Hope everyone had a great weekend. Futures are in the red this morning, with Japan being the lone shining star up another 1% overnight. Retail sales numbers are due today, and may help the market find some direction. We have WMT, DE, CSCO, and others reporting this week. Do not have any on the watchlist today, but will have some for tomorrow.
There continues to be talk that the fed has figured out its plan to end QE, but there is not date when they plan on slowing down the purchases. Here is piece on it: http://www.moneynews.com/StreetTalk/Fed-officials-withdraw-QE/2013/05/12/id/504053 The original article was in the WSJ but don’t want to post a link not everyone can read. Just something to keep an eye on, as the pullback(and subsequent buy the dip) was caused by the so called rumor. The CPI number this week will be an important one, as any signs of deflation may spur some more accommodative measures by the Fed.
I did the Week Ahead Webinar last night, but did not hit the record button. In the future will have to figure out a back up program just in case. Or maybe someone remind me to record!
Also, the chatroom was down for maintenance over the weekend. It is possible you may need to download the desktop app if you are unable to get in: http://host13501.123flashchat.com/sally/optionchat.zip
Here are the 4 stocks i spoke about and round out the ‘stocks i really like’: $SHLD , $OPEN, $BIDU, $WU.
I have positions in all 4 and will look to get more $SHLD this morning. WU was in barrons this weekend and is getting a nice boost on the article: http://www.reuters.com/article/2013/05/12/us-westernunion-shares-idUSBRE94B09W20130512
Here are some of the analyst changes today:
DDD 3D Systems price target raised to $50 from $45 at Canaccord
Canaccord believes 3D systems can deliver consensus upside driven by strong printer and services revenue and for multiple expansion as the company commercializes Bespoke in 2H 2013. Shares are Buy rated.
BA Boeing price target raised to $120 from $100 at Sterne Agee
Sterne Agee increased its price target on Boeing as the firm expects the company to benefit from strong commercial aircraft demand and a book to bill ratio that will be above 1.0 in 2013 and 2014. The firm thinks the company's stock could rise 50% by 2015 and it keeps a Buy rating on the shares.
Yum! Brands China comps likely bottomed in Q1, says Oppenheimer
After Yum! Brands reported in-line April China comps of down 29%, Oppenheimer believes that the company's China comps likely bottomed in Q1 as the firm doesn't expect the avian flu outbreak in China to worsen. The firm expects Yum! to meet 2013 expectations, and it thinks the company could rebound significantly next year. The firm reiterates an Outperform rating on the stock.
BBRY BlackBerry Q10 sell through looks healthy, says RBC Capital
After conducting checks, RBC Capital believes that BlackBerry's Q10 will benefit from sales to professionals and enterprise users. The firm doesn't see major near-term negative catalysts for the company but keeps a Sector Perform rating on the shares.
GOOG Google price target raised to $950 from $875 at BofA/Merrill
BofA/Merrill continues to see several 2H 2013 catalysts for Google that include the Enhanced campaign rollout, Motorola product launches, YouTube visibility, and traction in product listings ads. Shares are Buy rated.
CSCO Cisco upgraded to Market Perform from Underperform at FBR Capital
FBR Capital upgraded Cisco to Market Perform citing valuation and better than expected SDN overlay solutions traction. The firm raised its price target for shares to $19 from $17.
KORS Michael Kors added to Best Ideas List at Morgan Stanley
Morgan Stanley added Michael Kors to its Best Ideas List given positive store checks, upbeat management meetings, beatable SG&A forecasts, and positive Q4 data points. Shares are Overweight rated with a $71 price target.
CTRIP Ctrip.com downgraded to Neutral from Buy at Goldman
Goldman downgraded Ctrip.com due to valuation. Price target raised to $29 from $26
Here are the tickers I am looking at for the open:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
SHLD | CALL | $60.00 | Weekly | 0.43 | 0.36 |
BIDU | CALL | $105.00 | Weekly | 0.10 | 0.08 |
OPEN | CALL | $65.00 | Weekly | 0.30 | 0.25 |
I have quite a few May positions that will be expiring Friday, so will be small each day pending market conditions..ect.
Lets have a great day!!
- JB