The futures were lower on Tuesday, as traders and investors returned from the holiday weekend. Friday finished off the best week in over two months, as all the major indexes, including the Russell 2000, closed up big. The Dow Jones industrials snapped an eight-week losing streak, the longest since 1932, while the S&P 500 and the Nasdaq ended skids that had lasted seven weeks.
The big question on many minds across Wall Street is where we go from here, after such a strong week. Last week’s rally was ignited in part when one of the Federal Reserve’s favorite inflation indicators, the core personal consumption expenditures price index, rose only 4.9%. That was in line with estimates and was a drop from the March print. The sense that inflation could be slowing could help keep the wind behind the market’s back, but the risk-off crowd looks to be back.
Surprisingly on such a risk-off day and week, yields across the Treasury curve were either flat or modestly lower on Friday. Unfortunately for consumers and motorists getting ready for summer vacation driving trips, both Brent and West Texas Intermediate crude closed higher Friday. Gold was slightly higher, while Bitcoin closed down almost 3%.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh 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 Tuesday, May 31, 2022.
Abercrombie & Fitch Co. (NYSE: ANF): Zacks selected this apparel retailer as its Bear of the Day, citing the price downtrend ever since the climax top in June of last year. The stock has traded as high as $48.97 a share in the past year but closed most recently at $22.55, which is down more than 35% year to date.
American Eagle Outfitters Inc. (NYSE: AEO): J.P. Morgan downgraded the shares to Neutral from Overweight and lowered the $20 price target to $15. The consensus target is $24.91 for now. The stock closed down over 6% on Friday at $13.10.
Autodesk Inc. (NASDAQ: ADSK): Goldman Sachs reiterated a Sell rating and lowered the $210 target price to $185 after earnings and better than expected guidance. The consensus target is up at $264.78. The stock closed over 10% higher on Friday at $210.38.
Bausch + Lomb Corp. (NYSE: BLCO): Wells Fargo started coverage with an Overweight rating and a $23 target price, while Guggenheim initiated coverage at Buy with a $24 price objective. The consensus target is $35.00. The stock had a recent initial public offering and closed Friday at $17.69 a share.
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