The futures traded up Thursday after a massive risk-off rally on Wednesday in which all the major indexes closed higher. The Nasdaq led the way with a stunning 2.9% gain. The reason for the huge moves was the consumer price index reading for July that came in below expectations at 8.5% year-over-year. While this strengthens the “peak inflation” narrative, much of the drop was due to the decline in energy prices.
The gasoline index dropped 7.7% in July, which was the largest month-over-month decline in this component since April 2020. Note that energy prices overall fell 4.6% over the past month, but they can turn on a dime at any time. There will be another inflation report next month before the Federal Reserve governors meet in late September.
The hope of perhaps a lower 50-basis-point increase next month in lieu of the anticipated 75-basis-point or even a 1% increase, had buyers rushing back into the Treasury market, where yields were down across the curve, with the exception of the 30-year long bond, which closed at a 3.04% handle.
Brent and West Texas Intermediate crude both traded higher Wednesday, with WTI closing well over $91 a barrel. The Energy Information Administration reported a large build in crude stocks but also cited a very large draw in gasoline inventories. Natural gas was 5% higher, closing at $8.23, while gold closed down modestly and Bitcoin closed over 3% higher on the day, just shy of $24,000.
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 Thursday, August 11, 2022.
Akamai Technologies Inc. (NASDAQ: AKAM): Baird kept a Neutral rating and lowered its $102 price target to $95. The consensus target is higher at $117.86. The final trade on Wednesday was reported at $95.99.
Allbirds Inc. (NASDAQ: BIRD): Morgan Stanley downgraded the stock to Equal Weight from Overweight and cut the $12 price target to $5. The consensus target is $7.75. Wednesday’s close was at $4.68.
Altice USA Inc. (NYSE: ATUS): HSBC downgraded the shares from Buy to Hold with an $11 target price. The consensus target is $15.39. Wednesday’s close was at $10.95.
Array Technologies Inc. (NASDAQ: ARRY): Goldman Sachs raised its $18 price target on the Buy-rated stock to $25. The consensus target is $17.92. The stock closed almost 29% higher on Wednesday at $23.58 after topping second-quarter earnings and revenue estimates.
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