The futures were trading lower after last week’s solid rally had a follow-through on Monday to get the ball rolling on what will be a massive week for earnings, especially from big tech. Alphabet, Amazon, Apple, Meta and Microsoft, which account for roughly one-quarter of the S&P 500’s market cap, are all scheduled to report. These are also major contributors to the Nasdaq index as well.
All the major indexes closed higher Monday, with the Dow Jones industrials leading the way. While we still have a long way to go with the third-quarter earnings, the early reports have been for the most part solid. One big concern among equity strategists is that lowered forward earnings estimates and guidance seem to be mounting, and a slew of numbers being chopped could pave the way for another big move lower.
Treasury yields were up across the curve, with the benchmark 30-year bond closing at 4.36%, after printing a 4.43% 52-week high earlier in the day. Following through on last week’s move higher in yields, if they end higher this week, it will be the 13th consecutive week that Treasury securities have traded lower and yields trended up. The two-year and 10-year inversion remained in place, after the final trade left the 10-year at 4.23%, and the two-year paper ended at a 4.51% handle.
Brent and West Texas Intermediate crude closed modestly lower, while natural gas stormed higher, closing up almost 5% at $5.18. Despite the solid equity rally to open up the week, both gold and Bitcoin ended Monday lower.
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, October 25, 2022.
Advanced Micro Devices Inc. (NASDAQ: AMD): HSBC Securities started coverage with a Hold rating but lowered its $170 price target to $165. The consensus target is $101.08. The shares closed on Monday at $58.70.
Analog Devices Inc. (NASDAQ: ADI): Barclays downgraded the stock to Equal Weight from Overweight and cut the $180 target price to $140. The $189.51 consensus target is higher, and Monday’s close was at $144.53.
ANSYS Inc. (NASDAQ: ANSS): Though Rosenblatt upgraded the shares to Buy from Neutral, it lowered its $290 price target to $270. The consensus target is $294.88. Monday’s close was at $216.07.
AT&T Inc. (NYSE: T): Raymond James upgraded the telecommunications giant from Outperform to Strong Buy with a $24 target price. The consensus target is lower at $20.20. Monday’s closing price was $17.51 a share.
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