The futures were higher across the board on Monday, as we start a new trading week in which investors are looking to recoup some of the losses sustained last week as the S&P 500 logged five straight losing days for the first time since February. The big market-moving data that hit on Friday was that the producer price index increased 0.7% in August from a month ago, above the 0.6% Dow Jones estimate. Final demand prices rose 8.3% from a year ago, the biggest increase on record going back to 2010. The data pretty much confirms what many on Wall Street already know, that the so-called transitory inflation may be here for longer than expected.
Despite worries and the potential for a “taper tantrum” like we saw in 2013, the Federal Reserve is vowing to keep interest rates contained. With that in mind, Fed officials have strongly hinted that the $120 billion per month quantitative easing purchases will start to be cut back as early as November, and all the massive bond-buying could be completed by the end of 2022.
With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board (which may have seen a beginning last week), it makes sense for investors to continue building some cash reserves into any 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, September 13, 2021.
Airbnb Inc. (NASDAQ: ABNB): Goldman Sachs started coverage with a Sell rating and a $132 price target. The consensus target price is much higher at $175.71. The last trade for Friday came in at $165.20 per share.
Amazon.com Inc. (NASDAQ: AMZN): Goldman Sachs started coverage of the tech behemoth’s stock with a Buy rating and a massive $4,250 price target. The consensus target is $4,142.65, and the stock was last seen at $3,469.15 on Friday.