company's analyst day coming on June 9 as a potential catalyst |
Lyft price target lowered to $52 from $58 at Canaccord |
| Canaccord analyst Michael Graham lowered the firm's price target on Lyft to $52 from $58 and keeps a Buy rating on the shares. The analyst noted the company reported solid Q1 results, while guidance points to an ongoing recovery that remains at a modest pace |
Freshworks price target lowered to $21 from $25 at Canaccord |
| Canaccord analyst David Hynes lowered the firm's price target on Freshworks to $21 from $25 and keeps a Buy rating on the shares. The analyst noted management acknowledged that large deals fell short of expectations in Europe, which sounded more execution-driven than macro, as still ramping employees led to the large deal sales blip |
And here is what I am watching today: OLED, CDLX, TRIP, TWLO, ROKU, SAM, ALGN, IBM, SPOT, DDOG, MDB, TEAM, RNG, and ZS.
Let's have a great day!
-JB