Markets closed mixed on Tuesday, with the Nasdaq closing in the green while the S&P fell .21%. Asia markets tumbled overnight while Europe indexes are in the red this morning although off their lows. U.S. futures are pointing to a mixed open, the Dollar, Oil, and Gold are higher while Yields are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-108/
Stocks opened higher yesterday, only to give back all the gains and then some. A late day push was able to put the Nasdaq in the green for the day but the S&P fell short and is now down for 6 sessions in a row. The US dollar and U.K. bonds remain the story so far this week. This morning the Bank of England said they would be buying back bonds to help calm markets and futures rallied on the news. Will see if that stems the tide today. Futures were weak overnight and the $360 handle on the SPY was breached. That should serve as some support today:
With stocks giving back their morning gains, I went and closed the last of my WYNN calls for nearly 100% and my ROKU calls for some profits. Still like both of these names and may look to add some calls again if the market finds some footing but did not want to lose profits. Think WYNN can make a move over $70:
And ROKU over $65:
As outlined on yesterdays watchlist, I finally added some BJ calls. Think it is a great story and can perform well even if we are in a recession as a trade down play... ie. folks will look to warehouse names and discounters to offset rising prices. Once thru the $77.50 handle it should see $80+ quickly:
Some more great Biotech news after the close yesterday. BIIB announced positive phase 2 data for an Alzheimer's treatment. It should spark many Bio names. BIIB premiums were high into the event. Think BIIB may trade into the low $300s so will be watching for some possible speculative calls.
APRN has now closed higher for 3 straight sessions and maybe ready to get into short squeeze mode. I may actually look to add more strikes here today. There was also some unusual call action yesterday:
Still eyeing WIX, GNRC, SPOT, and U as well.
Here are the analyst changes of note for today:
| Universal Display price target lowered to $150 from $160 at Oppenheimer |
| Oppenheimer analyst Martin Yang lowered the firm's price target on Universal Display to $150 from $160 and keeps an Outperform rating on the shares. In light of recent news and checks, the analyst lowered his sales estimates to below management guidance range for 2022. His new estimates are primarily driven by more conservative expectations for OLED TV and lack of recovery in smartphone market in the second half of 2022 |
| RBC cuts Rivian target, production forecasts but stays Outperform |
| RBC Capital analyst Joseph Spak lowered the firm's price target on Rivian Automotive to $62 from $75 and keeps an Outperform rating on the shares. The analyst says that while "near-term encouraging activity" gives him more confidence in the company's Q4 ramp, he's lowering 2023 estimates on "some changeover factors." Despite "positive near-term developments," Spak lowered his 2023 production forecast for Rivian to 63,500 from 82,500. The company will switch to introduce lithium iron phosphate packs and its new in-house Enduro motor, which will likely cause some downtime and a new ramp will be required, says the analyst. He now forecasts 159,000 deliveries through 2025, down from 182,700 prior and below the consensus estimate of 213,000 |
IBM price target lowered to $112 from $118 at UBS |
| UBS analyst David Vogt lowered the firm's price target on IBM to $112 from $118 and keeps a Sell rating on the shares. The company's consulting revenue growth is likely to slow faster than expected and its margins are unlikely to expand above guidance in 2022, the analyst tells investors in a research note. Vogt adds that IBM also faces incremental FX headwinds relative to mid July, estimating that the decline in key functional currencies like the Yen, Euro, and British Pound negatively impacting IBM's top line by at least an incremental 100bps in Q3 |
Jefferies starts Generac with a Hold, sees risk to 2023 outlook |
| As previously reported, Jefferies analyst Saree Boroditsky initiated coverage of Generac with a Hold rating and $190 price target. While Boroditsky calls Generac "a high-quality industrial company that has historically compounded earnings through increased penetration of home standby generators," the analyst sees risk to the 2023 outlook given that demand for generators accelerated during the pandemic and a decline into 2023 is being modeled given lower outages, a weaker housing market and a pull forward in demand. Boroditsky, who forecasts $10.42 in 2023 EPS versus the consensus of $13.91, expects negative EPS revisions |
And here is what I am watching today: BIIB, OLED, WIX, GNRC, SPOT, BJ, U, LVS, APRN, ICPT, CI, CMG, HUM, TRIP, SAGE, and PTCT
Let's have a great day!
-JB