Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Feb 17, 2023 at 9:04 AM
  • Opening View

Stock futures are looking to extend yesterday's steep losses. Interest rate fears and Fed fatigue are still prevalent, especially after St. Louis Federal Reserve President James Bullard said he would not rule out a 50 basis point rate hike in March. Meanwhile, the 10-and 2-year Treasury yields hit their highest levels since November.

At last check, futures on the Dow Jones Industrial Average (DJIA) are eyeing a 128-point move lower, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also pointed lower. The tech-heavy benchmark is still looking to finish the week with solid gains, though.

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

  • Several reasons to avoid Walgreens stock
  • Call traders blasted this Roku rival yesterday.
  • Plus, DraftKing's quarterly win; ROKU double upgraded; and DoorDash to buy back shares.

OV Futures Feb 17

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 837,784 put contracts traded on Thursday. The single-session equity put/call ratio fell to 0.60 and the 21-day moving average stayed at 0.79.
  2. DraftKings Inc (NASDAQ: DKNG) yesterday reported better-than-anticipated results, while also raising its 2023 revenue outlook. The stock is up 7.2% ahead of the open, and earned a price-target hike from Benchmark to $23. So far this year, the sports betting stock has added 56.4%.
  3. Bank of America double upgraded Roku Inc (NASDAQ: ROKU) to "buy" from "underperform," while raising its price target to $85 from $45. The firm noted the company is set to improve margins and revenue, and that ad spending could improve this year. ROKU is up 2.1% in premarket trading, but carries a 56.3% year-over-year deficit.
  4. The shares of DoorDash Inc (NYSE:DASH) are brushing off the food delivery company's wider-than-expected fourth-quarter losses, thanks to a revenue beat, a share buyback program of up $750 million, and a strong annual forecast. The stock is up 3.8% before the bell and has already added 37% in 2023.
  5. Today brings the import price index and leading economic indicators. 

OV Buzz Feb 17

European Markets Dip on Global Inflation Data

Markets in Asia slipped today, led by the Hong Kong Hang Seng, which lost 1.3%. The South Korean Kospi dropped 1%, amid comments from the region’s finance ministry warning of a slowing economy, while China’s Shanghai Composite and Japan’s Nikkei shed 0.8% and 0.7%, respectively.

European markets are trading lower as well, as investors unpack global inflation data for the week. Germany’s producer price index (PPI) rose to a higher-than-expected 8.7% in January, though the rate has still steadily been decreasing over the past four months. The German DAX is down 0.7%, while London’s FTSE is 0.2% lower, and the French CAC 40 has shed 0.5%.

Published on Feb 17, 2023 at 9:04 AM
  • Analyst Update
Published on Feb 16, 2023 at 3:07 PM
  • Quantitative Analysis

Blue-chip pharma stock Walgreens Boots Alliance Inc (NASDAQ:WBA) has been consolidating above the $35 level for the past month or so, and was recently rejected by the $38 level. The stock could be due for a short-term dip, however, as WBA just came within one standard deviation of its 160-day moving average, which has had bearish implications in the past. 

Per data from Schaeffer's Senior Quantitative Analyst Rocky White, WBA has seen five similar signals over the past three years. The stock was lower one month later 60% of the time, averaging a 3.9% loss. From its current perch at $36.52, a move such as this would place Walgreens Boots Alliance stock just above the $35 level. 

WBA Feb16

Options look like a good way to go when weighing in on WBA. The stock is seeing attractively priced premiums, per its Schaeffer's Volatility Scorecard Index (SVI) of 25, which ranks in the low 6th percentile of its annual range. Plus, the equity's Schaeffer's Volatility Scorecard (SVS) sits at 71 out of 100, meaning the equity has exceeded option traders' volatility expectations during the past 12 months.

Published on Feb 16, 2023 at 1:48 PM
  • Buzz Stocks
  • Analyst Update

As inflation reports keep investors on their toes, Wall Street continues to get additional clues from the earnings confessional. Today, Twilio Inc (NYSE:TWLO), Tripadvisor Inc Common Stock (NASDAQ:TRIP), and Roku Inc (NASDAQ:ROKU) are all renewed interest from analysts following their respective results. 

Twilio's shares were last seen 19.1% higher to trade at $78.67, after the company reported fourth quarter profits and revenue that beat estimates. In response, no less than 10 analysts hiked their target prices. While the $80 level is keeping a lid on today's positive price action, TWLO is still trading at its highest level since November -- adding to a nearly 60% year-to-date lead.

Tripadvisor, meanwhile, reported earnings earlier this week, beating top- and bottom-line expectations in the process. Bernstein waited until today to downgrade Tripadvisor stock, however, cutting its rating to "market perform," after noting that the company's newly unveiled strategic plan was "more defensive than offensive." Last seen down 10.1% to trade at $22.66, TRIP sports a 23.1% year-over-year deficit.

Lastly, Roku today announced losses and revenue that were higher than Wall Street's expectations. At least 11 brokerages upped their price target, with JPMorgan Chase moving all the way up to $90 from $75. ROKU was last seen trading at $75.01 -- its highest level since August -- after adding 18.1%, and now stands nearly 85% higher in 2023. 

Published on Feb 16, 2023 at 12:26 PM
  • Quantitative Analysis

The shares of Hershey Co (NYSE:HSY) are down 1.5% at $233.93 at last check, but maintain a 15.4% year-over-year lead. The equity attempted to conquer its Dec. 9, all-time high of $242.56 twice before Valentine's Day, and is now pulling back. This drop may have been  what the chocolate stock needed to bounce higher, though, as it is currently flashing a historically bullish signal.

According to Schaeffer's Quantitative Analyst Rocky White, HSY's latest peak comes amid historically low implied volatility (IV), which has been a bullish combination for the shares in the past. White's data shows four other signals in the last five years when the security was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) stood in the 20th percentile of its annual range or lower. This is the case with Hershey stock's SVI of 18%, which sits in the 10th percentile of its annual range. 

One month after these signals, HSY was higher, averaging a 5.3% gain. From its current perch, a move of similar magnitude would place the security at a brand new record high of $246.32.

The brokerage bunch is bearish toward Hershey stock, with 10 calling it a tepid "hold' or worse, while five say "strong buy." This leaves ample room for upgrades going forward.

Published on Feb 16, 2023 at 12:02 PM
  • Midday Market Check
Published on Feb 16, 2023 at 10:33 AM
  • Buzz Stocks

Shopify Inc (NYSE:SHOP) is staging a post-earnings plummet, down 15.2% at $14.28 at last glance, and one of the worst stocks on the New York Stock Exchange (NYSE) so far today. The stock is brushing off better-than-expected fourth-quarter results, as well as no fewer than 10 price-target hikes, after the merchant platform's disappointing first-quarter revenue forecast. 

Today's drop has SHOP erasing its February gains, though the security is still up 28.9% since the start of 2023. The shares are also breaking below recent support at their 20-day moving average. 

In the options pits, calls were more popular than usual leading up to the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.39 calls have been bought for every put in the last 10 weeks. This ratio ranks higher than 89% of readings from the past year. 

Today, 120,000 calls and 96,000 puts have crossed the tape so far, which is five times the intraday average volume. The February 45 put is the most active contract, with new positions being opened there, followed by the February 50 call. 


Published on Feb 16, 2023 at 10:13 AM
  • Buzz Stocks
Published on Feb 16, 2023 at 10:11 AM
  • Intraday Option Activity
  • Buzz Stocks
Options bulls are chiming in, though, with 9,060 calls exchanged so far today, which is triple the intraday average volume, compared to 3,491 puts. The most popular contract is the February 25 call.
Published on Feb 16, 2023 at 9:05 AM
Updated on Feb 16, 2023 at 9:12 AM
  • Opening View

More red-hot inflation data rolled in this morning, to Wall Street's dismay. The producer price index (PPI) rose 0.7% in January, compared to expectations of a 0.4% pop, while jobless claims dipped last week. Both readings have left investors worried the Federal Reserve will continue to pursue aggressive interest rate hikes. At last check, Dow Jones Industrial Average (DJIA) and Nasdaq-100 Index (NDX) futures are both eyeing a triple-digit drop, while S&P 500 Index (SPX) futures are also pointed sharply lower.

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

  • A bullish case for UPS stock.
  • Crocs stock could bounce off technical support.
  • Plus, Cisco's upbeat quarter; Ford halts EV production; and Virgin Galactic makes space travel stride.

OV 0216

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 774,695 put contracts traded on Wednesday. The single-session equity put/call ratio rose to 0.63 and the 21-day moving average stayed at 0.79.
  2. Cisco Systems Inc (NASDAQ:CSCO) stock is up 3.6% in premarket trading, after the software giant reported a fiscal second-quarter earnings and revenue win. The company also hiked its 2023 forecast due to strong demand, and has drawn at least 10 price-target hikes. CSCO is still down 10.7% year-over-year.
  3. Ford Motor Co (NYSE:F) suspended production of its F-150 Lightning electric vehicle (EV) until the end of next week after a battery fire earlier this month. The stock is down 1% ahead of the open and shed 24.9% over the last 12 months.
  4. The shares of Virgin Galactic Holdings Inc (NYSE: SPCE) are up 3.8% before the bell and trending on Stocktwits.com, after the space travel name shared it has completed its test flight. So far in 2023, Virgin Galactic stock has added 72.7%.
  5. Housing starts and the Philadelphia Fed manufacturing index are also on tap. 

OV Buzz Feb 16

Asian Markets Mostly Higher After Economic Data

Markets in Asia were mostly higher today, as investors unpacked Japan’s worst trade deficit ever, coming in at 3.5 trillion yen ($26 billion), as well as retail sales data out of the U.S. China’s Shanghai Composite dropped 1%, while Japan’s Nikkei added 0.7%, Hong Kong’s Hang Seng tacked on 0.8%, and the South Korean Kospi rose 2%.

European bourses, meanwhile, are on the rise. The U.K. consumer price index (CPI) for January came in at a 10.1%, representing the third-straight monthly drop, though analysts anticipated the rate to drop to 10.3%. At last check, London’s FTSE 100 is up 0.1%, the German DAX has added 0.3%, and the French CAC 40 has gained 0.9%, earlier hitting a record high of €7,387.29.

Published on Feb 15, 2023 at 3:32 PM
Updated on Feb 15, 2023 at 4:38 PM
  • Earnings Preview
  • Quantitative Analysis

Options traders are already chiming in, with 8,138 and 9,693 puts across the tape so far today, or quadruple the intraday average volume. The most popular contracts are the February 130 and 145 calls, where positions are being opened. 

Published on Feb 15, 2023 at 4:32 PM
  • Market Recap

Wall Street's focus stayed on retail sales data today, which blew past estimates with a 3% rise in January. Despite this green flag for the country's economic outlook, stocks had to claw their way into positive territory, as investors weighed how the Federal Reserve may respond. The Dow added 39 points, while the S&P 500 and Nasdaq eked out wins as well.

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

  • Target this electricity stock for President's Day week.
  • How to thread the needle of fun and informative with Schaeffer's Market Mashup podcast ft. Senior Market Analyst Joe Hargett.
  • Plus, crypto stock surging; UPS boasting technical support; and unpacking Upstart's revenue win.

Closing Indexes Summary Feb 15

NYSE and Nasdaq Stats Feb 15

5 Things to Know Today 

  1. A new study suggested not all Americans are on board the artificial intelligence (AI) train. (CNBC)
  2. Tesla (TSLA) CEO Elon Musk said he plans to hire a replacement for his same position held at Twitter (TWTR) by the end of 2023. (MarketWatch
  3. Crypto name surges on fresh stake
  4. Support is piling up for this delivery stock. 
  5. Lending giant just saw post-earnings breakout.

Corporate Earnings Feb 15

Unusual Options Activity Feb 15

Oil, Gold See Steep Losses

After a weekly rise in U.S. crude inventories of 16.3 million barrels, per the Energy Information Administration (EIA), March-dated West Texas Intermediate crude settled lower. More specifically, oil futures shed 47 cents, or 0.6%, to finish at $78.59 a barrel.

April-dated gold closed at a fresh five-week low, as the greenback found strength. April-dated gold dropped $20.10, or 1.1%, to settle at $1,845.30 per ounce. 

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