The futures were higher as we start the new trading week, after a wild rollercoaster Friday that saw stocks race higher on the open despite the jobs number for October coming in much hotter than expected. By midday, the gains were gone and all the major indexes traded lower. Then the risk-off crowd returned with a vengeance in the afternoon, and by the close, all the stock market benchmarks ended higher. Wall Street now turns its attention to the midterm elections.
Wall Street estimates had called for 200,000 jobs for the October nonfarm payrolls, and the print came in Friday at 261,000, while the numbers for September were revised higher. This will give the Federal Reserve yet another data point for its interest rate quiver. While the 75-basis-point hikes may be over, and with the terminal rate estimates now as high as 5.25%, it could take three more increases to get to that level, starting with a likely 50-basis-point increase in December.
Treasury yields were up across the curve, with the 30-year benchmark bond yield up nine basis points to close at 4.25%. The two-year and 10-year inversion has widened to its deepest level in 40 years as, the latter closed at 4.16% and the former at 4.66%.
The big winner Friday was oil, as Brent and West Texas Intermediate crude both closed up well over 4% with Brent closing in fast on $100, as global concerns of tight supplies sparked the buying. Natural gas was also higher on the day at 6.46%, an 8% gain. Gold jumped over 3% to close at $1,682, while Bitcoin also climbed over 4% to $21,095.
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 Monday, November 7, 2022.
Advanced Energy Industries Inc. (NASDAQ: AEIS): Citigroup upgraded the stock to Buy from Neutral but clipped the $100 target price to $95. The consensus target is $90.78. The shares closed on Friday at $83.00, up over 3% for the day.
Align Technology Inc. (NASDAQ: ALGN): Citing slowing consumer spending and fading earnings estimates, Zacks selected this medical devices stock as its Bear of the Day. Shares have traded as high as $713.33 in the past year but closed most recently at $180.93. That is down more than 38% in the past 90 days.
Altice USA Inc. (NYSE: ATUS): HSBC Securities raised the shares to Buy from Hold and has a $6 target price. The consensus target is up at $10.09. The last trade Friday came in at $4.73, a 6.5% gain on the day.
Arista Networks Inc. (NYSE: ANET): Piper Sandler’s upgrade to Overweight from Neutral included a price target hike to $164 from $126. The consensus target is $146.69. The shares were last seen on Friday over 7% higher to $131.12. The company posted stellar earnings last week.
Atlassian Inc. (NASDAQ: TEAM): Macquarie’s downgrade was to Neutral from Outperform, and it slashed its $287 target price to $147. The consensus target is $308.65 for now. The stock was hammered Friday, closing down almost 29% at $123.73 after posting disappointing numbers and discouraging guidance.
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