The futures were down across the board Wednesday, following a very positive day on Wall Street where all three major indexes and the transports ended higher. Much of the financial chatter was focused on the rising COVID-19 cases, with some areas, like Louisiana, that have seen a big spike in new cases reinstating mask mandates. The gaming industry was hit hard over worries that it may be the next target of the Chinese government. The key data point this week will be the July jobs report, which some think could be the blockbuster report Wall Street has been looking for with over 1 million new jobs being added.
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 Wednesday, August 4, 2021.
BJ’s Restaurants Inc. (NASDAQ: BJRI): Deutsche Bank raised the stock to Buy from Hold and has a $49 price target. The posted consensus target is much higher at $63.38. The stock closed Tuesday at $38.75, which was down almost 6% for the day despite beating earnings estimates. The shares rebounded almost 3% in the premarket.
Bright Health Group Inc. (NYSE: BHG): Though Citigroup upgraded it to Buy from Neutral, the firm also lowered the price target to $12. No consensus target was available as the stock had a recent initial public offering. The shares have traded between $7.98 and $17.93 so far. The final trade on Tuesday came in at $8.49, which was down a stunning 22% after the company posted earnings. Shares were fighting back in the premarket, up about 5%.