The futures were mixed on Monday, after a Friday rally that saw some distinct divergence. While both the Dow Jones industrial average and the S&P 500 posted all-time highs again, the Nasdaq closed down. The market cheered the nonfarm payroll numbers that came in ahead of estimates, and Treasury securities were sold off across the yield curve, as many on Wall Street see a beginning to the tapering process of the quantitative easing program. It currently buys $120 billion of Treasury and mortgage debt each month.
Despite worries and the potential for a “taper tantrum” like we saw in 2013, 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 for equities.
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 9, 2021.
AAON Inc. (NASDAQ: AAON): D.A. Davison upgraded the stock to Neutral from Underperform and lifted its price target to $60 from $54. The consensus target is $59. The stock closed Friday at $67.25, which was up over 6% on the day, after posting very solid second-quarter results.
Activision Blizzard Inc. (NASDAQ: ATVI): Argus downgraded the video game giant to Hold from Buy. The shares have traded in a 52-week range of $71.19 to $104.53 and have a $166.66 consensus target. The final trade for Friday came in at $82.43.
ADC Therapeutics S.A. (NYSE: ADCT): RBC Capital Markets started coverage with an Outperform rating and a $33 price target. The consensus target is up at $47.75. The stock closed Friday’s session at $25.78, up almost 6% on the day.