Markets were absolutely crushed to start out the week. The tech sector was seeing some of the worst of the carnage, with the Nasdaq leading the charge lower, down over 3%. The S&P 500 and Dow Jones industrial average were each down 2.7% and 2.1%, respectively. Bitcoin was crushed as well.
This drop comes after Friday’s consumer price index (CPI) print, which demonstrated inflation growing at rates not seen since the early 1980s. The 8.6% reading beat out the consensus estimate of 8.3%. Many are looking to the gas pump for an inflationary reference, and it would suggest that this will be a very long summer.
In its fight against this inflation, the Federal Reserve is coming out with its most recent policy decision on Wednesday. Many are expecting an interest rate hike of at least 50 basis points. The bears are thinking this hike will be by 75 basis points, considering the most recent CPI print.
A couple of questions remain. How long it will take for the Fed to get inflation under control, and then how much pain will it take to get there?
24/7 Wall St. is reviewing additional analyst calls seen on Monday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Electronic Arts, GoodRx, Netflix, Spirit Airlines, Target, Tesla and more.
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN): Wedbush resumed coverage with a Neutral rating and slashed the $146 price target to $70. The 52-week trading range is $71.59 to $94.20, and shares traded above $73 apiece on Monday.
Micron Technology Inc. (NASDAQ: MU): Summit Insights downgraded the stock to Hold from Buy. The 52-week trading range is $59.88 to $98.45, and shares were trading near $60 on Monday.
Quanta Services Inc. (NYSE: PWR): UBS’s upgrade was to Buy from Neutral, and its $140 price target roe to $156. The stock traded near $125 on Monday, in a 52-week range of $84.40 to $140.04.
Royal Gold Inc. (NASDAQ: RGLD): Canaccord Genuity lifted its Hold rating to Buy. The stock traded near $112 on Monday. The 52-week trading range is $92.01 to $147.70.
Sangamo Therapeutics Inc. (NASDAQ: SGMO): Wedbush resumed coverage with a Neutral rating and a $5 price target. The 52-week range is $3.38 to $12.83, and shares traded near $3.60 apiece on Monday.
Silvergate Capital Corp. (NYSE: SI): Wells Fargo initiated coverage with an Overweight rating and a $120 price target. The shares traded near $63 on Monday. The 52-week trading range is $56.15 to $239.26.
T. Rowe Price Group Inc. (NASDAQ: TROW): BMO Capital Markets downgraded the shares to Market Perform from Outperform and cut the $160 price target to $135. The 52-week trading range is $108.46 to $224.56, and shares were changing hands at just under $108 on Monday.
Zendesk Inc. (NYSE: ZEN): Morgan Stanley’s downgrade to Equal Weight from Overweight included a price target cut to $80 from $145. Shares were trading near $62, in a 52-week range is $61.16 to $153.43.
Investors worried about rising rates and stock volatility may want to consider seven Dividend King stocks that should still do well even if the Federal Reserve accelerates its efforts to curb inflation.
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