The futures were higher Tuesday, after a follow-through rally attempt on Monday could not hold up to the afternoon selling pressure and all the major indexes closed lower. This week, investors will see an onslaught of second-quarter earnings from many leading S&P 500 companies, and we highlight some of the top companies daily during earnings season in our earnings previews. Solid earnings from financial giant Goldman Sachs helped to reinforce the early positive mood for investors, but that faded fast in the afternoon, and especially into the close.
The sellers returned to the Treasury market, as the two-year and 10-year note inversion widened on Monday as yields were up across the curve. The 10-year note closed at the 2.96% level, while the two-year note traded at a 3.17% yield. That was even higher than the benchmark 30-year bond, which closed at 3.13%. The ongoing inversion suggests recession may be imminent, as we here at 24/7 Wall St. have maintained for some time.
Brent and West Texas Intermediate crude closed solidly higher to start the week, up 4.4% and 5.1% respectively, as the president’s trip to Saudi Arabia provided no relief to the current supply issues. Natural gas also closed higher, up almost 7%. Gold closed higher, while Bitcoin jumped almost 4% to close at $21,593.40.
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, July 19, 2022.
Alphabet Inc. (NASDAQ: GOOGL): MKM Partners reiterated a Buy rating on the tech giant after its massive 20-for-1 stock split, but it lowered the $165 target price to $140. The consensus target is $157.60. The stock closed on Monday at $109.03.
Arista Networks Inc. (NYSE: ANET): Needham raised its Hold rating to Buy with a $128 target price. That compares to the higher $147.53 consensus target and Monday’s closing trade of $100.58.
BorgWarner Inc. (NYSE: BWA): Deutsche Bank upgraded the shares to Buy from Hold and lifted the $43 price target to $48. The consensus target for the auto parts supplier is $44.98. The shares closed on Monday at $34.16.
Brunswick Corp. (NYSE: BC): Stifel reiterated a Buy rating but cut the $115 price objective to $100. The consensus target is $104.50. The last trade on Monday was for $70.99 a share.
Chipotle Mexican Grill Inc. (NYSE: CMG) Goldman Sachs removed the popular restaurant chain from its Conviction List but kept a Buy rating and has a $1,720 target price. The consensus target is $1,822.17. The stock closed Monday at $1,319.16.
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