Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jan 19, 2023 at 2:55 PM
  • Intraday Option Activity
  • Earnings Preview
 
Published on Jan 19, 2023 at 10:16 AM
Updated on Jan 19, 2023 at 1:46 PM
  • Intraday Option Activity
  • Analyst Update
 
Published on Jan 19, 2023 at 1:28 PM
  • Most Active Options Update
 
Published on Jan 19, 2023 at 1:00 PM
  • The Week Ahead
          
Published on Jan 19, 2023 at 12:03 PM
  • Quantitative Analysis

The shares of Nordstrom Inc (NYSE:JWN) recently rallied off their Dec. 28, two-year low of $15.52, though the equity was last seen down 2.6% at $17.12 at last check. This pullback looks like it may get extended, as JWN just ran into a trendline with historically bearish implications.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, Nordstrom stock is within one standard deviation of its 100-day moving average. The retail name has seen seven similar signals over the past three years, after which the stock was lower one month later 43% of the time, averaging a 10.4% loss. 

JWN Jan19

Now looks like the perfect time to weigh in on the security's next move with options, too. The stock is seeing attractively priced premiums at the moment, per JWN's Schaeffer's Volatility Index (SVI) of 48%, which ranks in just the 1st percentile of its annual range.

Published on Jan 19, 2023 at 11:53 AM
Updated on Jan 19, 2023 at 11:56 AM
  • Midday Market Check
 
Published on Jan 19, 2023 at 11:51 AM
  • Analyst Update

As the market looks to extend its slump, two stocks are having a particularly tough time today after a pair of bear notes. 

Roblox Corp (NYSE:RBLX) is down 8.2% to trade at $32.81 at last glance, after Morgan Stanley downgraded the stock to "underweight" from "equal weight," with a price-target cut to $24 from $27.50. The firm limited upside for the stock after its recent outperformance. Year-to-date, RBLX is up 16.4%.  

Of the 30 analysts in coverage, 12 carry a "buy" or better rating, 10 a "hold," and eight a "sell" or worse, while the 12-month consensus price target of $36.22 sits at a 9.2% premium to current levels. It's also worth noting that short interest represents 5.5% of Roblox stock's available float. 

The shares of Charles Schwab Corp (NYSE:SCHW) are off 5% at $77.31 at last check, after a double-downgrade from BofA Global Research to "underperform" from "buy," with a price-target cut to $75 from $92. The firm believes customers will adjust their portfolios to account for higher interest rates this year. 

After the close yesterday, Charles Schwab reported fourth-quarter earnings of $1.09 per share -- in line with analyst estimates -- alongside lower-than-expected revenue of $5.50 billion. No fewer than three other analysts lowered their price targets after the event as well, including Barclays to $87 from $92. 

Support at the $76 level looks like it could keep today's losses in check, as the stock also grapples with its 320-day trendline, which has provided support since late October. Year-over-year, SCHW is down 16.3%. 

 

Published on Jan 19, 2023 at 10:39 AM
  • Buzz Stocks
  • Intraday Option Activity
 
Published on Jan 19, 2023 at 9:15 AM
Updated on Jan 19, 2023 at 9:15 AM
  • Opening View

Dow Jones Industrial Average (DJIA) futures are down 264 points ahead of the open this morning, as the blue-chip index looks to extend yesterday's plummet. Nasdaq-100 Index (NDX) futures are down triple digits as well, while the S&P 500 Index (SPX) sit more modestly in the red. Many are pointing to the Fed in regard to the market's negative sentiment today, as investors grow increasingly concerned about ongoing rate hikes. Meanwhile, initial jobless claims came in at 190,000 for last week, which is below the anticipated 215,000. 

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

  • S&P 500 could see bullish implications from ratio rollover. 
  • How Fifth Third stock was faring before this morning's earnings report.
  • Plus, UAL jumps after earnings; and 2 analyst calls today. 

Futures Jan19

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and over 1.7 million put contracts traded on Wednesday. The single-session equity put/call ratio rose to 1.31 and the 21-day moving average stayed at 0.81.
  2. Morgan Stanley downgraded Roblox Corp (NYSE:RBLX) to "underweight" from "equal weight," with a price-target cut to $24 from $27.50, seeing limited upside for the stock after its recent outperformance. On the charts, RBLX is still on track for its fourth-straight weekly gain, down 6.6% premarket.
  3. Discover Financial Services (NYSE:DFS) is down 8% before the bell, despite its fourth-quarter beat, after the company's forecast net charge-offs (NCO) on credit card transactions came in worse than analyst expectations. Year-over-year, DFS is down 17.3%. 
  4. Philip Morris International Inc (NYSE:PM) is up 0.6% in electronic trading, after an upgrade from Jefferies to "buy" from "hold," with a price-target hike to $118 from $86. The firm cited smokeless alternatives, saying the shares could jump 20%. On the charts, PM is just a chip shot away from its year-over-year breakeven level. 
  5. Today will bring building permits and housing starts. Investors will also be eyeing the Philadelphia Fed manufacturing index.

buzzjan19

European Markets Fall as Sentiment Sours

Asian markets were all over the place today. Japan’s Nikkei shed 1.4% after the country recorded a 17th-straight monthly trade deficit in December. Elsewhere, Hong Kong’s Hang Seng fell 0.1%, while China’s Shanghai Composite and South Korea’s Kospi both added 0.5%.

Investor sentiment in Europe is souring, as delegates at the World Economic Forum in Davos try to gauge the global economic outlook. At last check, London’s FTSE 100, France’s CAC 40, and Germany’s DAX are down 1.3%, 1.7%, and 1.6%, respectively.

Published on Jan 18, 2023 at 4:28 PM
Updated on Jan 18, 2023 at 4:37 PM
  • Market Recap

 

The Dow shed 614 points on Wednesday, marking its worst single-day percentage drop in over a month. The S&P 500 and Nasdaq also settled lower, with the latter snapping a seven-day win streak as traders brushed off a producer price index (PPI) for December that hinted at easing inflation. A holiday sales miss, profit taking, and tech layoffs also contributed to today's pessimism. As a result, the Cboe Volatility Index (VIX) edged higher to settle back above 20.

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

  • Airline stock hit a fresh high on upbeat forecast.
  • 2 tech giants became the latest to announce layoffs.
  • Plus, what boosted MRNA; Party City goes bankrupt; and keep tabs on this software name.

Closing Index Summary January 182023

NYSE and Nasdaq Stats January 182023

5 Things to Know Today 

  1. Executives at the World Economic Forum expressed optimism about the economy, but warned the U.S could default on its debt for the first time in modern history. (CNBC)
  2. Spotify Technology (SPOT) is urging the European Commission to take “swift and decisive action” against Apple (AAPL) due to the latter's anticompetitive practices. (MarketWatch
  3. Upbeat vaccine trial data boosted Moderna stock.
  4. Shorts piled on Party City stock after bankruptcy filing.
  5. How Okta stock could soon run down overhead levels

Earnings January 182023

Unusual Options Activity January 182023

Fed Comments Weigh on Oil, Gold Prices

Oil prices pivoted lower on Wednesday, settling back below the $80 region after earlier surging to their highest level since December. Comments from St. Louis Fed President James Bullard, who indicated the Federal Reserve needs to quickly hike interest rates above 5%, weighed. February-dated crude dropped 70 cents, or 0.9%, to settle at $79.48 per barrel.

Gold prices had a volatile session as well, marking another eight-month high before finishing in the red. Bullard's remarked weighed on the yellow metal as well, as investors worried about how higher interest rates might impact the economy. February-dated gold shed $2.90 or 0.2%, to settle at $1,907 per ounce.

Published on Jan 18, 2023 at 3:38 PM
  • Buzz Stocks

Fifth Third Bancorp (NASDAQ:FITB) is one of the many bank giants reporting earnings this week. The Cincinnati-based firm's fourth-quarter earnings report is due out before the open tomorrow, Jan. 19, in which analysts expect profits of $1.00 per share. FITB is slipping ahead of the results, down 3.4% at $32.95 at last check today. 

A look at its post-earnings history shows Fifth Third stock finishing only one of the last eight next-day sessions higher. Over these past two years, FITB has averaged a 2.9% swing the following day, regardless of direction. This time around, the options pits are pricing in a 5.3% move. 

On the charts, the security's descending 180-day moving average has pressured the stock lower over the past couple months. Year-over-year, the stock is down 33.5%. 

FITB Jan18

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per FITB's Schaeffer's Volatility Index (SVI) of 31%, which sits in the 14th percentile of its annual range. It's also worth pointing out that the equity ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just nine out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.

Published on Jan 18, 2023 at 1:22 PM
  • Buzz Stocks

Telehealth concern Teladoc Health Inc (NYSE:TDOC) and blue-chip component Microsoft Corp (NASDAQ:MSFT) are making moves today, after both companies joined the tech masses in announcing sizable layoffs.

Microsoft Plans to Cut 10,000 Jobs

After earlier rising as high as $242.38, Microsoft stock was last seen down 1.2% to trade at $237.48. The Big Tech behemoth plans to cut 10,000 jobs -- nearly 5% of its workforce -- by the end of the third quarter in an effort to bring down costs. MSFT is down more than 21.5% in the last 12 months, and has carved out a channel of lower lows since an all-time beak just below $350 in November of 2021.

Options traders have been slightly more bullish than unusual, and an unwinding of this optimism could add more headwinds. Microsoft stock's Schaeffer's put/call open interest ratio (SOIR) of 0.75 stands higher than just 3% of annual readings, and indicates short-term traders have rarely been more call-biased. What's more, MSFT's 50-day put/call volume ratio of 1.25 stands higher than 90% of annual readings at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Teladoc Removes "Redundant Roles"

Teladoc stock is 5.1% lower at $26.98 at last glance. The telehealth company said it removed "redundant roles" by cutting 300 jobs, or roughly 6% of its workforce in an effort to cut costs.

Beginning in mid-November, the $30 area moved in as resistance on the charts. A late-April bear gap sent the shares below the $50 level for the first time since April 2019, and in the last three months, TDOC has consolidated between $28-$30. Year-over-year, the stock is down 64.5%.

TDOC calls are also unusually popular at the moment. At the ISE, CBOE, and PHLX, the equity sports a 10-day call/put volume ratio of 3.67 that ranks higher than 98% of readings from the past 12 months.

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