Stocks closed mostly lower on Thursday, with the S&P ending the session down .61% as META earnings weighed, while the DOW closed in the green with CAT earnings being the catalyst. Asia markets tumbled overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-129/
It was a choppy session on Thursday, with stocks trying to continue their multi-day rally only to find pressure and close near the lows. After the bell there was another round of mega-cap earnings. AMZN and AAPL reported with AMZN missing estimates while AAPL bested estimates. It almost feels like this quarters earnings season is a'pulling off the band-aid moment'... time will tell.
The SPY tried, but failed,. to close above the 50dma for the first time since early September. Would love to see a reversal this morning and a close back above:
The names I had on watch yesterday were choppy, and choppy equals premium erosion. Not what you want to see when adding calls. Hopefully today the markets can find a trend.
DXCM reported a great Q yesterday after the close and the stock is rallying this morning, Only monthly strikes so tough to find a decent risk/reward entry. Do think this can trade north of $120 so may look at some calls to play for that move:
TNDM is a name that could trade higher in sympathy to DXCM. I really like the TNDM story but it had been beaten up as of late with the rest of the market. I may look at some calls today to play for their earnings next week. Think any decent quarter and the stock is well above of $60:
ROKU and PYPL are two names that also report earnings next week. I think both can see some nice squeezes after their report and offer some nice premium build opportunities. May look to add some calls today:
PYPL:
Here are the analyst changes of note for today:
| McDonald's price target raised to $300 from $276 at Truist |
| Truist analyst Jake Bartlett raised the firm's price target on McDonald's to $300 from $276 and keeps a Buy rating on the shares. The analyst cites the company's Q3 earnings beat with accelerating same store sales and expanding franchise margins. Bartlett further notes that he has increasing confidence that McDonalds will be able to gain market share despite a weakening macro environment |
| Vertex Pharmaceuticals price target raised to $330 from $315 at Cowen |
| Cowen analyst Philip Nadeau raised the firm's price target on Vertex Pharmaceuticals to $330 from $315 and keeps an Outperform rating on the shares. The analyst said its pipeline is maturing with 3 non-CF programs in pivotal development and he expects the company to outperform as CF revenue grows and its pipeline matures |
| Deckers Brands price target lowered to $393 from $415 at Cowen |
| Cowen analyst John Kernan lowered the firm's price target on Deckers Brands to $393 from $415 and keeps an Outperform rating on the shares. The analyst said expectations for UGG assumes a deceleration into the key Q3 period and his estimates are lowered slightly with less confidence in upside/bull case to consensus estimates into 2024 |
| Amazon price target lowered to $140 from $175 at Morgan Stanley |
| Morgan Stanley analyst Brian Nowak lowered the firm's price target on Amazon.com to $140 from $175 and keeps an Overweight rating on the shares. Amazon's Retail and AWS businesses are slowing faster than expected, which leads to slower realization of volume-based efficiencies and EBIT growth, but Nowak believes these efficiencies will still come in 2023 as volumes grow. He sees Amazon being "strategically positioned to take share within retail and the enterprise spend ecosystems" through and post an economic downturn, Nowak added |
And here is what I am watching: TNDM, DXCM, ROKU, TWLO, PYPL, SPOT, CMG, WING, DECK, AMLX, GWW, U, TWLO, NFLX,, WIX, and CI.
Let's have a great day!
-JB