According to BMO, near-term hurdles such as competition for key drugs and patent expiries won't derail the long-term revenue and earnings growth of Eli Lilly And Co (NYSE:LLY). While the drugmaker forecasts annual profit and revenue below estimates in November, the brokerage noted the company's diabetes drug Mounjaro is tracking above expectations. Even better for Eli Lilly stock, it's shares just pulled back to a historically bullish trendline on the charts.

More specifically, Eli Lilly stock is trading near its 120-day moving average, which has acted as a springboard for the equity in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, eight similar signals have occurred during the past three years. One month later, LLY enjoyed a 5.1% gain, 75% of the time. Last seen up 0.8% at $355.61, a move of similar magnitude from its current perch would put the equity within a chip-shot of its Dec. 5 all-time high of $375.25.

On a year-over-year basis, Eli Lilly stock stands 35.5% higher. Meanwhile, on a closing basis, the $375 level acted as a ceiling during the security's trading at its aforementioned peak.

It doesn't look like the brokerage bunch needed much encouragement considering 14 or 16 in coverage rate LLY a "buy" or better; however, at least two recommend a tepid "hold," leaving a little room for an unwinding of pessimism. Further, the 12-month consensus target price of $389.52 is a 9.6% premium to the stock's current perch.

Options traders have been slightly more bearish than unusual, so a shift in sentiment in the options pits could put additional wind at the equity's back. Eli Lilly Stock's Schaeffer' put/call open interest ratio (SOIR) of 1.52 stands higher than 93% of annual readings, and indicates short-term traders have rarely been more put-biased. What's more, the stock's 50-day put/call volume ratio stands higher than 72% of annual readings at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Now looks like a great opportunity to take advantage of Eli Lilly stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 25% sits in the relatively low 14th percentile of its annual range. This means the stock is currently sporting attractively priced premiums.

Every day this week, we're going to highlight one of Schaeffer's top seven picks for 2023. Next up is retail stock Macy's Inc (NYSE:M). To access the entirety of the 2023 report, click here.

Macy’s (M) could be an attractive buy-and-hold for 2023, given its low price/earnings ratio of 4.9 and dividend yield of 2.79%. Even as recession fears have grown amid interest rate hikes and yield curve inversions, M has rallied 50% from a two-year low during this time frame. Back in October, the shares broke out of a trendline connecting lower highs since April, and thanks to a post-earnings bull gap in November, are now above their 200-day moving average.

However, expectations remain low among the brokerage bunch, with 13 of the 17 analysts covering the stock doling out “hold” or “sell” ratings. Short interest still accounts for a healthy 7% of the equity’s total available float too, even with short covering activity rampant since May. 

A computer outage led to all U.S. flights being grounded Wednesday morning. According to the Federal Aviation Administration (FAA), its "Notice to Air Missions" system was activated "to address the equipment outage issues for the U.S. NOTAM system," which is a notice for workers engaged in flight operations.

While flights get started back up in some major U.S. cities, Delta Air Lines, Inc. (NYSE:DAL), and American Airlines Group Inc (NASDAQ:AAL) are making fractional moves ahead of Wall Street's open. 

Delta Air Lines stock was last seen 0.1% higher to trade at $38.14. Flight cancellations over the holiday season pushed the shares lower on the charts, with DAL losing 7.1% in December. In the last 12 months, the equity is down 6.3%.

American Airlines stock, meanwhile, was last seen trading down 0.3% before the bell. Similar to Delta and other sector peers, AAL's experienced a hefty December dip, losing 11.9% to close out 2022. The security was able to hold above its early October, multi-year lows, but it still sports a nearly 20% year-over-year deficit. 

Stock futures are modestly higher, following yesterday's three-day win streak captured by the Nasdaq Composite Index (IXIC). Comments from U.S. Federal Reserve Chairman Jerome Powell had investors fatigued Tuesday, but tomorrow is looking to be a major day for inflation and big name bank earnings. At last check, futures on the Dow Jones Industrial Average (DJIA) are up 70 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 (NDX) eye a more neutral open.

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

• Schaeffer's Senior Quantitative Analyst Rocky White on why the third year of a Biden presidency could be a boon for stocks.
• A look at another Schaeffer's 2023 Top Stock Pick.
• Plus, two stocks suffering downgrades; and Tesla's latest production buzz.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.1 million call contracts and 720.896 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.64 and the 21-day moving average stayed at 0.80.
2. CarMax, Inc (NYSE:KMX) is down 1.3% before the bell, after a downgrade to "underweight" at J.P. Morgan Securities. The analyst in coverage said traders are not being cautious enough toward recovery risks for the auto retailer. CarMax stock has shed 43% over the past 12 months. 
3. Just one day off its latest layoff announcement, Coinbase Global Inc (NASDAQ:COIN) stock is down 2.7% in electronic trading following a bear note out of Bank of America. The brokerage downgraded COIN to "underperform" from "neutral," saying consensus estimates are "way too high." COIN has shed nearly 40% in the past three months.
4. The shares of Tesla Inc (NASDAQ:TSLA) are up 2.1% premarket, after the electric vehicle (EV) name registered to widen its factory production in Austin, Texas. Additionally, Tesla stock was named a "top pick" for 2023 at Goldman Sachs. TSLA has backpedaled more than 60% year-over-year. 
5. No notable updates are scheduled for today.

Unemployment Climbs to 11-Month High in South Korea

Stocks in Asia were mostly higher, as investors await the U.S. consumer price index (CPI) data tomorrow. Japan’s Nikkei led the region’s gainers, jumping 1%. South Korea’s Kospi added 0.4%, despite the unemployment rate in the country climbing 3.3% in December to an 11-month high. Rounding out the region, the Hong Kong Hang Seng added 0.5%, while China’s Shanghai Composite shed 0.2%.

European traders are also looking stateside, with the major bourses trading higher ahead of the release. The German DAX is leading the charge, last seen up 1.1%, while London’s FTSE 100 is 0.7% higher. In France, the CAC 40 is up 1%, after the Bank of France said the French economy is holding up better than expected and should be able to avoid a “hard landing.”

Stocks jumped back into positive territory this afternoon, with the Dow adding more than 186 points and the Nasdaq scoring a third-straight win, despite U.S. Federal Reserve Chairman Jerome Powell dodging the topic of economic policy in his latest remarks. Powell noted that restoring price stability may "require measures that are not popular," though. Investors are optimistic about what the rest of the year may bring, after the S&P 500 demonstrated some strength over those first five trading days -- usually a good omen for Wall Street. 

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

• Defense stock to buy on the dip.
• Five Below stock set to run higher.
• Plus, analyst upgrades BMBL; job cuts boost crypto stock; and which chip name is a 2023 stock pick.

5 Things to Know Today 

1. Former Trump Organization CFO Allen Weisselberg was sentenced to five months in jail after pleading guilty to tax fraud related to former President Donald Trump’s businesses. (CNBC)
2. The U.S. dollar could form its first "death cross" since 2020, as the rally that brought the currency to its highest level in over 20 years unwinds. (MarketWatch) 
3. Why this analyst is head over heels for Bumble stock.
4. Which crypto stock got a boost after announcing layoffs.
5. This semiconductor name is one of our top stock picks.

Oil Prices String 4th Consecutive Win

Oil prices scored their fourth consecutive gain on Tuesday, thanks in part to increasing economic optimism surrounding China and the euro zone. Plus, an Energy Information Administration (EIA) report showed record expectations for consumption of liquid fuels next year. February-dated crude rose 49 cents, or 0.7%, to settle at $75.12 per barrel.

Meanwhile, gold prices settled lower despite yesterday scoring their best settlement since May. Traders are currently looking to the consumer price index (CPI) reading for December. February-dated gold rose $1.30, or roughly 0.1%, to settle at $1,876.50 per ounce.

Every day this week, we're going to highlight one of Schaeffer's top seven picks for 2023. Next up, have semiconductor pick in ASML Holding N.V. (NASDAQ:ASML. To access the entirety of the 2023 report, click here.

Netherlands-based semiconductor giant ASML Holding (ASML) recently broke out of a monthly bull flag pattern. The equity has also found support at its 5-year moving average, which has been significant in past downturns. Additional support was found at the second half of 2020’s support/resistance level at the round $400 mark.

Looking further, for the first time, the stock’s year-to-date price moved back above its 2022 anchored volume weighted average price (AVWAP) level in November. Essentially, ASML has a monopoly on the EUV lithography machines that are used to fabricate semiconductor chips. Finally, the stock is sporting a Schaeffer's Volatility Scorecard (SVS) of 86, suggesting ASML’s performance over the past 12 months has exceeded options traders’ volatility expectations.