Stocks closed mixed on Thursday, with the Nasdaq and S&P closing in the green while the Dow finished in the red. Asia markets closed mostly higher overnight while Europe stocks are in the red this morning. U.S. futures are pointing to a mixed open, the Dollar and Gold are higher while Yields and Oil are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/friday-morning-morning/
The S&P closed at another record higher yesterday but it did not seem like a green session, with many names in the red. Folks like to use the 'breadth' rationale to support a bear case and have been doing it for years. Yesterday it certainly seemed that way with the S&P held up by Bloomberg's report that AAPL plans to launch fully self-driving cars by 2025. GOOGL and other big cap names also helped give the illusion all was great, while underneath smaller cap names fell. Not going to sit here and put my bear suit on, especially during a period that is historically bullish for markets, but I am cautious. After trading near 16 for most of October, the VIX is nearing the 20 handle. You have the Fed starting to Taper, new Covid restrictions in Europe, and inflation still a concern with Germany posting its highest PPI in over 26 years. If the market fails to find support today, may look at some lotto puts on my typical put hedge names like MDB, TEAM, SPLK along with V and MA.
It was another rough day for WYNN closing at $90.48 and down for the third session in a row. Seems all the names in the space are falling in tandem. Not about to average down but open to adding some lower strikes and/or later dated ones if it can hold $90 today:
SSYS has now closed down for 8 sessions in a row, testing that $30 handle yesterday. Have Jan strikes on SSYS, so have time and just like WYNN, not going to average down and may just look for some later strikes in 2022 if it holds $30:
IQV is a name I have never seen before that came up on a scan yesterday. The chart looks interesting and so does the story, though it looks like Covid may have provided a bit of a tailwind. The company is also buying back stock. Pending any crazy market sell-off, can see this over $300 in December so may look to some Dec calls today:
NTES is going to be added to the Hang Seng Index after dual listing last year. They also just reported some decent earnings this week despite the China crackdown. Could be a nice lotto trade today so may look at some $115 or so strikes for a move over $119 or so:
It is monthly option expiration today so names that typically only have monthly options are set to expire today. This can lead to some interesting lotto's. Names I am watching: SAM, GWW, GSHD, SHW, and AZO.
Don't forget, next week the market is open for 3 1/2 days with Friday's half-day being one of my favorite trading days of the year.
Here are the analyst changes of note for today:
| Palo Alto Networks price target raised to $615 from $560 at BMO Capital | |
| BMO Capital analyst Keith Bachman raised the firm's price target on Palo Alto Networks (PANW) to $615 from $560 and keeps an Outperform rating on the shares after its Q1 earnings beat. The company delivered "solid" metrics with upside to billings, revenues and free cash flow, the analyst tells investors in a research note. Bachman adds that much like Fortinet (FTNT), Palo Alto's product revenues had the most significant outperformance, and its product revenue visibility has also increased for the medium term | |
| Bath & Body Works price target raised to $90 from $84 at Morgan Stanley | |
| Morgan Stanley analyst Kimberly Greenberger raised the firm's price target on Bath & Body Works to $90 from $84 and keeps an Overweight rating on the shares. The company's "impressive" Q3 results now make it six consecutive quarters of performance in-line with or above long-term financial targets, noted Greenberger, who thinks that supply chain headwinds and tough comparisons in the first half may limit upside following the stock's post-earnings rally. Still, she sees a "clear" multiple re-rating opportunity for Bath & Body Works in the second half of 2022, noted the analyst | |
| Plug Power price target raised to $65 from $43 at Morgan Stanley | |
| Morgan Stanley analyst Stephen Byrd raised the firm's price target on Plug Power to $65 from $43 and keeps an Overweight rating on the shares as he "significantly" increased his revenue estimates, notably in electrolyzers and hydrogen production, following management commentary on growth from these businesses. His updated price target implies 61% upside, noted Byrd, who said he is now more bullish on Plug Power's ability to grow its hydrogen production and electrolyzer businesses at a more rapid rate and capture market share within these businesses | |
| Micron, Lam Research added to Top Picks list at Evercore ISI | |
| Evercore ISI analyst C.J. Muse is adding Micron (MU) and Lam Research (LRCX) to the firm's Top Picks list and increasing his price target on Lam shares to $775 from $700, citing his view that "it is clear that the tides are shifting" after memory had been a laggard since early June. Pricing decline expectations in memory chips into the first half of calendar 2022 are becoming "less bad", estimates are likely bottoming in the first half, and green shoots are arising, Muse tells investors. Some investors may be thinking Samsung is getting aggressive in DRAM but "they are not, and quite frankly cannot given supply constraints," according to Muse who calls this "an obvious benefit for DRAM sentiment and Micron." Muse has Outperform ratings on Micron and Lam Research | |
| Intuit price target raised to $720 from $650 at Evercore ISI | |
| Evercore ISI analyst Kirk Materne raised the firm's price target on Intuit to $720 from $650 and keeps an Outperform rating on the shares. While the company was "facing a high bar" heading into fiscal Q1 results given the 70% run in shares year-to-date, Intuit "cleared it by a mile," with Materne seeing the central takeaway from the company's quarterly report being that Intuit is a more diversified growth story today than it was 12 months ago. He sees the breadth of the Small Business portfolio "shining through" and believe investors should have a higher level of confidence in the durability of mid-to-high teens percentage revenue growth over the next several years | |
| Palo Alto Networks price target raised to $530 from $475 at Loop Capital | |
| Loop Capital analyst Yum Kim raised the firm's price target on Palo Alto Networks to $530 from $475 and keeps a Hold rating on the shares. The company's Q1 results were "solid" thanks to its "strong" firewall business that is currently undergoing a major product refresh, the analyst tells investors in a research note. Kim adds that despite some supply-chain issues, Palo Alto Networks was able to show accelerating product revenue growth, and he sees some tailwinds coming from a 7.5% price increase towards the end of the quarter. The analyst believes however that the stock is "fairly valued" | |
| BJ's Wholesale price target raised to $62 from $48 at MKM Partners | |
| MKM Partners analyst Bill Kirk raised the firm's price target on BJ's Wholesale to $62 from $48 but keeps a Neutral rating on the shares. The analyst cites the company's "strong" comparable store sales performance, but notes that its Q3 gross margin contraction was larger than he modeled. Kirk adds that he remains concerned with BJ's ability to pass-through inflation, labor investments limiting forward profitability upside, and inventory availability being a bigger issue at BJ's due to its relative size and regional scope | |
| Applied Materials price target raised to $175 from $165 at DA Davidson | |
| DA Davidson analyst Thomas Diffely raised the firm's price target on Applied Materials to $175 from $165 and keeps a Buy rating on the shares. The company's Q4 results and guidance were slightly below consensus expectations amid tougher supply chain disruptions and the component shortage headwinds will continue into 2022, but beyond these challenges, the underlying demand remains robust with wafer fab spending at record levels and backlog building, the analyst tells investors in a research note | |
And here is what I am watching today: IQV, WYNN, SSYS, NTES, PTON, SAM, GWW, GSHD, SHW, TWLO, SPOT, V, MA, MDB, TEAM, and AZO.
Let's have a GREAT DAY!
-JB