Markets staged a nasty reversal yesterday, after a higher than expected CPI read. The S&P reversed the 2% morning losses to close up 2.68% while the Nasdaq overcame over 3% losses to close up 2.23%. Asia markets closed lower overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a higher open as I write this, the Dollar is higher while Yields, Oil, and Gold are all lower.
And this is what UPB is reading this morning:: https://www.optionmillionaires.com/morning-reads-119/
Markets staged a monster reversal yesterday despite CPI data showing inflation is still rampant. Who knows if this is a sign that the market is pricing in a top for inflation and a bottom for the markets but certainly can be construed as a positive. The SPY broke below the key $350 handle but them embarked on a rally above the $360 handle. Will be watching that $360 handle again today. If we hold, think $370+ comes next week:
TWLO was holding up relatively well despite the gap down yesterday so I went and added some weekly calls. I was able to close most out for over 100% and 200%. Still holding a few into today. Think it can come and trade up near/above $70. May actually look to add some more later dated strikes to play for that move:
AMLX closed at all-time highs yesterday, Think this trades north of $40 in the coming weeks. May look to close the last of my Oct $35 strikes and add some Nov calls for that move:
GNRC is now down over 5% on the week after another 2% down session yesterday. The chart is nearly pinching. Once it finds some footing it should be good for a 10%+ rally. Still watching for some calls:
GNRC daily:
Still eyeing SPOT, CME, and LOCO for some calls. If the market finds weakness and fails to hold $360 will look at some TZA calls or IWM puts as a hedge.
Here are the analyst changes of note for today:
Tesla price target lowered to $230 from $280 at Wells Fargo |
| Wells Fargo analyst Colin Langan lowered the firm's price target on Tesla to $230 from $280 and keeps an Equal Weight rating on the shares ahead of the Q3 results on October 19. The analyst forecasts a "slight" beat, saying the benefit of pricing will likely be offset by currency headwinds. However, Tesla is the biggest beneficiary of the Inflation Reduction Act, Langan tells investors in a research note. The analyst increased his 2023 through 2026 earnings estimates by 33% to reflect the bill's benefits. There should be a $3,100 per vehicle benefit from production tax credits for any U.S.-made battery, which alone drives $2.8B in savings if Tesla maxes its 900,000 U.S. footprint, notes Langan. The analyst dropped the price target for the shares to reflect higher weighted average cost of capital |
| Roblox price target lowered to $40 from $43 at Jefferies |
| Jefferies analyst Andrew Uerkwitz lowered the firm's price target on Roblox to $40 from $43 and keeps a Hold rating on the shares. Based on his checks and model, he forecasts the company reporting net bookings of about $205M for September, which would represent year-over-year growth of about 5% and represent a deceleration relative to June, July, and August, Uerkwitz tells investors. For September, he forecasts DAUs at 58.8M. After adjusting for a one-time outage last October during Halloween weekend and other factors, he believes October bookings will be flat year-over-year at about $215M |
| Tesla price target lowered to $230 from $280 at Wells Fargo |
| Wells Fargo analyst Colin Langan lowered the firm's price target on Tesla to $230 from $280 and keeps an Equal Weight rating on the shares ahead of the Q3 results on October 19. The analyst forecasts a "slight" beat, saying the benefit of pricing will likely be offset by currency headwinds. However, Tesla is the biggest beneficiary of the Inflation Reduction Act, Langan tells investors in a research note. The analyst increased his 2023 through 2026 earnings estimates by 33% to reflect the bill's benefits. There should be a $3,100 per vehicle benefit from production tax credits for any U.S.-made battery, which alone drives $2.8B in savings if Tesla maxes its 900,000 U.S. footprint, notes Langan. The analyst dropped the price target for the shares to reflect higher weighted average cost of capital. |
| BlackRock price target lowered to $666 from $716 at JPMorgan |
| JPMorgan analyst Kenneth Worthington lowered the firm's price target on BlackRock to $666 from $716 and keeps an Overweight rating on the shares. The company reported a "mixed" Q3 as challenging market conditions persist, Worthington tells investors in a research note |
Domino's Pizza price target lowered to $359 from $373 at Deutsche Bank |
| Deutsche Bank analyst Brian Mullan lowered the firm's price target on Domino's Pizza to $359 from $373 and keeps a Hold rating on the shares. The company reported "better than feared" domestic same-store-sales in Q3, Mullan tells investors in a research note |
And this is what I am watching today: TWLO, GNRC, SPOT, CME, LOCO, TZA, IWM, WING, BLK, APRN, PTON, ROKU, CMG, U, WIX, CI, TRIP, SAGE, and PTCT.
Let's have a great day!
-JB