Stocks fell on Wednesday, with the S&P losing .67%, giving back some of the gains from the previous two sessions. Asia markets closed mostly lower overnight while Europe stocks are in the green this morning. U.S. futures are pointing to a mixed open, the Dollar is lower while Oil, Yields, and Gold are all higher.
And this is what UPB is reading this morning:
Earnings season is kicking into high gear and there have been quite a few decent reports so far including MMM, GS, BAC, NFLX, and others. Wouldn't say it is a sign of a bottom but certainly helps alleviate some of the major concerns out there in regards to an economic slow down.Also think there will be some nice upside suprise moves in the coming weeks on some names - as mentioned yesterday - will get a list together. It seems every day there is another headline screaming that a recession is coming... I think we are already in one and the market will start pricing in a recovery soon. The SPY couldn't hold the $370s yesterday. Would want to see that reclaimed today and think the $380s will come next:
ZYME announced a licensing deal with JAZZ yesterday with an upfront payment of $50 million and potential to rake in over $1.7 bil depending on milestones. Should be a catalyst for the stock to ramp into the $7s and beyond so I went and added some calls. The stock came right up to the 200dma but couldn't push thru. Would like to see that happen today or tomorrow and will look to close some of my calls out for 100% to cover costs when I get the chance:
I added some lotto ISRG calls yesterday after the open, with the stock rallying after better than expected earnings. It opened above its 50dma but found resistance at $220. If it can break that $220 handle today, think the $230s come quick:
I also added NFLX lotto calls after the open with the stock breaking out on their better than feared report and strong sub guidance. The stock found resistance at its 200dma at $281. Think once it breaks that the $300s are a foregone conclusion:
AMLX closed down .50 yesterday. May look to close the last of my calls out today and then look for some Nov strikes to play for a move over $40 in the coming weeks:
Still eyeing TWLO, SPOT, and possibly U for some speculative calls into tomorrow.
Here are the analyst changes of note for today:
| Alteryx price target lowered to $72 from $79 at Morgan Stanley |
| Morgan Stanley analyst Sanjit Singh lowered the firm's price target on Alteryx to $72 from $79 and keeps an Equal Weight rating on the shares. Singh and the rest of the firm's North American Software team are cutting estimates for the infrastructure software group "again" on the view that the weaker environment for will persist through 2023, though they contend that lower investor expectations will "create some tactical opportunities" into the Q3 earnings reporting season |
Lam Research price target lowered to $525 from $535 at Jefferies |
| Jefferies analyst Mark Lipacis lowered the firm's price target on Lam Research to $525 from $535 and keeps a Buy rating on the shares, telling investors he would be a buyer of the shares after the company lowered its 2023 outlook. Lam has declined by 55% year-to-date and has underperformed the S&P 500 by 59% over the past six quarters, noted Lipacis, who adds that his "Semiconductor Playbook says to buy stocks that have materially underperformed and materially lowered expectations." Post the company's September quarter earnings, Street FY24 EPS consensus has declined by 30%, Lipacis added |
| Marqeta to present at next week's Money2020 event, says Wedbush |
| Wedbush analyst Moshe Katri says that Marqeta (MQ) will be presenting at next week's Money2020 event. Based on the conference's schedule, Marqeta will be presenting in the "Announcement" track, on Monday, October 24th at 11:51AM PT. The schedule also suggests the event will also be attended by Block's (SQ) General Manager, Business Strategy and Partnerships, Afterpay & Cash App, the analyst adds. While he doesn't exactly know which announcement Marqeta intends to make, he wanted to flag Block's attendance, especially given the Street's ongoing concerns over its contract renewal, which at this point could be terminated by 2024. Katri has a Neutral rating and a price target of $8 on Marqeta's share |
| Atlassian price target lowered to $375 from $430 at Morgan Stanley |
| Morgan Stanley analyst Keith Weiss lowered the firm's price target on Atlassian to $375 from $430 and keeps an Overweight rating on the shares. Weiss and the rest of the firm's North American Software team are cutting estimates for the infrastructure software group "again" on the view that the weaker environment for will persist through 2023, though they contend that lower investor expectations will "create some tactical opportunities" into the Q3 earnings reporting season |
| Tesla disappoints on pricing, keeps tough production target, says Wells Fargo |
| Wells Fargo analyst Colin Langan notes that Tesla Q3 EPS of $1.05 beat consensus of $1.00, which was mostly driven by lower opex. However, ASPs fell $2K/vehicle quarter-over-quarter on higher China mix and FX, and auto gross margins were impacted by the Berlin/Austin ramp, raw mat costs, and FX. The company maintained its 50% year-over-year 2022 target for production, though it is unclear if there will be enough capacity to reach it, Langan adds. The analyst is "marginally more cautious" post results given the unexpected price decline, tough production targets for 2022, and continued skepticism of the FSD timeline to full autonomy. He has an Equal Weight rating and a price target of $230 on the shares |
| Moderna price target lowered to $145 from $165 at Cowen |
| Cowen analyst Tyler Van Buren lowered the firm's price target on Moderna to $145 from $165 and keeps a Market Perform rating on the shares. The analyst updated his model and while not changing his Q3 estimates, he revised his 2023 Spikevax sales from $12.4B to $8.3B |
| Regeneron price target raised to $750 from $655 at Cowen |
| Cowen analyst Tyler Van Buren raised the firm's price target on Regeneron to $750 from $655 and keeps a Market Perform rating on the shares. The analyst updated his estimates leaving Q3 revenue virtually unchanged, but OpEx was increased resulting in our new EPS estimate of $10.10 |
And here is what I am watching today: AMLX, GWW, U, TWLO, SPOT, ROKU, NFLX, CMG, WING, WIX, and CI.
Let's have a great day!
-JB