The futures were hammered on Tuesday as investors saw a familiar trading pattern return on Monday. While the Dow Jones industrials once again soared higher through the 35,000 level and posted yet another intraday all-time high, in a massive reversal after a 300-point gain, the venerable index ultimately closed down. The Nasdaq and the Russell 2000 were again pounded lower, with some pointing to the mega-tech downgrades at Citigroup. Another wrench for the markets was the news of the Columbia Pipeline cyberattack, allegedly by the Russians, that shut down one of the nation’s largest arteries for energy transportation to the east coast.
Despite concerns across Wall Street for tapering of the quantitative easing program and clear building inflationary pressures, the Federal Reserve is vowing to keep interest rates contained, which could be one reason for the continued moves higher in the equity markets, even after sell-offs. Note also that money markets continue to see massive inflows, which is another big plus.
With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, it makes sense for investors to continue building some cash reserves into the market strength while repositioning portfolios for the balance of the second quarter and the rest of 2021.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top analyst upgrades, downgrades and initiations seen on Tuesday, May 11, 2021.
Activision Blizzard Inc. (NASDAQ: ATVI): BMO Capital Market raised the video game leader to Outperform from Market Perform and has a $116 price target. The consensus target is in line at $116.03. The shares closed on Monday at $93.17.
AssetMark Financial Holdings Inc. (NYSE: AMK): Raymond James raised the shares to Strong Buy from Outperform and have a $34 price target. The consensus price objective is $29.67, and closed on Monday at $22.88.
Bilibili Inc. (NASDAQ: BILI): Zacks selected this as its Bear of the Day and warned that investors should take caution ahead of earnings. Shares last closed at $94.64, and the consensus price target is $158.86.