Make that three red days in a row, as the markets struggled to stay green into the afternoon and found some weakness after the FOMC minutes were released. Folks continue to use the infamous “Taper” as a reason for markets to go up or down.
The CPI and PPI that came out yesterday and today both continue to show a lack of inflation, the fact of which continues to help the move down in gold. I think the yellow stuff will touch $1200 at some point in the coming days and I also stick to my $1100 target on it before the year is out.
Jobless claims also came in lower than expected this morning, which has given a bid to the U.S. dollar. Futures have come off the highs as well, but they're still up nicely. As a result, I'd love the SPY to hold $178 today. Despite yesterday's gyrations the VIX remained somewhat flat, a sign that these pullbacks are nothing more than some profit taking.
SHLD did report earnings this morning and that's somewhat of a surprise, since the date was never confirmed. The numbers came in within the pre-released range. The stock is down pre-market and I'll hold my December 85 calls, which will take a beating. I won't look to get into more SHLD unless it comes down to around $50 or so.
3-D stocks continued to get pummeled and they look about ready to bounce, but trying to time that bounce can be hazardous to your account! Quite a few analysts are out defending the stocks, so maybe they'll find a bottom today. I'll be watching SSYS for an entry point.
Here are some of the analyst changes of note for today:
JCP J.C. Penney reiterated as a Sell at UBS |
UBS maintains its Sell rating on J.C. Penney despite near-term momentum given cash burn and valuation concerns. The firm does not expect J.C. Penney to have positive EBITDA until 2015 and believes shares are trading at a premium to its $7 price target |
GMCR Green Mountain FY14 guidance conservative, says Buckingham |
After Green Mountain reported stronger than expected Q4 results, Buckingham thinks the company is poised for significant margin expansion. The firm believes the stock has minimum downside, while investor sentiment towards the name should improve as market share losses subside or reverse in FY14. It keeps a Buy rating on the shares |
LOW Lowe's weakness a buying opportunity, says RW Baird |
Baird said the weakness in Lowe's is a buying opportunity as their positive thesis remains intact. The firm sees demand in the sector continuing to recover, higher ticket projects gaining momentum, and expenses improving next year. Shares are Outperform rated with a $56 price target |
SSYS Stratasys longer term fundamentals remain unchanged, says Piper Jaffray |
After hosting investor meetings with management, Piper Jaffray says Stratasys remains very positive with respect to the strength of its business. The firm believes the company's longer term fundamentals remain unchanged and says it remains a buyer of the stock following the recent pullback. Piper keeps an Outperform rating on Stratasys with a $131 price target |
VJET Voxeljet vendor financing concerns priced into shares, says Citigroup |
Citigroup believes investors concerns around Voxeljet's loans to customers are priced into the stock following the recent 30% pullback. Citi thinks vendor-financed transactions are not typical for Voxeljet, as the company only financed three deals out of 52 printer sales. However, the firm expects investors to now have a heightened sensitivity to financed transactions. Citi believes Voxeljet's long-term opportunity remains on track and keeps a Neutral rating on the stock with a $55 price target |
QCOM Qualcomm price target raised to $85 from $75 at Macquarie |
Macquarie reiterates its Outperform rating on Qualcomm following yesterday's analyst day and believes the company's continued technology leadership and broad array of applications give the company a leading position as the industry shifts to cloud computing. |
SNDK SanDisk weakness would be a buying opportunity, says Susquehanna |
Susquehanna believes SanDisk could see near-term choppiness but would use any weakness as a buying opportunity as they remain positive on the longer-term earnings. The firm believes the overall SSD revenue stream can help scale operating cost which could provide another driver for EBIT margin expansion. Shares are Positive rated with a $80 price target |
GM General Motors shares should be bought at current levels, says Buckingham |
Buckingham expects General Motors' earnings and cash flow to be boosted by the launch of its K2XX platform. The firm thinks the stock could react favorably to the company's November sales results, as it estimates that its sales are outperforming the industry this month |
CBRL reports earnings next Tuesday, so I'll be looking for a position. I may try to time a bounce in SSYS as well:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
CBRL | CALL | $130.00 | January | 0.35 | 0.30 |
SSYS | CALL | $145.00 | December | 0.50 | 0.45 |
Let's have a great day!!
- JB