The futures were lower on Friday, after another risk-off day for the stock market in which all the major indexes ended in the red. One thing is for sure, and that is investors will be more than ready for the Federal Reserve to go ahead and raise interest rates next Wednesday. The futures market is pricing in a 100% chance of a 75-basis-point increase, and now a big 34% chance for a 100-basis-point increase. Another item that top strategists have on their screens is the massive expiration Friday of $3.2 trillion in index options, which could be just the fuel for a very volatile end to the week.
Interest rates were higher across the Treasury complex as sellers returned and the curve continued to flatten. The two-year note closed at a 3.87% yield, while the 10-year closed at 3.46%. The spread between the two securities of −41 basis points is the most inversion since September of 2000. As we have noted before, bond market pros see the inversions as a recession signal.
Both Brent and West Texas Intermediate crude gave consumers something to cheer about on Thursday, as both were hammered, with each down well over 3%. Analysts cited the ending of the potential for a railroad strike as a catalyst for the decline. After a big rally earlier in the week, natural gas closed down almost 8%, falling back below the $9 level. Both gold and Bitcoin closed down, with the crypto giant back under 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 Friday, September 16, 2022.
Activision Blizzard Inc. (NASDAQ: ATVI): Atlantic Equities upgraded the stock to Overweight from Neutral while lowering the $95 target price to $84. The consensus target is $93.96. The shares closed on Thursday at $76.83.
Albemarle Corp. (NYSE: ALB): Zacks selected this chemicals manufacturer as its Bull of the Day stock. The analyst makes the case that the great energy play of the next decade will not be oil. Shares last closed at $286.75, which is more than 57% higher than six months ago.
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Bumble Inc. (NASDAQ: BMBL): Stifel resumed coverage with a Buy rating and a $35 target price. The consensus target is $34.59. The stock closed on Thursday at $25.21.
Deckers Outdoor Corp. (NYSE: DECK): Wedbush’s upgrade to Outperform from Neutral included a price target price hike to $410 from $320. The consensus target is $382.46, and Thursday’s closing print was $339.40.
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