The futures were higher Tuesday, after a risk-off Monday that likely was a continuation of Friday’s huge move lower after the very hawkish commentary from Federal Reserve Chair Powell. The bottom line for investors (after Powell’s inflation line in the sand) is that the federal funds rate is likely to go 3.75% to 4.00% by December and likely will be sustained for all of 2023. Should the S&P 500 close below the 50-day moving average at 4,005, it is quite possible we could be looking at a decline to the 3,900 level.
Yields were higher across the Treasury curve as the sellers held serve on Monday, and it is a good bet they will continue to be active with August soon ending. The two-year and 10-year note inversion widened some Monday, with the latter closing at a 3.10% yield and the former at 3.43%. Bond market pros view the inversion as a recession signal.
Both Brent and West Texas Intermediate crude closed higher Monday, up 3.83% and 4.13%, respectively. Analysts cited the supply issues in Iraq and Libya, as well as OPEC’s recent threat to cut production. Natural gas closed modestly higher as well. Gold closed flat, while Bitcoin reversed midday to close up 3%, after sinking below the $20,000 level.
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, August 30, 2022.
Acuity Brands Inc. (NYSE: AYI): Oppenheimer reiterated its Outperform rating and $210 target price. The consensus target is $194.50. The shares closed on Monday at $168.74.
Antero Resources Corp. (NYSE: AR): Goldman Sachs raised its $43 price target on the Buy-rated stock to $48. The consensus target is $50.46. The stock closed on Monday at $42.05.
Apple Hospitality REIT Inc. (NYSE: APLE): Wells Fargo upgraded the stock to Equal Weight from Underweight and bumped the target price to $17 from $16. The consensus target is $20.00. Monday’s final trade was reported at $16.14.
Applied Materials Inc. (NASDAQ: AMAT): Goldman Sachs boosted its $95 target price to $109 and reiterated a Buy rating on the semiconductor equipment giant. The consensus target is $136.07. The stock closed at $96.54 on Monday.
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Arcos Dorados Holdings Inc. (NYSE: ARCO): Goldman Sachs lifted its $9 target on the Buy-rated company to $10. The consensus target is $9.95. The shares closed on Monday at $7.72.
Bausch + Lomb Corp. (NYSE: BLCO): Goldman Sachs trimmed its $22 price target on the eyecare and products giant to $19. It also maintained a Neutral rating on the stock. The stock closed on Monday at $15.15.
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