The futures traded lower on Wednesday, after a furious rally Tuesday that faded fast but still saw all the major indexes close higher. The Nasdaq was the big winner, up 1.01% on the day. The lower than expected consumer price index reading was the catalyst for the rally, and all eyes on Wall Street are now focused on the Federal Reserve. As it meets for the last time this year, the Fed is expected to raise the federal funds rate once again, but this time only by 50 basis points.
Yields plunged across the Treasury curve, as buyers swooped in on the inflation numbers. The five-year and 10-year maturities closed at 3.65% and 3.50% respectively. The inversion between the 10-year note and the two-year remained at the widest level in 40 years, with the short paper closing at 4.21%. The bond market views the inversion as a signal for a recession.
Brent and West Texas Intermediate crude surged 3% or more on Tuesday. Brent was back over the $80 level, while WTI closed over $75. Hopes for a reopening in China are slowly growing brighter, and inventories have shrunk to the lowest levels in years. Natural gas had a big day, up over 5%, and closed near the $7 level. Gold and Bitcoin joined in on risk-off moves, both closing higher Tuesday, with the cryptocurrency up over 3%.
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 Wednesday, December 14, 2022.
Affirm Holdings Inc. (NASDAQ: AFRM): BofA Securities downgraded the stock to Neutral from Buy and slashed its $32 target price to $13. The consensus target is $22.56. The last trade on Tuesday was 4% lower at $11.78.
American Express Co. (NYSE: AXP): Piper Sandler resumed coverage with a Neutral rating and a $159 target price. The consensus target is up at $168.17. Tuesday’s close was at $157.52.
Block Inc. (NYSE: SQ): Piper Sandler resumed coverage with an Overweight rating and a $93 price target. The consensus target is $90.42, and Tuesday’s close at $71.03 was up over 7% for the day on the coverage resumption.
Centene Inc. (NYSE: CNC): BofA Securities downgraded the stock to Underweight from Neutral while dropping its $100 target price to $85. The consensus target is $101.32. The stock closed over 4% lower on Tuesday at $83.22 after the downgrade.
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