Earnings seasons is starting to kick it up a notch with GS and JPM reporting this morning, and EBAY reporting after the bell. GS smashed estimates and is up nearly 4% PM. JPM beat as well but is down modestly as I write this. Tomorrrow we have C, BAC, BLK, and INTC so those could either provide a boost to the market, or give the market a reason to fade.
Only one I will be trying to play is BLK for tomorrow but then will look to play some of the high beta names next week, which we will cover in the week ahead on Sunday Jan 20th.
CMG came out with preliminary earnings for Q4 well below estimates on food cost issues. The stock fell 10% and is bouncing a little. Not sure I will be playin CMG on the long side for a bit as it looks like the growth story continues to be on hold.
AAPL broke solidly under $500 and it seems to have had a smaller impact on the market then i would have expected.
SODA and SHLD broke higher yesterday, only to fade EOD. I still like both here and added 52.50 SODA calls and some SHLD 49 and 50.42 calls.
Here are some of the analyst changes this morning:
Chipotle reports Q4 preliminary EPS $1.92-$1.97, consensus $2.09
Reports Q4 preliminary revenue $699.2M, consensus $690.86M.
Chipotle shares likely to be down meaningfully, says Jefferies
Jefferies expects shares of Chipotle to be down meaningfully after the company preannounced weaker than expected Q4 earnings. The firm says it's becoming increasingly clear that Chipotle's same-store-sales and modest pricing will not maintain margins and could yield 2013 earnings significantly below consensus. Jefferies keeps an Underperform rating on the stock with a $215 price target.
Dunkin' Brands announces plans to enter Southern California
Dunkin' Donuts announced that it is expanding to Southern California. Specifically, the company is recruiting multi-unit franchisees for Los Angeles, Riverside, San Diego, San Bernardino, Ventura and Orange counties and expects restaurants in these markets will begin to open in 2015. The company is also interested in identifying qualified food service operators for a wide range of non-traditional venues including colleges and universities, casinos, military bases, supermarkets, airports and travel centers. In 2013, the company plans to open 330-360 net new restaurants in the United States with grow
Chipotle comps likely to bottom at 1% in Q1, says William Blair
William Blair says food inflation pressured Chipotle's Q4 after the company preannounced weaker than expected earnings for the quarter. The firm expects Chipotle's comps to bottom at roughly 1% in Q1 before moving higher on a likely price increase. William Blair views Chipotle's business as very healthy and said it would be opportunistic buyers on share weakness. The firm keeps an Outperform rating on the stock.
Wynn Resorts downgraded to Neutral from Buy at ISI Group
ISI Group downgraded Wynn Resorts due to valuation.
Here are some of the strikes i am looking at today:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price||Entry Price|
I like BLK to continue the uptrend and break above $230 for earnings tomorrow. Heck, stock is correcting itself from a YEAR of underperforming the market for the wrong reasons. I think NFLX will get legs today or tomorrow after yesterdays fade and will play $110 calls for a flip. Also think LNKD will get some footing if FB stays green today.
That is all for now.. Lets have a great trading day!