Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Feb 28, 2023 at 12:01 PM
Updated on Feb 28, 2023 at 12:04 PM
  • Midday Market Check
Published on Feb 28, 2023 at 11:40 AM
  • Analyst Update
  • Intraday Option Activity
So far, 2,255 calls have been exchanged -- four times the intraday average volume -- compared to 1,168 puts. The most active contract is the 3/10 130-strike call, with positions being opened there.
Published on Feb 28, 2023 at 10:29 AM
Updated on Feb 28, 2023 at 10:50 AM
  • Buzz Stocks

Target Corp (NYSE:TGT) reported fourth-quarter profits of $1.89 per share on revenue of $31.40 billion before the bell this morning, higher than the $1.40 per share and $30.72 billion anticipated by analysts, and marking the company's first earnings beat in a year. The retail giant also posted a weak 2023 forecast, however, as it joins its sector peers in caution due to the uncertain U.S. economy. 

At last glance, TGT was up 3% at $171.86. The shares recently bounced off their 200-day moving average after a short dip on the charts, and are now back to their mid-February levels. Year-to-date, the equity is up 14.7%. 

Analysts have yet to chime in after the earnings event. Of the 28 in coverage, 18 carry a "buy" or better rating, with the remaining 10 a tepid "hold." The 12-month consensus price target, meanwhile, sits at $177.10 -- a slim premium to current levels. 

Options traders, on the other hand, are chiming in at 10 times the intraday average, with 33,000 calls and 30,000 puts exchanged so far. The weekly 3/3 175-strike call is the most popular, with new positions being opened there. 



Published on Feb 28, 2023 at 10:36 AM
  • Analyst Update
  • Intraday Option Activity
Published on Feb 28, 2023 at 10:13 AM
  • Analyst Update

Amid a double-downgrade from Bank of America and a multi-day service outage, shares of DISH Network Corp (NASDAQ:DISH) are 6.6% lower this morning to trade at $11.40.

Bank of America adjusted its rating to "underperform" from "buy" and cut its target price to $10 from $30, predicting the shares could fall nearly 20% -- adding to already hefty year-to-date and year-over-year deficits -- with difficult months ahead. Goldman Sachs also weighed in, slashing its target price to $13 from $14.

In other news, Dish Network's websites and customer service phone lives have been down since Thursday, Feb. 23, just after the telecom firm reported fourth-quarter earnings that beat Wall Street's estimates. The company called the problems an "internal system issue," and it's continuing to investigate the cause of the outage.

There's plenty of room for covering brokerages to follow Bank of America's lead. Coming into today, eight still called DISH a "strong buy," compared to four "hold" and one "sell"  ratings. Plus, the 12-month consensus price target of $30.69 is a massive 151.6% premium to last night's close. Both of these leave the stock open to further downgrades and/or price-target cuts. 

Options traders are understandably excited. Within the first half hour of trading, 7,833 puts and 3,289 calls have already been traded, or six times the intraday average volume. Most popular is the September 10 puts, while new positions are being opened at the second most active contract, the June 12.50 call.

Regarding Dish Network stock's technical setup, its down 61.8% in the last 12 months, 13.1% lower in 2023, and on track for its worst monthly loss since September. DISH is trading at its lowest level since 2009. 

Published on Feb 28, 2023 at 9:10 AM
Updated on Feb 28, 2023 at 9:15 AM
  • Opening View

Stock futures are mostly higher this morning, but the major indexes are still looking to close out February with steep monthly losses. As investors weigh the latest batch of earnings reports, futures on the Dow Jones Industrial Average (DJIA) are pacing for a 42-point pop. Nasdaq-100 Index (NDX) futures are flat, and S&P 500 Index (SPX) futures are also above breakeven.

Continue reading for more on today's market, including:.

  • Schaeffer's Senior V.P. of Research has a new set of rules after last week's stock market reset.
  • Why options bulls love Cleveland-Cliffs stock.  
  • Plus, two earnings reports to unpack; and DISH double-downgraded.

OV 0228

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 706,556 put contracts traded on Monday. The single-session equity put/call ratio fell to 0.66 and the 21-day moving average stayed at 0.79.
  2. Target Corporation (NYSE:TGT) reported better-than-expected fourth-quarter earnings and revenue earlier, but also issued a careful 2023 outlook that missed the mark. TGT is down 0.6% ahead of the open, and carries a 16.3% year-over-year deficit.
  3. Zoom Video Communications Inc (NASDAQ:ZM) stock is up 5.6% before the open, after the company's fourth-quarter results beat estimates. While its 2023 revenue outlook disappointed, Zoom Video also shared an upbeat earnings forecast. Year-over-year, ZM is still down a 41.2%.
  4. Bank of America double-downgraded DISH Network Corp (NASDAQ:DISH) amid the company's service outage, and predicted downside of nearly 20% for the stock. DISH is down 5.2% in premarket trading, and down 62.8% in the last 12 months.
  5. Today brings the Case-Shiller U.S. home price index, the consumer confidence index, and the Chicago purchasing managers' index (PMI).

OV Buzz Chart Feb 28

European Markets Mixed on Inflation Data

Markets in Asia settled mostly higher on Tuesday, with the exception of Hong Kong’s Hang Seng, which fell 0.8%, despite the fact that the city lifted its mask mandate, starting Mar. 1, for the first time in three years. Japan’s Nikkei inched 0.08% higher, as investors unpacked a slew of economic data out of the region. Japan’s factory output fell 4.6% in January compared to December, seeing its worst decline in eight months, while the country’s retail sales surged a higher-than-expected 6.3% in January. Plus, the Bank of Japan’s (BoJ) Deputy Governor Masazumi Wakatabe reiterated his support for the central bank’s inflation target of 2%. Elsewhere, the South Korean Kospi and Shanghai Composite tacked on 0.4% and 0.7%, respectively.

European markets are mixed, with London’s FTSE 100 sporting a 0.4% deficit, after inflation on U.K. groceries rose above 17% in the first half of February, according to consultancy Kantar. Meanwhile, inflation data in France and Spain came in hotter than expected. The French CAC 40 is up 0.2% at last check, while the German DAX rises 0.3%.

Published on Feb 27, 2023 at 4:27 PM
  • Market Recap

Wall Street logged a modest win Monday, as investors looked to regain ground following last week's dip. Treasury yields are taking a step back as well, after the 2-year rate hit its highest level since July 2007 earlier in the session. Earnings from the retail sector will be in focus this week, with traders looking to get some additional insight into how inflation is impacting consumers' wallets.

Continue reading for more on today's market, including:

closing summary feb27

nyse nasdaq Feb27

5 Things to Know Today 

  1. The Supreme Court will hear arguments surrounding the funding of the Consumer Financial Protection Bureau(CNBC)
  2. The Federal Aviation Administration (FAA) is awarding nearly $1 billion to 99 U.S. airport projects. (Reuters
  3. Why this railroad stock surged today.
  4. Best Buy stock was hit with a downgrade.
  5. Several SPX trendlines to watch.

Earnings Feb27

UVOL Feb27

Gold Snaps Losing Streak

Oil prices fell today, pressured by ongoing uncertainty about the global economic outlook and a rising U.S. dollar. Specifically, April-dated crude futures shed 64 cents, or 0.8%, to close at $75.68 per barrel.

Gold prices snapped their losing streaking, posting a win for the first time in six sessions. April-dated gold futures added $7.80, or 0.4%, to settle at $1,824.90.

Published on Feb 27, 2023 at 2:25 PM
Updated on Feb 27, 2023 at 3:49 PM
  • Intraday Option Activity
  • Most Active Options Update
Published on Feb 27, 2023 at 3:16 PM
  • Quantitative Analysis

Peabody Energy Corp (NYSE:BTU) stock is up 1.4% at $26.67 at last glance, on track for its fourth-straight day of gains. The equity has found a floor just above the $25 level, too, which is home to its 200-day moving average -- a trendline with historically bullish implications. 

The stock has come within one standard of that trendline five times in the past three years, according to Schaeffer's Senior Quantitative Analyst Rocky White, after which BTU was positive one month later every time, averaging a 15.5% gain. A similar move would push BTU back above $30. 

BTU Feb27

A bout of short covering could provide tailwinds for Peabody Energy stock as well. Short interest accounts for 12.6% of the equity's available float, or 4.5 days' worth of pent-up buying power. 

Now could be a good time to weigh in on the security's next move with options. BTU is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 55%, which sits in the low 5th percentile of its annual range. 

Published on Feb 27, 2023 at 12:34 PM
  • Intraday Option Activity
  • Analyst Update
Published on Feb 27, 2023 at 11:54 AM
  • Midday Market Check
Published on Feb 27, 2023 at 11:03 AM
  • Buzz Stocks
So far today, 17,000 calls have been exchanged -- triple the intraday average -- in comparison to 9,990 puts. The weekly 3/5 25-strike call is the most popular, with new positions opening there. 

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