Markets rallied on Wednesday, with the S&P adding 1.84% while the Nasdaq soared over 2%. Asia markets closed mostly higher overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a slightly lower open as I write this, the Dollar and Yields are lower while Oil and Gold are higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-94/
And a nice read from UPB:
Stocks found buyers yesterday, with no true catalyst to speak of outside of Fed Vice-Chair Brainard's comments. This morning we got the ECB decision, where they raised their rates .75% and hiked up their inflation expectations. The $390 handle held up again like a champ on the SPY yesterday and now we are nearing that $400 resistance. If the SPY comes up to that $400 handle and reverses today I may look at some speculative puts for a play back under $395 into tomorrow:
AMLX had their AdCom yesterday and it seemed to be more focused on trying to meet an unmet need as opposed to the efficacy of their drug for ALS. I think if there is even a 10% chance their drug slows down ALS, then it should be approved and left up to those with ALS to decide if they want to take it. Needless to say the AdCom voted 7-2 in favor:
This does not mean AMLX got FDA approval, but usually a positive AdCom vote equals FDA approval. Their PDUFA date is September 29th so we should find out around then if the FDA approves their drug for ALS. The stock is gapping this morning and my Oct $35s should be back to life... think maybe $4-5. I may actually look to close the position at the open depending on premiums and be done with it, though the stock could melt higher for the next few weeks ahead of the FDA decision.
It is a big day for APRN, after soaring 19% on Wednesday it will need to have some continuation today to break out of that wedge and confirm a move into the $8s and beyond in the coming days. That $7.48 will be the key breakout spot:
I added PETQ calls as outlined on yesterdays watchlist. Think the stock is headed north of $15 in the coming weeks. Not only did the company announce a $30 million share buyback program but the President bought shares on Tuesday:
The pinch has just started:
I was looking to add some puts on RH for some premium build into earnings but the stock has been resilient. Likely will pass on adding anything into earnings today and revisit tomorrow:
$16.30 has been some key support for ICPT the past few weeks. Hopefully this last test is the bottom and it can start to move back into the $20s:
EVH had a solid session. The Oct 45s look interesting on a risk/reward basis so may grab those this morning after the open:
Here are the analyst changes of note for today:
| ubSpot price target lowered to $360 from $440 at Raymond James |
| Raymond James analyst Brian Peterson lowered the firm's price target on HubSpot to $360 from $440 and keeps a Strong Buy rating on the shares following the company's user conference and analyst day. Peterson thinks the stock decline following updates on key growth drivers and products is likely overdone, and doesn't view the pace of growth investments or cyclical pressure on upsell as thesis-changing dynamics, he tells investors in a research note. Peterson sees a long runway for growth, consistent innovation and market leadership position in the mid-market |
Zillow price target raised to $50 from $48 at Jefferies |
| Jefferies analyst John Colantuoni raised the firm's price target on Zillow to $50 from $48 and keeps a Buy rating on the shares, noting that his analysis of housing data points to Q3 upside potential that suggests estimates already incorporate the impact of a recent moderation in transaction volume. While macro concerns could keep the stock rangebound in the near-term, Colantuoni believes Zillow's dominant share of real estate traffic provides various paths to above-market growth and sees an attractive setup into 2023 |
| Amylyx price target raised to $50 from $31 at SVB Securities |
| SVB Securities analyst Marc Goodman raised the firm's price target on Amylyx to $50 from $31 and keeps an Outperform rating on the shares as the 2nd AdCom for AMX0035 ended up being more positive than expected. The analyst notes that at the beginning of the AdCom, FDA Neuroscience division head Billy Dunn clearly set a positive tone by stressing the history and flexibility for regulatory approval for new drugs in areas of high unmet need such as ALS, as well as suggesting there are methods to remove the product from the market if the ongoing Phase 3 study were to fail, including the company voluntarily removing it, all of which Goodman believes were key factors contributing to the favorable voting results. The analyst had always thought that the FDA wanted to approve the product, and now he strongly believes that this is the case. He is increasing his Probability of Success for approval from 35% to 75% |
| Apple integrated approach to design has little competition, says Oppenheimer |
| Oppenheimer analyst Martin Yang notes that Apple has made history many times with its "innovative and delightful user interface designs," and that in the firm's initiation eight years ago, it argued how "the company set human interface as one of the highest priorities in its product development." However, the analyst hadn't seen "as many strokes of genius in UI in recent years" until Wednesday, when Dynamic Island was revealed. The feature turns an obvious eyesore into a unique, adaptable, and user-friendly UI feature. Dynamic Island, as a new feature, may be less effective than the upgraded camera at driving new iPhone sales, but it is arguably the loudest reminder of what makes Apple products unique, Yang contends. The hardware and software integrated approach to design has little competition, he adds. The analyst has an Outperform rating and a price target of $190 on the shares |
And here is what I am watching today: RH, EVH, ICPT, LULU, ULTA, PETQ, TZA, CMG, PANW, SAGE, TWLO, SPOT, ROKU, NFLX, and SPLK.
Let's have a great day!
-JB