Earnings Season Highlights

Refresh your browser for the latest updates!
A collection of noteworthy post-earnings reactions
Published on Jan 30, 2023 at 11:46 AM
Updated on Jan 30, 2023 at 11:46 AM
  • Midday Market Check
 
Published on Jan 30, 2023 at 11:28 AM
  • Buzz Stocks
  • Intraday Option Activity

Overall options volume is today running at 14 times the average intraday amount, with 222,000 calls and 46,000 puts exchanged. Most popular is the weekly 2/3 7-strike call, followed by the 7.50-strike call in the same series, with positions being opened at both. 

 

Published on Jan 30, 2023 at 10:38 AM
  • Buzz Stocks

Lucid Group Inc (NASDAQ:LCID) stock is pulling back from its premarket gains, down 5.8% to trade at $12.12 at last glance. The electric vehicle (EV) name has been in the spotlight amid rumors that Saudi Arabia's public investment fund (PIF) wanted to buy out the company, and the shares jumped 43% on Friday.

Options traders are chiming in at four times the intraday average, with 93,000 calls and 37,000 puts exchanged so far. The weekly 2/3 13- and 12.50-strike calls are the most active by far, with new positions being sold to open at the latter. 

This is keeping with the bullish options sentiment of late, as LCID's 50-day call/put volume ratio of 1.97 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all but 1% of readings from the past year.

It's also worth noting that short interest represents 10.2% of the stock's available float. It would take six days to buy back these bearish bets, at LCID's average pace of trading. 

Published on Jan 30, 2023 at 9:11 AM
  • Monday Morning Outlook
 
Published on Jan 30, 2023 at 9:07 AM
  • Analyst Update
  • Buzz Stocks

Goldman Sachs weighed in on three retail giants today, issuing analyst notes to Macy's Inc (NYSE:M), Kohl's Corporation (NYSE:KSS), and Nordstrom Inc (NYSE:JWN)

The brokerage initiated coverage on Macy's stock with a "buy" rating, noting it's the "best-positioned" in the retail sector going into 2023. Last seen marginally higher ahead of the open, M is down roughly 10% in the last 12 months; however, the analyst said the shares could add more than 20% in the coming months due to its "position of strength." Year-to-date, the shares re up 11.7%. 

Kohl's stock is down 2.8% to trade at $30.60 premarket, after the brokerage rated the shares a "sell," with a price target of $27. KSS is down more than 47% year-over-year, and its 24.7% year-to-date rally has lost steam at its 200-day moving average.

Nordstrom stock is off by 0.9% before the opening bell, last seen trading at $18.25. This comes after Goldman Sachs downgraded the shares to "neutral." JWN is down 16% in the in the last 12 months, but has gained 14% already in 2023. 

Published on Jan 30, 2023 at 9:06 AM
  • Opening View

Stock futures are pointed lower this morning, unable to build off Friday's momentum. Investors are prepping for a busy week of earnings, while the Fed meeting Tuesday and Wednesday will be in focus as well. At last check, Dow Jones Industrial Average (DJIA) and Nasdaq-100 (NDX) futures are down by triple digits. 

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

  • This chip stock sat out Friday's gains.
  • What are your investing goals for 2023?
  • Plus, Ford downgraded; a biotech bull emerges; and Lucid rumors swirl.

OV Futures Jan 30

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.5 million call contracts and 1.3 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.51 and the 21-day moving average stayed at 0.81.
  2. Ford Motor Company (NYSE:F) is 2.3% lower premarket, after the automaker was downgraded to "hold" from "buy" at Berenberg. The company also announced it was cutting the price on its electric vehicle Mustang Mach-E. Year-to-date, Ford stock is up 14% already. 
  3. Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is in focus this morning, after Cowen upgraded the biotech to "market outperform" from "market perform." The analyst in coverage is bullish on the company's Eylea and Dupixent drugs, the latter of which just received European Commission approval. Year-over-year, REGN is up 22%. 
  4. The shares of Lucid Group Inc (NASDAQ:LCID) are 4.7% higher in electronic trading, as rumors swirl that Saudi Arabia's public investment fund was preparing to buy the remainder of the EV automaker. LCID has been halted multiple times this morning due to volatility. Year-to-date, the stock is already up 88% in 2023, thanks in large part to a 43% bull gap on Friday. 
  5. There are no notable economic indicators on tap today.

buzzjan30

Tech Stocks Feel BABA Blast

In a mixed session for Asian markets, the Hang Seng in Hong Kong led the laggards, shedding 2.7% after tech stocks in the area plunged following reports that e-commerce behemoth Alibaba (BABA) may shift its global headquarters to Singapore. Elsewhere, China’s Shanghai Composite added 0.1% after taking last week off for the Lunar New Year holiday. Rounding out the region, South Korea’s Kospi fell 1.4%, while Japan’s Nikkei tacked on 0.2%.

European stocks are also trading on both sides of the aisle. At last check, both the French CAC 40 and German DAX are 0.5% lower, while London’s FTSE 100 is 0.1% higher.

Published on Jan 27, 2023 at 4:26 PM
  • Market Recap

Stocks snagged daily and weekly wins, following a big week of earnings and economic data. Today's sixth-straight daily gain for the Dow came despite a lackluster quarterly report from blue-chip Intel (INTC), after economists grew hopeful that pricing has peaked following today's personal consumption expenditures (PCE) index reading. This is the index's longest such daily win streak since October.

Though January doesn't wrap up until early next week, the Nasdaq is on track to log its best monthly performance since July and today hit its highest close since September. The VIX, meanwhile, marked its lowest close in two weeks.

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

Closing Index Summary January 27+2023

 NYSE and Nasdaq Stats January 272023

5 Things to Know Today 

  1. Goldman Sachs CEO David Solomon is taking a 29% pay cut for 2022, compared to his 2021 take home of $35 million. This is due to a lagging yearly performance for the bank giant. (CNBC)
  2. A "Book of Names" has been unveiled at the United Nations (UN) to honor 4.8 million Holocaust Victims, on the eve of Holocaust Remembrance Day. To this day, more than 1 million Jews remain unidentified.(MarketWatch
  3. Blue-chip ripped to shreds after earnings.
  4. Red-hot energy stock eyeing more record highs.
  5. Bull note boost pet food name.

Earnings January 272023

Unusual Options Activity January 272023

Oil Posts Weekly Loss Ahead of Russian Ban

Oil prices settled lower on Friday, as investors look ahead to the upcoming Feb. 5 ban on Russian oil out of the European Union (EU). The Organization of the Petroleum Exporting Countries (OPEC+) is also slated to hold a meeting mid-next week. March-dated crude shed $1.33, or 1.6%, to settle at $79.68 per barrel for the day and down 2.4% for the week.

On the flip side, gold managed to log a sixth-straight weekly win, up nearly 0.1% -- its longest streak since August 2020. For the day, however, February-dated gold shed 60 cents, or 0.1%, to settle at $1,929.40 per ounce.

Published on Jan 27, 2023 at 2:55 PM
  • 5-Minute Market Rundown

Earnings season was in full swing this week, helping the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) both log triple-digit gains right out of the gate, while the S&P 500 Index (SPX) moved back above the psychologically significant 4,000 level. Momentum slowed quickly though, after disappointing guidance from 3M (MMM), followed by disappointing reports from heavy hitters Microsoft (MSFT) and Boeing (BA). By the end of the week, optimism returned following strong gross domestic product (GDP) data and upbeat earnings from Tesla (TSLA). As of this writing all three indexes are on pace for weekly wins, as the Cboe Volatility Index's (VIX) retreats.

Unpacking the Week's Biggest Quarterly Reports

Earnings are at the forefront of investors' minds, as these reports can be used as a gauge for the state of the economy. Microsoft (MSFT) was one of the most important reporters of the week, and the results were a lot gloomier than analysts had hoped. Tesla's (TSLA) fourth-quarter revenue set records, leading to a post-earnings bull barrage. Intel (INTC) was ripped apart by analysts after its earnings report. Defense contractor Lockheed Martin (LMT) continues to see tailwinds from Russia's invasion of Ukraine, while Macao's reopening helped bolster Las Vegas Sands' (LVS) results. I

Analyst Notes Your Might Have Missed

When the week started off strong, it looks like analyst optimism was lifted after these three stocks nabbed big upgrades. Meanwhile, headwinds rolled in for Sunrun (RUN) and SunPower (SPWR) on the withdrawal of solar incentives in California. Pfizer (PFE) was downgraded on the need for lower Covid estimates, aerospace concern Raytheon Technologies (RTX) nabbed post-earnings bull notes, and one brokerage said Lululemon Athletica (LULU) is facing a significant inflection point.

Significant Fed Update on Tap

To close out January, investors will turn their attention to earnings reports from several Big Tech firms, as well as the latest update from the Federal Reserve are slated to report earnings. In the meantime, check out this sounding S&P 500 market breadth signal.

Published on Jan 27, 2023 at 11:43 AM
  • Analyst Update

Ralph Lauren Corp (NYSE:RL) received a downgrade from BMO Capital to "underperform" from "market perform," though the firm also raised its price target by $4 to $100 -- still a hefty discount to current levels. The analyst in coverage cited worsening margins, noting that though foreign exchange improvements drove the stock to its recent positive price action, there's "worry the stock rally is overdone, particularly with growing North American profit pressures." 

At last glance, RL was down 1.3% at $122.59, and earlier traded as low as $118.32. The stock remains above all notable short- and long-term daily moving averages, however, including its 20-day trendline. Year-to-date, the equity is up 15.6%. 

It's also worth noting that though shorts have buying back their bearish bets over the past month, short interest still represents 9.9% of the stock's available float. It would take nearly one week to cover, at RL's average pace of trading. 

Those looking to bet on the equity's next moves could do so for a bargain right now. This is per RL's Schaeffer's Volatility Index (SVI) of 44% that sits in the relatively low 28th annual percentile. This implies options traders are pricing in low volatility expectations at the moment.

Published on Jan 27, 2023 at 11:41 AM
  • Midday Market Check
 
Published on Jan 27, 2023 at 11:13 AM
  • Analyst Update
  • Intraday Option Activity

Drilling down to today's options activity, 26,000 calls and 10,000 puts have crossed the tape, or three times the intraday average. Most popular is the weekly 2/3 40.50-strike call, followed by the 46-strike put in that series, with positions currently being opened at both.

 

 

Published on Jan 27, 2023 at 10:11 AM
  • Editor's Pick
  • Buzz Stocks
  • Analyst Update

Intel Corporation (NASDAQ:INTC) is the talk of Wall Street this morning, after an ugly quarterly report. INTC is down 7.3% to trade at $27.71 at last check, and seeing a flurry of options and analyst activity in response.

The chipmaker reported fourth-quarter earnings and revenue that were well wide of Wall Street's estimates. The company also forecasted a loss for the current quarter, following declines in sales, profit, and gross margin. The surprise forecast loss has sent the semiconductor sector spiraling today-- both Advanced Micro Devices (AMD) and Nvidia (NVDA) were lower premarket but have pared those losses at the open. 

Options traders are blasting Intel stock from both sides of the aisle. Within the first half hour of trading, 110,000 calls and 103,000 puts have been exchanged, volume that's 16 times the average intraday amount. The most activity is taking place at the weekly 1/27 28- and 27.50-strike puts.

No fewer than 10 brokerage firms have issued bear notes, including Bernstein's newly established price target of $20 adjusted down from $23. That's notable because coming into today, 23 of 26 firms already sported "hold" or worse recommendations, while the average 12-month price target stood roughly 4.3% above Thursday night's close of $28.37. That's how bad the report was-- already bearish analysts got even more bearish.

Today's drop is pacing to be the stock's worst single-session decline since July 29, and has put Intel stock back within a chip-shot of its Oct. 13 eight year lows. Intel stock --one of the worst Dow stocks in 2022 -- is now down 43.6% in the last 12 months and is currently on the short-sale restricted list. 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!

1640638248

 
Special Offers from Schaeffer's Trading Partners


MORE | MARKETstories


Prepare for the economy's 'inflection point'
Jack Harris's free e-book reveals a step-by-step method of how to use the 'dark pool tracker' to grow your trading account.
Plenty of Earnings on Deck Amid Slow Week
PepsiCo will report earnings next week
Tesla Stock Surges on Ramped Up China Production
The company is reportedly raising output to nearly 20,000 vehicles per week
Prepare for the economy's 'inflection point'
Jack Harris's free e-book reveals a step-by-step method of how to use the 'dark pool tracker' to grow your trading account.