The futures traded higher on Tuesday, after a follow-through Monday rally failed in the afternoon and saw all the major indexes close the day lower. Market pundits cited the early strength on the potential for China to loosen its draconian COVID-19 lockdowns, the fact that corporate buyback windows have reopened with third-quarter earnings coming to an end, and of course, the always bullish seasonality component. Despite the bullish backdrop, Federal Reserve officials continue to stress that rates are going higher, and the risk many see now is that the terminal rate is also going higher and for longer.
Treasury yields climbed across all maturities except the 30-year-long bond Monday, after the massive buying last week that dropped the 10-year note back to the lowest level in a month. The bond market was closed Friday for Veterans Day, so Monday’s reaction was of the delayed variety. The two-year and 10-year inversion remained in place, with the former closing at 4.40% and the longer debt closing at 3.87%. Bond traders see the continued inversion as a recession threat.
After posting solid gains late last week, both Brent and West Texas Intermediate crude closed well over 3% lower Monday after the Organization of the Petroleum Exporting Countries cut the demand growth estimates for the fifth time since April. OPEC revised down each of its 2022 and 2023 oil demand growth forecasts by 100,000 barrels per day. Natural gas finished the day higher as cold weather swept across much of the nation. Gold closed modestly lower, while Bitcoin ended the day higher after a rollercoaster Monday.
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, November 15, 2022.
Advanced Micro Devices Inc. (NASDAQ: AMD): UBS upgraded the chip giant to Buy from Hold and lifted its $75 target price to $95. The consensus target is $91.77, and Monday’s closing print was $73.53.
Altus Power Inc. (NYSE: AMPS): J.P. Morgan upgraded the stock to Overweight from Neutral and has a $10 target price. Shares have traded as high as $14.72 in the past year, but they closed at $7.11 on Monday, down almost 17% on the day after posting mixed results for the quarter.
Americold Realty Trust Inc. (NYSE: COLD): BofA Securities raised its Neutral rating to Buy and hiked its $27.70 price target to $ $33.50. The consensus target is $31.17. Monday’s close was at $28.66.
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Ares Management Corp. (NYSE: ARES): BMO Capital Markets downgraded the stock from Outperform to Market Perform with a $93 target. The consensus target is $87.91. The shares closed almost 6% lower on Monday at $79.53. The company posted disappointing results last week.
Arista Networks Inc. (NYSE: ANET): Earnings momentum and relative strength can take the Zacks Bull of the Day stock to all-time highs, suggests the analyst. Shares last closed at $131.20, and the $155.90 consensus price target represents almost a 19% gain.
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