Markets sold off on Wednesday, giving back all the gains for the week, with the S&P finishing the day down 1.48%. Asia markets closed lower overnight while Europe indexes are in the red this morning, U.S. futures are pointing to a mixed open, the Dollar and Yields are higher while Oil and Gold are lower.
Markets sold off on Wednesday, giving back all the gains for the week, with the S&P finishing the day down 1.48%. Asia markets closed lower overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a mixed open, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/friday-morning-reads-226/
It is no secret the Fed is going continue to raise rates, but the comments seem to have given folks another excuse to take profits. The SPY broke back under that $440 handle. Would like to see it close back above that today as we head into likely one of the most important earnings season weeks in recent memory:
Stocks opened in the green yesterday only to see the gains melt away and then some for the rest of the session with Powell's hawkish comments getting the blame : https://www.wsj.com/articles/feds-powell-could-seal-expectations-of-half-point-rate-rise-in-may-11650533444?mod=article_inline
ISRG reported a great quarter after the close yesterday, beating on revenues, EPS, procedural guidance and also raising its procedural guidance for Q2. At the same time, they seemed cautious around their davinci placements and trade-ins which has the stock down in the pre-market. Looks like the last of my $300 calls will open near bidless. Will look to try and close those out at the open and will likely not trade ISRG today unless it finds its way to $270, where I may look at some speculative bounce calls.
IBM rallied again yesterday to test $141.88 in the afternoon only to fall with the rest of the market and close at $139.85. I was able to close more calls out for nearly 1000% and will hold the rest of my May $140s as long as it holds $137 or so. Think the last earnings report confirms the turnaround story is happening and the stock trades into the mid-high $140s next few weeks:
Near the end of the day I added BTAI calls. BTAI is a $360 mil company that just received $260 mil in financing from Oaktree and Qatar Investment Authority. It is non-dilutive and gives them an option to buy BTAI shares at a discount. The stock hit 52 week lows yesterday and think this can find a bid in the coming days and trade back up near $20. May look at some later dated strikes as well:
SAM reported earnings after the close yesterday that missed estimates once again. One of these reports will mark the bottom and this maybe it. I may look at some speculative calls to play for a move to $370 or so in the coming weeks if it holds $335 in the morning:
The Wedbush analyst, who I would argue about his NFLX bearish calls a decade ago, came out this morning with some bullish comments on ROKU. Still looking for some calls into their earnings next week and may add some $160 or so May strikes today if it holds $100:
Also still watching POOL, CAR, CUTR, BURL, and ALGN.
Next week is a huge one for earnings with FB, AAPL, GOOGL, and AMZN all reporting(amongst others). Though numbers are backward looking but their guidance and commentary could certainly influence the market.
Here are the analyst changes of note for today:
| Boston Beer price target lowered to $620 from $670 at Credit Suisse |
| Credit Suisse analyst Kaumil Gajrawala lowered the firm's price target on Boston Beer to $620 from $670 and keeps an Outperform rating on the shares following the company's Q1 earnings results. The analyst believes this quarter's results was the company's "first positive tone in multiple quarters," adding that the maintained EPS and revenue guidance hint that the worst may be behind |
alyst changes of note for today:
| Anthem price target raised to $586 at Wells Fargo |
| Wells Fargo analyst Stephen Baxter raised the firm's price target on Anthem to $586 and keeps an Overweight rating on the shares following the company's Q1 earnings report on Wednesday. The analyst noted that the "underlying earnings quality was high" and that the company raised its FY22 adjusted EPS guidance. Baxter continues to see Anthem's business momentum as "strong across both its health plan and services businesses. |
| Wedbush sees overlooked 'bright spots' at Roku, reiterates Outperform |
| Wedbush analyst Michael Pachter reiterated an Outperform rating and $150 price target for Roku, calling the company "a sound long-term investment as the company is positioning itself for the future." While there are "headwinds aplenty," Pachter believes Roku's pace of revenue growth is sustainable as he sees Roku being "one of the preeminent streaming platforms globally" by 2030, noting that the company is only in the early stages of its international expansion |
Snap price target lowered to $55 from $59 at Morgan Stanley |
| Morgan Stanley analyst Brian Nowak lowered the firm's price target on Snap to $55 from $59 and keeps an Overweight rating on the shares following the company's Q1 report and Q2 revenue guidance that he says was about 5% lower than expected. Though Snap's execution on ads and engagement remains strong, its cautious macro guidance sets the table for growing uncertainty about the state of the ad markets, Nowak said. However, he adds that based on last night's call, he now believes he previously overstated Snap's risk to IP signal loss and he now sees fingerprinting as a smaller risk than he previously thought |
| Acushnet Holdings assumed with a Neutral at JPMorgan |
| JPMorgan analyst Kevin Heenan assumed coverage of Acushnet Holdings (GOLF) with a Neutral rating and price target of $45, up from $30. The analyst sees the 2022 outlook for golf as balanced with tailwinds from pricing, channel re-stock and product innovation weighed against challenging comparisons and a broader economic reopening. He prefers shares of Callaway Golf (ELY) over Acushnet |
| Boston Beer price target lowered to $375 from $500 at Cowen |
| Cowen analyst Vivien Azer lowered the firm's price target on Boston Beer to $375 from $500 and keeps a Market Perform rating on the shares. The analyst noted results missed her below-consensus estimates as shipments and gross margins missed her estimates |
And here is what I am watching: BTAI, POOL, SAM, ISRG, TWTR, IBM, ROKU, TWLO, CAR, CUTR, BURL, and ALGN.
Let's have a great day!
-JB
And this is what UPB is reading this morning:
Stocks opened in the green yesterday only to see the gains melt away and then some for the rest of the session with Powell's hawkish comments getting the blame : https://www.wsj.com/articles/feds-powell-could-seal-expectations-of-half-point-rate-rise-in-may-11650533444?mod=article_inline
It is no secret the Fed is going continue to raise rates, but seems to haver given folks another excuse to take profits. The SPY broke back under that $440 handle. Would like to see it close back above that today as we head into likely one of the most important earnings season weeks in recent memory.
Here are the an
| Boston Beer price target lowered to $620 from $670 at Credit Suisse |
| Credit Suisse analyst Kaumil Gajrawala lowered the firm's price target on Boston Beer to $620 from $670 and keeps an Outperform rating on the shares following the company's Q1 earnings results. The analyst believes this quarter's results was the company's "first positive tone in multiple quarters," adding that the maintained EPS and revenue guidance hint that the worst may be behind |
alyst changes of note for today:
| Anthem price target raised to $586 at Wells Fargo |
| Wells Fargo analyst Stephen Baxter raised the firm's price target on Anthem to $586 and keeps an Overweight rating on the shares following the company's Q1 earnings report on Wednesday. The analyst noted that the "underlying earnings quality was high" and that the company raised its FY22 adjusted EPS guidance. Baxter continues to see Anthem's business momentum as "strong across both its health plan and services businesses. |
| Wedbush sees overlooked 'bright spots' at Roku, reiterates Outperform |
| Wedbush analyst Michael Pachter reiterated an Outperform rating and $150 price target for Roku, calling the company "a sound long-term investment as the company is positioning itself for the future." While there are "headwinds aplenty," Pachter believes Roku's pace of revenue growth is sustainable as he sees Roku being "one of the preeminent streaming platforms globally" by 2030, noting that the company is only in the early stages of its international expansion |
Snap price target lowered to $55 from $59 at Morgan Stanley |
| Morgan Stanley analyst Brian Nowak lowered the firm's price target on Snap to $55 from $59 and keeps an Overweight rating on the shares following the company's Q1 report and Q2 revenue guidance that he says was about 5% lower than expected. Though Snap's execution on ads and engagement remains strong, its cautious macro guidance sets the table for growing uncertainty about the state of the ad markets, Nowak said. However, he adds that based on last night's call, he now believes he previously overstated Snap's risk to IP signal loss and he now sees fingerprinting as a smaller risk than he previously thought |
| Acushnet Holdings assumed with a Neutral at JPMorgan |
| JPMorgan analyst Kevin Heenan assumed coverage of Acushnet Holdings (GOLF) with a Neutral rating and price target of $45, up from $30. The analyst sees the 2022 outlook for golf as balanced with tailwinds from pricing, channel re-stock and product innovation weighed against challenging comparisons and a broader economic reopening. He prefers shares of Callaway Golf (ELY) over Acushnet |
| Boston Beer price target lowered to $375 from $500 at Cowen |
| Cowen analyst Vivien Azer lowered the firm's price target on Boston Beer to $375 from $500 and keeps a Market Perform rating on the shares. The analyst noted results missed her below-consensus estimates as shipments and gross margins missed her estimates |