Markets closed higher to start the week, with the S&P reversing morning losses to close up 1.19%. Asia markets closed lower overnight while Europe indexes are also in the red this morning. U.S. futures are pointing to a lower open while the Dollar, Yields, Oil, and Gold are all also lower.
And this is what UPB is reading this morning:
Stocks reversed early morning losses to close higher on Monday as the US Dollar weakened and Yields fell. Today we get earnings from some of mega-cap tech names - MSFT and GOOGL will report after the bell. Earnings and guidance will be important but also will want to see the impact of the stronger US dollar on MSFT earnings. Any inline numbers and decent guidance and think the market will continue its bounce. Misses and it could be a rough week. The SPY came up and tested that $380 handle before closing at $378.87. Looks like key resistance for now:
As outlined on yesterdays watchlist, I went and added some SPOT calls. The stock was spiking after news AAPL was raising prices for its AAPL+ service and rumors of another TikTok ban. They report earnings after the close today and think any decent report puts the stock into the $105+ territory. I was able to close some of my calls out yesterday for some profits and will look to close more today to cover costs and hold the rest into the report:
Was watching DECK, GNCR, DXCM, and TWLO yesterday for other entries.
DXCM rallied over 3% yesterday but the spreads on the calls made it difficult to find an entry. Will be watching again today as I think this trades north of $100 soon:
DECK closed pretty much flat yesterday. Still looking to add some call ahead of earnings on Thursday:
GNRC has been absolutely punished since a positive piece in Barron's a few weeks ago. The chart is pinching and could be the start of a nice reversal to $120 or so. May look to add some calls today:
SO much negativity on Fintwit as of late... think this can be construed as a positive for markets. So many of the perma-bears were pounding the table on a crash at the Covid lows in March of 2020. Not saying the same bounce is coming but seems that downside here is just too easy to rationalize... ie. meaning market heads higher:
Here are the analyst changes of note for today:
Nvidia price target lowered to $155 from $170 at Needham |
| Needham analyst Rajvindra Gill lowered the firm's price target on Nvidia to $155 from $170 and keeps a Buy rating on the shares as part of a broader research note on Semiconductors and Semiconductor Equipment. Semiconductor stocks won't find a bottom until the Street reflects negative revenue and EPS growth Y/Y in 2023, similar to prior cycles, the analyst tells investors in a research note, noting that consensus estimates is still forecasting a positive rate of growth. While the group should continue to deliver strong prints during the Q3 earnings season, its relative strength over the past few quarters is expected to wane due to order cancellations and order rescheduling, Gill adds, stating that these companies will be supply constrained over the next six months. The analyst also believes that Auto and Industrial weakness will begin showing up in numbers during the second half of 2023, warning that playing these stocks over the next couple quarters is going to be tricky |
Piper says second extension of USITC deadline 'frustrating' for Masimo investors |
| Piper Sandler analyst Jason Bednar noted that the judge with the U.S. ITC overseeing Masimo's (MASI) case against Apple (AAPL) issued an order yesterday extending the timeline by seven weeks for the initial ruling, calling a second extension of the USITC deadline "frustrating for both MASI and investors." The target date for a decision from the Commission at the ITC and the conclusion of the case has similarly been extended by seven weeks to April 19 of next year, noted Bednar, who has a Neutral rating and $136 price target on Masimo share |
Qualtrics price target lowered to $16 from $25 at Evercore ISI |
| Evercore ISI analyst Kirk Materne lowered the firm's price target on Qualtrics to $16 from $25 and keeps an Outperform rating on the shares. Qualtrics reported "solid" Q3 results that were "better than feared" and the company "deserves credit for delivering upside," but he believes the bar was "fairly low" heading into Q3 results and there is "still plenty to debate." While Qualtrics does not guide to total billings, growth of about 17% in the quarter decelerated materially from about 30% last quarter and management indicated that this is "a reasonable starting point in terms of overall growth rate of the business going forward," Materne said |
| Mitek Systems assumed with a Buy at Jefferies |
| Jefferies analyst Stephanie Moore assumed coverage of Mitek Systems with a Buy rating with a price target of $13, down from $17. She is positive on the business transformation to ID verification and thinks Mitek can continue to fuel organic growth investments in the identity space through the company's "more mature and profitable deposit business," Moore tells investors |
| Qorvo price target lowered to $100 from $118 at Needham |
| Needham analyst Rajvindra Gill lowered the firm's price target on Qorvo to $100 from $118 and keeps a Buy rating on the shares as part of a broader research note on Semiconductors and Semiconductor Equipment. Semiconductor stocks won't find a bottom until the Street reflects negative revenue and EPS growth Y/Y in 2023, similar to prior cycles, the analyst tells investors in a research note, noting that consensus estimates is still forecasting a positive rate of growth. While the group should continue to deliver strong prints during the Q3 earnings season, its relative strength over the past few quarters is expected to wane due to order cancellations and order rescheduling, Gill adds, stating that these companies will be supply constrained over the next six months. The analyst also believes that Auto and Industrial weakness will begin showing up in numbers during the second half of 2023, warning that playing these stocks over the next couple quarters is going to be tricky |
And here is what I am watching today: SPOT, DXCM, DECK, AMLX, GWW, U, TWLO, SPOT, ROKU, NFLX, CMG, WING, WIX, and CI
-JB