HAPPY HALLOWEEN!!
So much for another boring session on Wednesday, as the FOMC statement had the markets bouncing around before selling picked up. It seems that $176 held on the SPY, so we'll see what happens today after the four-day green streak finally came to an end.
The USD found some support as well and it's broken above the $80 resistance area for the first time in a few weeks. I like the USD to find some strength and I also think that bodes well for the markets down the road. Obviously, that's not so good for gold and that precious metal is down nearly 2%. If it breaks $1320 per ounce its slide could pick up speed.
Some big earnings reports came in after the close yesterday, with both EXPE and FB beating estimates. The two stocks were up over 10% at certainpoints but the lovely CFO at Facebook spoke about teen use declining and that was enough to have folks fade the stock. V also reported some in-line earnings and a huge buyback but it wasn't enough to spark shares. Additionally, SAM reported some good numbers and a lowered EPS guidance range. I'm not sure how this stock reacts but I'm hoping for it to be green. We shall see, I suppose.
Here are the analyst changes of note for today:
GM General Motors price target raised to $50 from $45 at RBC Capital |
After GM reported higher than expected EPS ex-items but lower than expected revenue, RBC Capital thinks the company's North American division can reach 10%+ margins within the next few years. The firm reiterates an Outperform rating |
LULU lululemon shares risky, says Buckingham |
After lululemon announced that it had hired a new Chief Product officer, Buckingham is concerned that the company may have lost its edge after the position was vacant for some time, and that the new head merchant's decisions may not resonate with consumers. The firm also believes that the market could be disappointed by the company's new CEO when the hiring is announced, and it recommends that investors reduce their position in the company |
WDC Western Digital weakness a buying opportunity, says Brean Capital |
Brean Capital said to use the weakness in Western Digital as a buying opportunity. The firm calls it one of its top two picks citing expectations for improvements in gross margins, favorable product mix, and incremental earnings power. Shares are Buy rated with an $85 price target |
FB Facebook weakness a buying opportunity, says JPMorgan |
JPMorgan believes the post-earnings pullback in Facebook shares creates a compelling buying opportunity and raised its price target for the stock to $62 from $53. The firm says overall teen usage remains stable and keeps an Overweight rating on the stock |
SODA SodaStream downgraded to Sell from Hold at Stifel |
Stifel downgraded SodaStream to Sell due to revenue shortfalls in the Americas, uninspiring sell-through data, increased S&P spend per incremental unit sold, and return declines in marketing. The firm sees fair value at $40 |
FB Facebook price target raised to $60 from $54 at Oppenheimer |
Oppenheimer increased its price target on Facebook after the company reported stronger than expected Q3 results. The firm thinks that ad volumes could rise in Q4, assuming usage of the site continues to grow. It keeps an Outperform rating on the shares |
SBUX Starbucks price target raised to $86 from $80 at Oppenheimer |
Oppenheimer increased its price target on Starbucks after the company reported higher than expected EPS, as the firm thinks the company deliberately kept future expectations at reasonable levels, despite the company's new positive catalysts. Oppenheimer keeps an Outperform rating on the stock |
EXPE Expedia price target raised to $70 from $65 at Cantor |
Cantor increased its price target on Expedia after the company reported stronger than expected Q3 results. The firm keeps a Buy rating on the stock |
FSLR First Solar Q3 results a potential negative catalyst, says Deutsche Bank |
Deutsche Bank believes First Solar's Q3 results could act as a potential negative catalyst given the recent rally in shares and risk of project push-outs. The firm keeps a Hold rating on the stock with a $42 price target |
EXPE Expedia price target raised to $73 from $66 at Benchmark Co. |
Benchmark Co. raised its price target for Expedia to $73 following the company's better than expected Q3 results and keeps a Buy rating on the name |
I bought some DUST calls to play off the stronger dollar and I may look to add more if gold starts to weaken towards $1320. The last time EXPE reported strong numbers like these PCLN jumped 8-plus percent. I'm not saying that happens today but it may be worth a lotto, as it can really take off if it breaks $1100.
Here are the strikes I'm watching:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
PCLN | CALL | $1,120.00 | Weekly | 0.50 | 0.50 |
DUST | CALL | $31.00 | Weekly | 0.25 | 0.25 |
Lets have a great day!
- JB