Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jun 15, 2022 at 10:53 AM
  • Buzz Stocks

Zendesk Inc (NYSE:ZEN) is up 2.6% to trade at $58.47 at last glance, after news that the equity is in settlement talks with activist investor Jana Partners. The agreement could bring several changes, including the removal of CEO Mikkel Svane and former Autodesk (ADSK) CEO Carl Bass. Jana also argued that the company needs rehabilitation after its attempt to buy Momentive Global. 

Bouncing off yesterday's two-year low of $57, ZEN is still down 27.1% in just the last week. Today's positive price action could have already been in the cards, however, as the stock's Relative Strength Index (RSI) of 23.3 sits firmly in "oversold" territory. 

The equity is surrounded by pessimism from analysts and options traders alike, meaning an optimistic shift could keep it moving off its lows. Of the nine analysts in coverage, five carry a tepid "hold" rating.

Meanwhile, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.47 puts have been bought for every call in the last two weeks. This ratio sits in the 98th percentile of ZEN's annual range, indicating puts have rarely been more popular in the past year.

It's also worth noting that short interest represents 6.4% of the stock's available float. In other words, it would take over three days to buy back these bearish bets, at ZEN's average pace of trading. 

Published on Jun 15, 2022 at 10:04 AM
  • Analyst Update
  • Intraday Option Activity
In just the first half hour of trading, 4,470 calls have crossed the tape, which is double the intraday average, as opposed to 1,103 puts. Most popular is the June 130 call, followed by the 120 call in that same monthly series. 
Published on Jun 15, 2022 at 9:19 AM
  • Buzz Stocks

The shares of Robinhood Markets Inc (NASDAQ:HOOD) are dropping even lower this morning last seen down 2.8% to trade at $7.03 before the opening bell. Today's dip comes after Atlantic Equities downgraded HOOD to "underweight" from "neutral," and cut its price target by $10 to $5. The brokerage said it's concerned about the online trading platform's "deteriorating revenue trends," especially as customers return to pre-pandemic trends and a potential recession looms.

Nearly a year into Robinhood stock's public trading record, it's been a brutal battle on the charts. Down more than 82% in the last nine months, the shares are facing pressure from every notable short- and long-term trendline. Year-to-date, HOOD is down roughly 60%, and is set to open at its lowest level on record today. 

Circling back to analyst sentiment, this marks the second-straight session Robinhood stock received a bear note, as J.P Morgan Securities yesterday cut its price target to $7 from $11. Covering brokerages, meanwhile, were split on the equity, coming into today, with five recommending a "strong buy," versus eight at a "hold" or worse. Meanwhile, the 12-month consensus target price of $12.89 is a staggering 83.4% premium to last night's close.

Short sellers are jumping ship, with short interest down 13.8% in the most recent reporting period. The shares sold short now make up 8.1% of the stock's available float, or nearly three days' worth of pent-up buying power. 

 

 

Published on Jun 15, 2022 at 9:16 AM
  • Buzz Stocks

The shares of Hertz Global Holdings Inc (NASDAQ:HTZ) are up 5% at $18.10 this morning, following news that the company's Board of Directors approved a $2 billion share repurchase program. This new buyback program is in addition to the preexisting $2 billion buyback program established in November 2021. 

The equity has been in selloff mode since failing at the 40-day moving average, though it looks to have found a floor at the $16.50 mark. In 2022, HTZ has lost 31%, though it's added nearly 10% in the past nine months. 

Analysts have been incredibly bullish over Hertz stock, with all four in coverage calling it a "strong buy." Plus the 12-month consensus price target of $28.71 is a 66.5% premium to last night's close. 

Short sellers, meanwhile, have been coming in in droves. Short interest rose 17.8% in the last reporting period, and now makes up 5.8% of the stock's available float, or a little under three days' worth of pent-up buying power. 

it's worth noting that HTZ options can be had at a relative bargain right now. This is per the stock's Schaeffer's Volatility Index (SVI) of 64%, which sits higher than just 14% of readings from the past year. In other words, options traders have been pricing in comparatively low volatility expectations at the moment. 

Published on Jun 15, 2022 at 9:09 AM
  • Opening View

Futures on the Dow Jones Industrial Average (DJIA) are up 189 points ahead of the open, following the blue-chip index's fifth-straight triple-digit loss, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures move higher as well. Wall Street is anxiously awaiting the conclusion of the Fed's two-day meeting and interest rate decision, where an aggressive rate hike is widely expected following last week's inflation data. In the meantime, retail sales fell 0.3% in May, missing expectations of a 0.1% increase, and dropping for the first time in five months as high prices deter shoppers. 

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

  • Marathon stock could move back toward recent highs. 
  • What to expect from the newest Fed update
  • Plus, 2 stocks moving on analyst notes; ZEN rises amid settlement talks. 

futures June15

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 941,139 call contracts traded on Tuesday, and 777,331 put contracts. The single-session equity put/call ratio fell to 0.83, and the 21-day moving average stayed at 0.63.
  2. Atlantic Equities downgraded Robinhood Markets Inc (NASDAQ:HOOD) to "underweight" from "neutral," citing the company's revenue trends. HOOD is down 2.4% premarket, and on track for a fresh record low.  
  3. Canaccord Genuity sees an attractive entry point for underperforming cloud stock Snowflake Inc (NYSE:SNOW), upgrading it to "buy" from "hold." However, J.P. Morgan Securities did slash its price target to $165 from $200 as well. SNOW is up 0.5% before the bell. 
  4. Zendesk Inc (NYSE:ZEN) is up 3.5% in electronic trading, after news that the equity is in settlement talks with activist investor Jana Partners. The paper proposed plenty of changes, including the removal of CEO Mikkel Svane. Looking to rebound from its recent slide, ZEN has shed 34.1% in just the last week. 
  5. The Federal Open Market Committee (FOMC) will release a statement alongside its projections today.

buzzjune15

Europe Eyes Monetary Policy Meeting

Asian markets were mixed on Wednesday, with the Hong Kong Hang Seng leading the gainers with a 1.1% pop, while the Shanghai Composite added 0.5%, as mainland Chinese stocks continue their rebound. Meanwhile, the Nikkei in Japan dropped 1.1% and the South Korean Kospi shed 1.8%, weighed down by a nearly 4% overnight drop by the S&P 500 in the U.S.

Over in Europe, stocks are attempting a bounce as investors monitor news that the European Central Bank (ECB) plans to hold an emergency monetary policy meeting today, amid a surge in bond yields for governments throughout the euro zone. At last check, the London FTSE and German DAX have added 1.3%, and the French CAC is 1.1% higher.

Published on Jun 15, 2022 at 7:13 AM
  • Buzz Stocks

Today's Stock Market News & Events: 6/15/2022

by Schaeffer's Digital Content Team

Today will contain the majority of the week's economic data. The Federal Open Market Committee (FOMC) will release a statement alongside its projections, while Fed Chair Jerome Powell will hold a news conference today.

In case you missed it, we collected insights from trading experts in all areas for an easy-read of predictions about Powell's conference today. You can find the roundtable of Fed commentary here.

The import price, empire state manufacturing, and National Association of Home Builders (NAHB) home builders indexes are all due out today as well. Rounding things out for the jam-packed session are data on retail sales and business inventories.

There are no public companies slated to release corporate earnings today, June 15.

Looking ahead to tomorrow, initial and continuing jobless claims are on deck once again. Additionally, building permits and housing starts data are on tap, as well as the Philadelphia Fed manufacturing index.

All economic dates listed here are tentative and subject to change.

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Published on Jun 14, 2022 at 4:30 PM
Updated on Jun 14, 2022 at 4:32 PM
  • Market Recap

What was briefly a promising session on Wall Street ultimately ended in the red again. The Dow shed roughly 151 points for its fifth-straight triple-digit loss, while the S&P 500 edged itself deeper into bear market territory for its worst close since January 2021. The only reprieve of the day was the Nasdaq, which settled slightly above breakeven after earlier logging a fresh 19-month low. Fears over a 75 basis-point interest rate hike tomorrow are crippling investor sentiment and driving the 10- and 2-year Treasury yields higher.

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

  • How FedEx stock won the day.
  • Oil stock could reclaim former highs.
  • Plus, petrol giant gets massive buyout offer; ORCL's post-earnings surge; and Best Buy stock's technical woes worsen.

The Dow Jones Average (DJI -  30,364.83) dropped 151.9 points, or 0.5%, for the day. Boeing (BA) led the gainers, adding 5.4%. Procter & Gamble (PG), meanwhile, paced the laggards with a 3.1% drop.

The S&P 500 Index (SPX - 3,735.48) shed 14.2 points, or 0.4% for the day. Meanwhile, the Nasdaq Composite (IXIC - 10,828.35) added 19.1 points, or 0.2% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 32.69) shed 1.3 points, or 3.9% for the day.

closing indexes june 14

nyse and nasdaq june 14

5 Things to Know Today

  1. Redfin (RDFN) and Compass (COMP) announced 8% and 10% workforce cuts, respectively, as home sales continue to fall in light of rising interest rates. (CNBC)
  2. Apple (AAPL) secured a deal to exclusively stream every live Major League Soccer (MLS) game over the next decade, beginning in 2023, on Apple TV. (MarketWatch)
  3. Continental Resources just received a $25.41 billion offer
  4. Strong cloud demand helped Oracle stock surge after earnings.
  5. Not much going right for Best Buy stock.

earnings june 14

uvol june 14

Gold Prices Lower as U.S. Dollar Strengthens

Oil prices were lower on on Tuesday, erasing earlier gains following a Bloomberg report that a U.S. Senator could be planning to propose a federal surtax on oil companies in an effort to contain inflation. July-dated crude fell $2, or 1.7%, to settle at $118.93 per barrel.

Gold prices took a hit as well, closing at their lowest level in over a month. Weighing on the precious metal was the U.S. dollar, which continued to gain strength amid rising bond yields and the potential for higher interest rates. As a result, August-dated gold shed $18.30, or 1%, to close at $1,813.50 an ounce.

Published on Jun 14, 2022 at 12:00 PM
Updated on Jun 14, 2022 at 3:05 PM
  • Midday Market Check

Stocks have given up their morning gains at midday, with the Dow Jones Industrial Average (DJI) last seen down 154 points, while the Nasdaq Composite (IXIC) is struggling for direction, and the S&P 500 Index (SPX) is deeper into bear market territory. A slightly lower-than-expected producer price index (PPI) for May initially created some tailwinds, but expectations of a 75-basis-point rate hike later this week have soured investor sentiment once again. 

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

  • Buyout offer pushes oil stock to multi-year highs.
  • What sent Oracle stock on a post-earnings surge. 
  • Plus, bears target EQT; REV volatile amid bankruptcy rumors; and OM gets analyst drubbing.

midday stats june 14

EQT Corporation (NYSE:EQT) is seeing an unusual amount of bearish trading in its typically quiet options pits. So far, 6,160 puts have crossed the tape, which is four times the intraday average. The June 41 put is the most popular, with positions being opened there. EQT was last seen down 7.3% at $41.77, and while there is no apparent reason for the negative price action, the natural gas concern is headed for its first close below the 40-day moving average since May 10. Year-to-date, EQT still boasts an over 93% lead.  

eqt june 14

Cosmetics name Revlon Inc (NYSE:REV) is far and away the best performing stock on the New York Stock Exchange (NYSE) today. Last seen up 108.6% at $2.44, the stock is staging a bounce off yesterday's 42.9% drop, after the Wall Street Journal reported the company could file for Chapter 11 bankruptcy as soon as this week. The news sent REV to a record low of $1.08 in the previous session, and even with today's doubling, the stock has lost over 84.3% in the past year. 

One of the worst stocks on the NASDAQ is Outset Medical Inc (NASDAQ:OM). The equity was last seen down 29.2% at $14.46, after Cowen lowered its price target to $33 from $60, while Stifel slashed its price objective to $30 from $55. This comes just one day after the company suspended its guidance and announced a shipment hold on the distribution of its Tablo Hemodialysis System, as approval by the U.S. Food and Drug Administration (FDA) is still pending. The stock earlier hit a record low of $13.67. 

Published on Jun 14, 2022 at 8:54 AM
Updated on Jun 14, 2022 at 2:55 PM
  • Buzz Stocks

Cosmetics concern Coty Inc (NYSE:COTY) is getting a lift today, last seen up 0.8% at $6.63, after the company reaffirmed both its current-quarter and full-year profit and sales guidance. The discussion was aired as a webcast presentation at Deutsche Bank's Global Consumer Conference today. 

Despite recent failure at its 40-day moving average, COTY has managed to keep some distance between its current levels and its May 25 annual low of $5.90. This is just a small silver lining though, as the security still suffers a 37.3% year-to-date deficit. 

Analysts are split on the stock. Of the nine in coverage, five say "buy" or better, while four say "hold." Meanwhile the 12-month consensus price target of $11.10 is a 68.7% premium to last night's close. 

Options traders, on the other hand, are incredibly bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 24.96, which stands higher than 89% of readings from the past 12 months. In other words, options traders are picking up calls at a much quicker-than-usual clip. 

Now could be a good time to weigh in on COTY's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 60% stands higher than just 28% of readings from the past year. This means options traders are pricing in relatively low volatility expectations at the moment. 

Published on Jun 14, 2022 at 2:22 PM
  • Intraday Option Activity
  • Buzz Stocks
FDX is seeing enhanced options activity today, with 38,000 calls and 40,000 puts traded so far, which is four times the volume that's typically seen at this point. Most popular is the June 230 call, followed by the 210 put in that same monthly series, with new positions being opened at both.
Published on Jun 14, 2022 at 1:09 PM
  • Quantitative Analysis

Oil and gas concern Chevron Corporation (NYSE:CVX) is seeing its shares pullback from a June 8, all-time high of $182.40, now having lost 5.5% in the last week. In addition, Chevron stock is slightly underperforming the Energy Select Sector SPDR Fund (XLE), a market-cap-weighted index of U.S. energy companies trading on the S&P 500 Index (SPX). Investors shouldn't fret, however, as the former equity has just dipped toward a trendline with historically bullish implications. 

Specifically, Chevron stock just landed on a study from Schaeffer's Senior Quantitative Analyst Rocky White after pulling back to its 80-day moving average. Per White's study, the equity has seen five similar pullbacks over the past three years, and finished higher in 60% of the circumstances, averaging a 5.6% gain. From its current perch of $169.53, a move of similar magnitude would put CVX just above $179 -- just off of its aforementioned highs.  

CVX Chart June 14

A round of upgrades could give Chevron stock a boost as well. Of the 16 analysts in coverage, seven say "hold" or worse.

A shift in the options pits could also put wind at the stock's back, as traders have moved in favor of bearish bets in recent weeks. CVX's Schaeffer's put/call open interest ratio (SOIR) of 1.0 stands higher than 80% of readings from the past year -- indicating short-term options traders have never been more put-biased in the past 12 months.

What's more, the stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 92% of readings from the past year.

Published on Jun 14, 2022 at 12:55 PM
  • Buzz Stocks

Call Traders Flock Toward Underperforming Tech Giant

by Schaeffer's Digital Content Team
 

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