The futures traded higher Wednesday after a furious snapback rally Tuesday that saw all the major indexes claw back most of the losses from Monday, when the S&P fell the most since May and the Dow Jones industrials were down the most since last October. While some across Wall Street attributed the bounce to short-term oversold conditions, the reality is that there is a host of very bearish technical divergences as we head toward the seasonally weak August to October period.
Despite the remerging COVID-19 concerns, many across Wall Street are also leery of the beginning of the tapering of the quantitative easing program after the clear building of inflationary pressures, despite the fact the Federal Reserve is vowing to keep interest rates contained. That could be 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 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 21, 2021.
Allegiant Travel Co. (NASDAQ: ALGT): MKM Partners raised its Neutral rating to Buy with a $230 price target. The consensus price target is much higher at $277.17. The final trade for Tuesday hit the tape at $188.45, which was up almost 8% for the day.
Archer Daniels Midland Co. (NYSE: ADM): Jefferies resumed coverage with a Hold rating and a $55 price target. The consensus target is up at $70.08. The shares closed on Tuesday at $58.03.
Autohome Inc. (NASDAQ: ATHM): Morgan Stanley downgraded the stock to Equal Weight from Overweight and has a $50 price target. The consensus target is much higher at $97.99. The shares closed Tuesday at $57.16, which was down almost 4% on the day.