The futures were all higher on the first trading day of June, after a wild May that saw some big back-and-forth swings across all the indexes. Stocks posted gains last week despite the 0.7% increase in the core personal consumption price gauge for April that came in as the biggest monthly gain for the inflation metric since October 2001. Investors will continue to keep a very close eye on additional inflation-related readings and other economic data. This week all eyes will be focused on Friday’s May jobs report.
Despite the concerns across Wall Street about tapering of the quantitative easing program and the 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 Tuesday, June 1, 2021.
Affirm Holdings Inc. (NASDAQ: AFRM): BofA Securities raised the stock to Buy from Neutral and has a $71 price target. The consensus target for the recently public company is higher at $76. The shares closed Friday at $60.81, which was up over 6%.
Allison Transmission Holdings Inc. (NYSE: ALSN): Goldman Sachs downgraded the shares to Sell from Buy and lowered the price target to $42. The posted consensus target is $44.50, and the shares closed most recently at $42.31.
Boeing Co. (NYSE: BA): Cowan upgraded the aerospace and defense giant to Outperform from Market Perform and raised the price target to $270. The consensus target is $260.65. Boeing’s last trade came in at $247.02 on Friday.