The futures were mixed Wednesday, following a strong trading day Tuesday in which both the Dow Jones industrials and the S&P 500 posted fresh all-time highs. Again we saw some index divergence as the Nasdaq closed down. The transports, which are considered a strong economic indicator, had a big day, closing up almost 2%. Once again, interest rates crept higher as bond traders were selling government securities across the curve. The massive infrastructure bill passed the Senate, but it looks like the path to additional fiscal stimulus is complicated by a wide gap between progressives and the moderates in the Democrat party.
Despite worries and the potential for a “taper tantrum” like we saw in 2013, the Federal Reserve is vowing to keep interest rates contained. This comes as some of the Fed governors and media pundits are hinting that a tapering of the $120 billion per month purchase of government and mortgage debt known as quantitative easing could be in the works sooner rather than later.
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 11, 2021.
Albertsons Companies Inc. (NYSE: ACI): Barclays raised shares of the supermarket giant to Equal Weight from Underweight and has a $27 price target. The consensus target is lower at $21.88. The last trade Tuesday came in at $29.05, which was up over 17% on the day after the grocer announced a key hiring. Sharon McCollam will become new president and chief financial officer in September.
American Airlines Group Inc. (NYSE: AAL): Redburn initiated coverage with a Buy rating. Over the past 52 weeks, the stock has traded between $10.63 and $26.09, and it has an $18.85 consensus price target. The final trade for Tuesday hit the tape at $20.94 a share.
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