The futures sank after the consumer price index (CPI) numbers came in much hotter than anticipated, with year-over-year and core numbers above estimates. Most across Wall Street are now expecting another almost guaranteed 75-basis-point hike when the Federal Reserve governors meet next week.
All the major indexes closed higher on Monday, as the risk-on rally from last week (which ended a three-week losing streak) carried over to start the new trading week. Bullish analysts cited the oversold conditions and recent buying from short-sellers, hedge funds and quantitative accounts as reasons for the recent move higher.
Interest rates were surprisingly down across the Treasury curve Monday, as buyers emerged in front of the latest CPI data. Some across Wall Street are concerned that the Treasury market may become increasingly congested at the Federal Reserve after the quantitative tightening (QT) this month. In September, the pace of QT roughly doubled, with the caps doubling to $60 billion per month for Treasury securities and to $35 billion for mortgage-backed securities.
Brent and West Texas Intermediate crude both traded higher on Monday, following through on gains posted Friday. Despite recession concerns, the move higher comes after the analysts at J.P. Morgan noted that it is possible that OPEC could cut production by as much as a million barrels to help support prices. Natural gas closed back over the $8 mark on Monday, which was up almost 3%. Gold and Bitcoin both closed higher as well.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new 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, September 13, 2022.
Adobe Inc. (NASDAQ: ADBE): BMO Capital Markets downgraded the technology leader to Market Perform from Outperform while raising its $420 target price to $435. The consensus target is $458.93. The stock closed on Monday at $396.36.
Agnico Eagle Mines Ltd. (NYSE: AEM): Goldman Sachs initiated coverage on the gold mining heavyweight with a Buy rating and a $55 price target. The consensus is higher at $85.36. The last trade on Monday came in at $44.83.
Alphatec Holdings Inc. (NASDAQ: ATEC): Morgan Stanley started coverage with an Overweight rating and a $13 target. The consensus target is $16.33. The stock closed over 10% higher on Monday at $9.19, likely on the upgrade.
Amgen Inc. (NASDAQ: AMGN): Baird kept an Underperform rating on the biotech giant and has a $185 target. The consensus target is up at $253.12. The shares closed Monday at $237.62, down 4% for the day despite positive news for the company’s lung cancer pill.
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