The futures traded higher on Wednesday, after an up and down Tuesday when it seemed like many investors and traders were more than ready to take some of the 9% gains from July off the table. All the major indices closed lower. Some across Wall Street linked the weakness to House Speaker Nancy Pelosi’s trip to Taiwan and rising tensions with China. With next week’s consumer price index print for July due, and Friday’s nonfarm payrolls report also looming, investors are also trying to factor in a big drop in consensus earnings estimates for this year and 2023.
Yields exploded higher across the Treasury curve on Tuesday, as investors who piled into the safe-haven securities over the past two weeks brought out the sellers in a big way. The yield on the benchmark 10-year note (which had fallen almost 100 basis points since mid-June), rose 14 basis points, helping to keep the omnipresent two-year and 10-year inversion in place. Soon it may be the 90-day T-bill and the 10-year note, which will be even more worrisome for the bond market.
Brent and West Texas Intermediate crude both traded higher on Tuesday, after being gashed in a big way Monday. Natural gas was down a stunning 7%, falling back below $8. Gold closed higher, while Bitcoin closed down over 2% at 22,762.
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 Wednesday, August 3, 2022.
Bluebird Bio Inc. (NASDAQ: BLUE): Raymond James upgraded the shares from Market Perform to Outperform with an $8 target. The consensus target is $7.33. The stock closed up 8% on Tuesday at $4.05 on no news we could find.
Burlington Stores Inc. (NYSE: BURL): Goldman Sachs began coverage of the popular retailer with a Buy rating and a $183 target price. The consensus target is higher at $206.06. The stock was last seen on Tuesday trading at $148.05.
Caterpillar Inc. (NYSE: CAT): Bernstein downgraded the heavy equipment giant to Market Perform from Outperform and has a $195 target. The consensus target is $291.88. The shares closed Tuesday at $183.51, down almost 6% for the day after posting disappointing second-quarter results.
Chesapeake Energy Corp. (NASDAQ: CHK): Benchmark started coverage with a Buy rating and a $137 target price. The consensus target is $129.36. The shares closed on Tuesday at $90.25.
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