Markets are coming off a week that saw the S&P lose over 3% and close down 4 of the 5 sessions. Asia stocks closed mixed overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a bounce while the Dollar, Yields, Oil, and Gold are all higher.
There is not much in the way of market moving catalysts this week. AAPL will host an event tomorrow at 1pm where it is expedited they will announce their new iPhone, along with other updates. Earnings season continues to wind down with names like $DOCU, $GME, and $RH reporting.
Here are the implied moves for earnings next week:
3 of the 4 sessions last week saw stocks reverse morning gains to close sharply lower. Will be interesting to see if the SPY can hold its ground finally. That $395 handle looks like resistance, so would want to see a close above that soon while that $390 handle has held up like a champ so far. If there is a reversal today, that $390 needs to hold or fear we test $380 this week:
I am holding DUST and TZA calls that expire Friday. May look to cut them loose today and revisit if the SPY holds its gains past noon.
APRN rallied into the close on Friday. Still think this will take off at some point. I wrote some of my thoughts on the name yesterday:
Still a great looking wedge here that will resolve shortly:
AMLX tumbled Friday after the briefing documents for the AdCom meeting were released and showed some were skeptical on whether the drug can be effective against ALS. Seems odd they would waste more time on another AdCom if there was zero chance of approval. The stock will be halted tomorrow. Hoping for a favorable vote and maybe the stock can trade north of $40. Won't add any more calls though:
Still holding the rest of my freebie ICPT calls and may start to nibble some later dated strikes:
RH reports earnings after the close on Thursday. There is some room back to $200 on any miss or downbeat guidance. May look to nibble some speculative puts today with the plan to lock some in to cover costs before the close Thursday:
And lastly, still eyeing EVH for some calls to play for a move over $40:
Here are the analyst changes of note for today:
| Skillsoft price target lowered to $6 from $11 at B. Riley |
| B. Riley analyst Raj Sharma lowered the firm's price target on Skillsoft to $6 from $11 and keeps a Buy rating on the shares ahead of the Q2 results on September 7. The analyst says the selling sponsor overhang impacts the valuation despite strong business metrics |
Tidewater resumed with an Outperform at Evercore ISI |
| Evercore ISI analyst James West resumed coverage of Tidewater with an Outperform rating and $42 price target. Tidewater's acquisition of Swire Pacific Offshore created the industry's largest fleet of OSVs, said West, who views Tidewater as "one of the biggest beneficiaries" of the offshore oil and gas market being in the early innings of what he expects to be "a long and strong upcycle. |
| Ciena price target lowered to $64 from $67 at B. Riley |
| B. Riley analyst Dave Kang lowered the firm's price target on Ciena to $64 from $67 and keeps a Buy rating on the shares post the fiscal Q3 report. The company's results continue to be adversely impacted by supply chain headwinds despite strong demand, Kang tells investors in a research note. However, he views Ciena as an "ideal stock to to own" into a recession |
| UBS upgrades Newmont to Buy as a 'deep value opportunity' |
| UBS analyst Cleve Rueckert upgraded Newmont to Buy from Neutral with a price target of $50, down from $78. The analyst states that even with Cost Applicable to Sale - or CAS - forecasts 5% above the high end of the company's long-term guidance, he believes that Newmont should be able to continue paying an annual dividend of $2.20 per share, which is within its commitment to return 40%-60% of excess free cash flow. Rueckert adds that the market is pricing in a potential 25% dividend cut, which is "too bearish", according to his projections. |
| Dollar Tree price target raised to $176 from $171 at JPMorgan |
| JPMorgan analyst Matthew Boss raised the firm's price target on Dollar Tree to $176 from $171 and keeps an Overweight rating on the shares after hosting meetings with management. The shares are trading at 14 times estimates fiscal 2024 earnings, representing a 4-5 turn discount relative to the company's pre-pandemic average, Boss tells investors in a research note |
And here is what I am watching: EVH, RH, ICPT, LULU, ULTA, CMG, TZA, PANW, SAGE, TWLO, SPOT, ROKU, NFLX, and SPLK.
Let's have a great day!
-JB