The futures were lower after a brutal risk-off day for investors that saw all the major indexes down big. The Nasdaq was torched the most, down a stunning 5.16%. This all came after the inflation numbers for August came out much higher than expected, despite falling gasoline prices. This huge and unexpected data dump assures that the Federal Reserve will raise the federal funds rate another 75 basis points next week at its September meeting. It also signals that any Fed pivot toward softening their war against inflation is way off in the 2023 distance.
Interest rates soared across the Treasury curve, with shorter maturities getting pounded the most on Tuesday. The yield on the five-year note spiked 13 basis points as the security hit a 52-week high. The two-year and 10-year inversion stayed in place, while widening, with the former up 17 basis points to close at 3.75% (the highest level in 15 years), while the last print for the latter was 3.42%. Bond mavens see the inversion as a recession warning sign.
Brent and West Texas Intermediate crude were both modestly lower on the day. Energy has sold off over the past 90 days on global recession worries. So much appears to have been discounted, as the benchmark pricings barely moved on the massive inflation blowout. Natural gas continued its move higher, closing near $8.30. Gold traded lower, while Bitcoin was down almost 10% on the extreme stock market weakness.
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, September 14, 2022.
Amgen Inc. (NASDAQ: AMGN): Oppenheimer reiterated an Outperform rating on the legacy biotech giant and has a $290 price target. The consensus target is $253.12. The stock closed almost 5% lower on Tuesday at $226.86.
AnaptysBio Inc. (NASDAQ: ANAB): Truist Financial downgraded the stock to Hold from Buy and chopped the $50 price target to $28. The consensus target is $32.43. The shares closed down over 8% on Tuesday at $23.64.
AppLovin Corp. (NYSE: APP): Oppenheimer maintained an Outperform rating with a $45 target. The consensus target is up at $56.93. The shares closed Tuesday at $26.68, down close to 7% for the day.
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Berkshire Hills Bancorp Inc. (NYSE: BHLB): Hovde initiated coverage with an Outperform rating and a $33 target price. The consensus target is $29.20. The stock closed on Tuesday at $28.22.
Blue Owl Capital Inc. (NYSE: OWL): Deutsche Bank started coverage with a Buy rating and a $19 target price. The consensus target is $15.13. The stock was last seen on Tuesday trading at $11.05.
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