Stocks fell to start the week, with the S&P ending Monday down .89%, giving back some of last weeks gains. Asia markets rallied overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open, the Dollar, Yields, and Oil are lower while Gold is higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-141/
Stocks are pointing to a higher open this morning, aided by a lower than expected PPI number, somewhat confirming the CPI data from last week. Yesterday felt like a consolidation session, with stocks failing to find support. Will be interesting to see how today plays out. As I mentioned in yesterdays watchlist, there is not much in the way of catalysts until Decembers Fed meeting. So outside of any surprising news event, markets could see a push with the SPY moving thru its 200dma at $405 and heading towards $415 or so:
FVRR and ZYME both gave back some of last weeks gains. Still looking to close the last off my calls out and add some December strikes:
U is gapping higher this morning. Think a move into the high $30s is coming this week so may look for some speculative calls at the open:
ROKU is gapping over $60 this morning. Think it can trade north of $65 this week so may look to add some speculative calls as well:
Retailers are reporting this week, led by names like WMT, HD, TGT, LOW, and others. WMT reported better than expected numbers this morning and think that bodies well for TGT. May look to add some speculative calls today:
And still eyeing calls on DPZ, WING, BIIB, CMG, AXON, and SPOT.
Here are the analyst changes of note for today:
|Alphabet price target lowered to $120 from $125 at Morgan Stanley|
|Morgan Stanley analyst Brian Nowak lowered the firm's price target on Alphabet to $120 from $125 and keeps an Overweight rating on the shares. Signs of a weakening ad market continued to grow through Q3 earnings season as 14 of 19 companies he tracks in the space either missed Q3 ad revenue expectations and/or guided to slower than expected forward growth, Nowak tells investors. He is reducing his 2023 U.S. online advertising and e-commerce forecasts and is now modeling about 6% and 5% growth, respectively, in online advertising and e-commerce|
|Meta Platforms price target lowered to $100 from $105 at Morgan Stanley|
|Morgan Stanley analyst Brian Nowak lowered the firm's price target on Meta Platforms to $100 from $105 and keeps an Equal Weight rating on the shares. Signs of a weakening ad market continued to grow through Q3 earnings season as 14 of 19 companies he tracks in the space either missed Q3 ad revenue expectations and/or guided to slower than expected forward growth, Nowak tells investors. He is reducing his 2023 U.S. online advertising and e-commerce forecasts and is now modeling about 6% and 5% growth, respectively, in online advertising and e-commerce|
|Cboe Global Markets named a 'Top Pick' at Morgan Stanley|
|Morgan Stanley analyst Michael Cyprys had elevated Cboe Global Markets (CBOE) to his "Top Pick," replacing Charles Schwab (SCHW), as he sees an attractive entry point with shares down about 10% over the last 10 days. He views the underperformance as "unwarranted" and sees Cboe benefiting from a challenging macro backdrop and volatility that should support volumes and drive upwards revisions, said Cyprys, who has an Overweight rating and $150 price target on Cboe shares|
|Palo Alto Networks price target lowered to $220 from $250 at MKM Partners|
|MKM Partners analyst Catharine Trebnick lowered the firm's price target on Palo Alto Networks to $220 from $250 and keeps a Buy rating on the shares ahead of its Q1 results this week. The analyst states that she expects solid results based on favorable channel feedback and healthy cybersecurity spending, with interviewed resellers and CISOs indicating that the company continues to expand its footprint within its customer base. Trebnick adds however that her price target cut reflects valuation that is more in line with software comps at enterprise value of 7.7-times expected sales, which is also the midpoint of Palo Alto's peer group historical average of 6- to 10-times|
|Moderna price target raised to $182 from $160 at BofA|
|BofA analyst Geoff Meacham raised the firm's price target on Moderna (MRNA) to $182 from $160 and keeps a Neutral rating on the shares citing updated COVID-19 assumptions after the company presented phase 2/3 results highlighting that its Omicron-targeting booster candidate triggered a superior antibody response against Omicron BA.4/BA.5 than a booster dose of mRNA-1273. However, he was "surprised" by Moderna's strength yesterday given "the open questions on the durability of COVID-19 vaccine revenue" for both Moderna and Pfizer (PFE) and he continues to think that demand for COVID-19 boosters is "likely to continue waning," Meacham said|
And here is what I am watching today: TGT, U, ZYME, FVRR, BIIB, YOU, DPZ, WING, BIIB, CMG, AXON, and SPOT.
Let's have a great day!