The melt higher continued last week as the S&P closed green all 5 days and is near its all-time high. With little economic news this week, there is reason to think the recent momentum continues. It seems any dip is being bought in rapid fashion, like vultures circling around for food.
The futures are slightly red, and are up from the morning lows. Data from China gave folks a reason to be cautious so far as Inflation rose to 3.2% from 2% in January. A trend that could be troublesome if it continues.
If you missed the week ahead last night, it will be in the forum sometime this morning, as it is taking quite a bit of time to get uploaded. Dick Sporting Goods reported earnings this morning that missed but announced a 1 billion share buyback. Outerwear was one of the areas that missed the mark, and may foretell a weak Quarter for Lululemon(LULU). As of now, I will be staying away from the few earnings plays. I will post in chat and twitter if that changes.
Here are the analyst changes today:
GOOG - Google price target raised to $950 from $840 at RBC Capital
RBC Capital expects Google's earnings to increase at a compound annual growth rate of 17% from 2013-2015. The firm predicts that the company's CPC trends will improve in 2013, and it also expects the company to benefit from growing appreciation of YouTube and improving international trends. The firm identifies Google as one of its top three long stocks for 2013
AAPL Apple concerns mounting near-term, says RW Baird
Baird's channel checks show Apple iPad and iPhone5 procurement orders are near the firm's shipment forecast but below the Street's consensus. The firm now expects a higher mix of iPad minis and potentially a lower-end iPhone will negatively impact revenues and margins. Shares are Neutral rated with a $465 price target.
AAPL Apple downgraded to Outperform from Buy at CLSA
CLSA downgraded Apple and lowered its June quarter forecasts to reflect lower iPhone sales and weaker iPad mix. The firm's FY14 EPS estimate goes to $46.62 from $51.72 and its price target is lowered to $505 from $575
American Express and MasterCard expected to beat 2013 estimates, says Nomura
Nomura expects American Express (AXP) and MasterCard (MA) to beat 2013 consensus estimates and for the Street to gradually move higher throughout the year towards its above-consensus outlook. The firm expects American Express's expense control and MasterCard's strong purchase volume growth to lead to out-performance
CRM Salesforce.com price target raised to $215 from $200 at Jefferies
Jefferies raised its price target for Salesforce.com shares following the company's annual filing and maintains a Buy rating on the stock. Jefferies says the filing provides additional data around the company's regional revenue, headcount and expenses.
WLT Walter Energy downgraded to Market Perform from Outperform at BMO Capital
BMO Capital downgraded Walter Energy due to valuation and headwinds from high financial leverage and contracting margins. Price target lowered to $35 from $42.
C Citigroup upgraded to Buy from Neutral at UBS
UBS upgraded Citigroup citing reduced headwinds from Citi Holdings, reduced RWA's which will free up capital, management's new efficiency ratio's, and released capital from the DTA. Price target raised to $62 from $43
Will start the week with a few plays. Still holding SAM, OPEN, SHLD, BNNY, CROX calls and will look to add some more:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
SHLD | CALL | $55.42 | Weekly | 0.22 | 0.20 |
SODA | CALL | $52.50 | Weekly | 0.20 | 0.20 |
Think SODA finally breaks 50 and holds. Think folks are finally starting to understand the Sears story. Will play both for continued moves.
Lets have a great day and start the week off in style!!
- JB