Markets rallied on Thursday, with the S&P adding nearly 1% as earnings continue to come in strong. Both the Nasdaq and S&P closed at all-time highs. Asia markets closed mixed overnight while Europe indexes are in the red this morning. U.S. futures are pointing to a lower open, mostly due to disappointing AAPL and AMZN results. The Dollar, Yields, and Oil are higher while Gold is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/friday-morning-reads-209/
Markets are pointing to a pullback this morning on the heels of weaker than expected earnings reports from AMZN and AAPL. Input costs, including labor, are weighing on profits. While logistical issues will likely provide a drag on revenues. Nothing new here and not a huge surprise considering that has been a major theme this earnings season.
SPOT rallied for the second session in a row after a decent earnings report that showed their Podcast strategy is starting to pay off. The stock came up to $293 before pulling back and is lower in the pre-market. May use the weakness to add some strikes into next week fora move over $300 and likely $310 or so:
JYNT is setting up nicely into its earnings next Thursday. May look at some Nov $110 calls for some premium build into the report:
DXCM reported a great Q after the close yesterday and should bode well for TNDM which reports next week. May look at some speculative lotto calls today on both and possibly look at some TNDM strikes into next week to play for a move to $145+:
DXCM:
TNDM:
Also watching OLED into next week, The stock has fallen from its highs and could see a nice bounce back to $190 or so(earnings next week):
Have been watching YEXT the past week or so. It has been finding a bid but has not been moving fast enough for the calls. Will continue to watch as I think the $15 Nov and Dec strikes may pay here:
And finally, a lotto today could be BYND,. Impossible Foods is rumored to be valued at $7 bil. BYND grows at a much faster clip and should warrant a higher valuation. Not saying it gets to $120 or so but could see the gap fill soon, will be watching for possible calls opportunities:
It is the last trading day of October, and outside of a massive collapse, it will be a strong month - the S&P is up 6.8% so far. Next week the earnings season continues and we get the Fed on Wednesday:
Here are the analyst changes of note for today:
| O'Reilly Automotive price target raised to $640 from $585 at DA Davidson | |
| DA Davidson analyst Michael Baker raised the firm's price target on O'Reilly Automotive to $640 from $585 but keeps a Neutral rating on the shares after its Q3 earnings beat. The analyst says the quarter highlighted the "stickiness" of the auto parts business in the post pandemic world, along with the larger than expected impact of inflation to their 5.5% comp. O'Reilly is seeing supply chain and labor issues like most companies but has been able to pass most of it through, Baker adds, stating that the company has also indicated that it may be approaching "the light at the end of the tunnel for some of these factors | |
| Compass Point upgrades LendingClub to Buy, nearly quadruples price target | |
| As previously reported yesterday, Compass Point analyst Giuliano Bologna upgraded LendingClub to Buy from Neutral with a price target of $55, up from $14, after the company reported Q3 net income of $27.2M that was "well above" consensus and beats the pace needed to hit the company's previous FY21 net income guidance. LendingClub also increased FY21 originations, revenue and net income guidance, noted Bologna, who rolled out a new model and valuation framework and argued that "the market still misunderstands" the company's return profile, growth and earnings upside potential | |
| Apple still positioned for mid-teens EPS growth in FY22, says Evercore ISI | |
| After Apple reported "mixed" September quarter results largely due to supply chain issues and estimated that $6B of demand wasn't met due to supply challenges across their hardware ecosystem, Evercore ISI analyst Amit Daryanani noted that the company guided to "very solid" year-over-year growth in the December quarter despite supply challenges that are seen being even worse than in the just-completed quarter. The analyst, who see Apple remaining well positioned to sustain mid-single digit sales and mid-teens percentage EPS growth in "FY22 and beyond," keeps an Outperform rating and $180 price target on Apple shares | |
| Overstock.com price target raised to $157 from $130 at DA Davidson | |
| DA Davidson analyst Tom Forte raised the firm's price target on Overstock.com (OSTK) to $157 from $130 and keeps a Buy rating on the shares after its Q3 earnings beat. The company's Q4 comps will get easier after two quarters of challenging triple-digit comparisons, and its revenue performance should see an improvement after the 3.9% top-line dip in Q3, the analyst tells investors in a research note. Forte adds that Wayfair's (W) historic 2.0--times enterprise value to expected sales multiple should also be achievable for Overstock as he raises his price target on its e-commerce business to $128 per share from $101 | |
| Starbucks price target lowered to $130 from $140 at Oppenheimer | |
| Oppenheimer analyst Brian Bittner lowered the firm's price target on Starbucks to $130 from $140 and keeps an Outperform rating on the shares following the quarterly results. Strategic investments, cost inflation, and lapping non-recurring benefits are driving measurable margin deleverage in 2022 despite a quite healthy sales outlook, Bittner tells investors in a research note | |
And here is what I am watching today: OLED, DXCM, TNDM, SPOT, BYND, JYNT, IRBT, TREE, ABMD, and SSYS.
Let's have a Great DAY!
-JB