The futures were trading mostly higher Wednesday after investors watched a solid start to the second-quarter earnings season on Tuesday. Both Goldman Sachs and Pepsi blew away expectations, reporting results that were way above analyst estimates. Tuesday’s reversal on all the major indexes, after the S&P 500 and the Nasdaq once again posted intraday all-time highs, shows the concerns for many investors over troubling inflation data that continues to come in.
Tuesday, the labor department reported that consumer prices increased 5.4% in June from a year earlier, the biggest monthly gain since August 2008. Excluding food and energy, inflation increased 4.5%, the largest move since September 1991. Interestingly, but not surprising if you are shopping for a vehicle, used car and truck prices comprised about one-third of the total CPI increase.
Despite the added concerns across Wall Street about tapering of the quantitative easing program and a clear building of inflationary pressures, the Federal Reserve is vowing to keep interest rates contained. That could be among the reasons 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 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, July 14, 2021.
Adapt Health Corp. (NASDAQ: AHCO): Baird upgraded the shares to Outperform from Neutral and also raised the price target to $36 from $30. The consensus target is higher at $42.22. The shares closed Tuesday at $26.27.
Array Technologies Inc. (NASDAQ: ARRY): Credit Suisse resumed coverage of the solar tracking company with an Outperform rating and a $31 price target. The consensus target is $27.70. The stock closed Tuesday at $15.56.