The futures moved higher on Wednesday, after a back-and-forth trading day on Tuesday that saw a strong start turn around halfway through the day. The major indexes ended down, and with first-quarter earnings reporting all but over, Wall Street’s attention is focused on inflation and monetary policy. Interest rates fell again, as there was buying across the curve as some officials from the Federal Reserve have hinted recently that the May jobs report, which comes out the first Friday in June, could be softer than expected.
Despite those 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 one reason for the continued moves higher in the equity markets, even after sell-offs. Also note 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 Wednesday, May 26, 2021.
Advanced Micro Devices Inc. (NASDAQ: AMD): WestPark Capital started the semiconductor giant with a Buy rating. The shares have traded in a 52-week range of $48.42 to $99.23 and have a consensus price target of $105.76. The final trade for Tuesday was reported at $77.86.
ASML Holding N.V. (NASDAQ: ASML): Zacks named this as its Bull of the Day. The analyst said that, for chip makers, this provider of laser etching for microcircuitry is key to unlocking the nanoscale world. The stock most recently closed at $672.29 and has a consensus price target of $747.50.