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PreMarket Prep Recap: Markets, Ulta Beauty Looking Pretty

Joel Elconin

Before the fireworks began when the November jobs data was released, there were a few market movers off earnings reports covered on today's PreMarket Prep Show.

Ulta Beauty Looking Much Better

After the close on Thursday, Ulta Beauty Inc. (NASDAQ: ULTA) announced a third-quarter EPS beat along with a slight miss for sales. Guidance came in above analyst estimates.

Since the issue was firmly in the green when it was being covered on the broadcast, it was difficult for the hosts to identify an entry level for an attempt at a long position. Instead, a few areas of potential resistance were pointed out.

The first level was its Oct. 3 high of $265.21. The second and more important level was its Oct. 1 high of $267.25. The reason being that level was its high after a massive rally in late September before it crashed and burned after its disappointing second-quarter report.

At this time, it has cleared both of those levels and is approaching $270.

Lowering The Boom On Zoom

Zoom (NASDAQ: ZM) did everything right with an EPS and sales beat, raised guidance, but is getting punished.

With the issue trading at an extremely high valuation, the Street was obviously looking for much more to justify its share price. With the issue already deep in the red, two areas of potential support were mentioned.

The first level being its low after its initial plunge following the report at $61.50. The second and more significant level for longer-term investors would be its all-time low made on the day following its IPO at $59.95.

After a much lower open, it had a brief rally to $65.08 and resumed its downward spiral. It has reached $62.11 and is attempting to rebound.

Who Has It Better Than Us?

Midway through the show, the government released November jobs data. The incredible report revealed that 266,000 jobs were added versus estimates of 188,000 and the unemployment level dipped to its lowest level in 50 years to 3.5%.

The report added fuel to the rally in the futures market that was already in the green ahead of the report. Since the index was in an area of very little resistance, investors were cautioned against trying to pick a top in today's session.

Fari Hamzei Joins the Show

Early into the broadcast, Fari Hamzei of Hamzei Analytics joined the broadcast. He shared his charts on S&P 500 index and outlook for the crude oil market.

At 8:35 a.m. EST on Monday, Nate Tobik of Completebankdata.com will be our guest to give his outlook for banking stocks in 2020.


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