The futures traded higher on Tuesday, after starting the week with a big rally in which all the major indexes closed up on the day. All eyes remain focused on the Federal Reserve, which is expected to hike the federal funds rate by 50 basis points tomorrow. That will move the benchmark up to 4.25% to 4.50%. The November consumer price index numbers came in as expected, so all is aligned for tomorrow’s move.
While this is the last meeting of the year, the members of the committee will meet again at the end of January, when yet another hike is expected, but perhaps just by 25 basis points then. The terminal rate is expected to be over 5% when the Fed is done, and it could stay there until 2024.
Yields were up across the treasury curve on Monday as sellers finally returned after they had dropped back to their lowest levels since September. The yield on the two-year note closed back over 4.40%, keeping the inversion with the 10-year paper at the widest level in over four decades. Bond traders view the inversion between the two maturities as a recession signal.
Brent and West Texas Intermediate crude started the week with big moves higher, after uncertainty over supply helped to support prices after some steady selling last week pushed both benchmarks down to the lowest levels in a year. Natural gas also has a big day, closing up almost 8% as cold weather starts to settle in and exports are expected to rise. Gold and Bitcoin both finished 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, December 13, 2022.
Acadia Healthcare Inc. (NASDAQ: ACHC): Loop Capital upgraded the stock to Buy from Hold and bumped its $90 price target up to $95. The consensus target is $94. The stock closed on Monday at $82.95.
Accenture Inc. (NYSE: ACN): Piper Sandler downgraded the stock to Underweight from Neutral and has a $268 target price. The consensus target is higher at $314.72. The last trade on Monday was filled at $292.34.
Analog Devices Inc. (NYSE: ADI): Susquehanna started coverage with a Positive rating and a $205 target price. The consensus target is $191.80. The stock closed on Monday at $172.26.
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Apple Inc. (NASDAQ: AAPL): Oppenheimer reiterated an Outperform rating but lowered its $190 target price to $170. The consensus target is $178.15. The stock closed on Monday at $144.49.
Baxter International Inc. (NYSE: BAX): Citigroup’s downgrade to Neutral from Buy included a target price cut to $58 from $64. The consensus target is $63.70. The stock closed on Monday at $52.63.
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