The futures were all higher on Monday as investors start a new trading week and month with all-eyes focused on Friday’s July jobs report and the completion of the bipartisan infrastructure bill. All of the major indexes closed lower Friday, as Amazon joined Facebook in the big-tech penalty box for issuing some very disappointing guidance for the rest of the year, despite posting reasonably solid results. Wall Street pundits explaining Friday’s risk-off move also cited the renewed weakness in China, especially among the technology stocks, and concerns that the spread of the COVID-19 Delta variant could dampen the recovery momentum.
While the Federal Reserve did not raise rates last week, many across Wall Street remain leery of the beginning of the tapering of the quantitative easing program after the clear buildup 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 Monday. August 2, 2021.
AllianceBernstein Holdings L.P. (NYSE: AB): Citigroup upgraded the stock to Buy from Neutral and raised the target price to $54.50 from $44. That compares with a lower $46.14 consensus target and Friday’s closing price of $48.27.
Avantor Inc. (NASDAQ: AVTR): Piper Sandler raised the stock to Overweight from Neutral and boosted the price target to $45 from $40. The consensus target price is $37.15. The stock was last seen on Friday at $37.58.