Markets closed lower to start the week with the S&P falling 1% in a choppy session. Asia markets closed mostly higher overnight while Europe indexes are in the green. U.S. futures are pointing to a higher open, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning:
And a nice read from UPB if you missed:
Stocks tried to reverse morning lows into the green yesterday, but sellers came in and the markets closed right near lows. The stronger dollar and higher yields continues to be the most talked about catalysts for the recent downside move. Here is a piece from Marketwatch:
To me the irony is that if the US dollar was in free-fall folks would be saying the same thing. Give it a another few weeks and there will be another 'catalyst'. I would argue that a stronger US dollar should be a boon to many companies, giving them more purchasing power. But an argument for another day...
WYNN was gapping higher yesterday, with positive Macau news providing a lift. I went and added some calls after the open and was able to lock most of them in for some nice profits. If it can get thru that $70 handle think $72.50 or so its possible. If not, will look to close the rest of the calls and revisit:
Later in the day I added some ROKU calls. If the market finds any footing today and tomorrow think $65+ comes quick. Will use the $57 handle as a possible stop:
I was eyeing GNRC calls yesterday but the premiums were too expensive for me on a risk/reward basis. Yesterday was its highest volume session of the year and could bode well for more highs here as it looks like sellers were churned. Will be watching again today for a possible entry:
WIX closed flat yesterday despite the market weakness. If it holds $72 today will look to add some calls for a move to $85+ in the coming weeks:
U is back on watch here after falling nearly 40% since August. Think $35 can come again quick once the sellers are gone:
BJ is opening their first location in Indiana this week. I have always loved the BJ story and think it can be to Costco what Lowe's is to Home Depot and become a national juggernaut at some point. It held the 50dma and looks set to retest the all-time highs soon. May look at add some calls:
And lastly, SPOT has fallen for 7 straight sessions. If it holds today think a move back over $95 and possible $100 comes quick:
Here are the analyst changes of note for today:
| Simon Property price target lowered to $114 from $119 at Evercore ISI |
| Evercore ISI analyst Steve Sakwa lowered the firm's price target on Simon Property to $114 from $119 and keeps an Outperform rating on the shares. A third straight 75 point rate hike from the Fed was "expected," but the continued hawkish stance toward inflation spooked the market and REITs fell nearly 6.5% and "the selling continued unabated on Monday across the REIT sector," the analyst said. In this context, the firm is making another series of revisions to their interest rate forecasts and in addition to this macro change, which negatively impacts valuation, they have trimmed "targeted" AFFO multiples across the board in their REITs coverage, the analyst tells investors |
| Tanger Factory price target lowered to $15 from $17 at Evercore ISI |
| Evercore ISI analyst Samir Khanal lowered the firm's price target on Tanger Factory to $15 from $17 and keeps an In Line rating on the shares. A third straight 75 point rate hike from the Fed was "expected," but the continued hawkish stance toward inflation spooked the market and REITs fell nearly 6.5% and "the selling continued unabated on Monday across the REIT sector," the analyst said. In this context, the firm is making another series of revisions to their interest rate forecasts and in addition to this macro change, which negatively impacts valuation, they have trimmed "targeted" AFFO multiples across the board in their REITs coverage, the analyst tells investors |
| Domino's Pizza price target lowered to $362 from $410 at Cowen |
| Cowen analyst Andrew Charles lowered the firm's price target on Domino's Pizza to $362 from $410 and keeps a Market Perform rating on the shares. The analyst said he remains on the sidelines and is increasingly cautious given industry checks suggesting a plateauing of driver staffing levels in 3Q, after slightly improving in 2Q22, and risk that 2023 openings trail 6%-8% long-term guidance |
Micron price target lowered to $65 from $80 at JPMorgan |
| JPMorgan analyst Harlan Sur lowered the firm's price target on Micron Technology to $65 from $80 and keeps an Overweight rating on the shares. The analyst reduced estimates on "broadening" demand and selling price weakness |
| Perficient upgraded to Buy from Neutral at Alliance Global Partners |
| Alliance Global Partners analyst Brian Kinstlinger upgraded Perficient (PRFT) to Buy from Neutral with a price target of $85, down from $100. Although the analyst expects the company's revenue growth will slow, he still sees double-digit organic revenue growth "given the still solid demand for digital transformation services." Accenture (ACN), one of Perficient's largest competitors, highlighted that digital transformation is in the early stages and demand for these types of services remains strong. This is bullish for Perficient given it accounts for the majority of its business, Kinstlinger tells investors in a research note. He believes the shares are trading toward the low-end of the historical range and finds the stock's risk/reward as favorable |
And here is what I am watching today: WIX, GNRC, SPOT, BJ, U, LVS, APRN, ICPT, CI, CMG, HUM, TRIP, SAGE, and PTCT
Let's have a great day!
-JB