The futures traded lower after a big risk-off Monday to start the trading week. All the major indexes closed higher, as the financial media cited a string of positives, including slowing inflation, a less aggressive Federal Reserve and an improving supply chain. Yet, fourth-quarter results are coming in much worse than expected, and so far only 67% of companies that have reported have topped estimates, versus the five-year average of 77%. So, selling the strength may make sense now.
Yields were higher across the Treasury curve as the sellers from Friday returned and yield curve steepening returned. The 10-year note closed at 3.53%, which keeps the inversions with the two-year paper in place, as it closed on Monday at 4.23%. Bond market mavens see the ongoing yield difference as a sign that a recession may be on the way, something many Wall Street strategists agree with.
Brent and West Texas Intermediate crude tried to keep their winning ways in place, as both closed flat or modestly higher on Monday. Monday’s final prints came on the heels of last week’s 2% gains for the oil benchmarks. Natural gas finished the day up almost 9% at $3.55, as investors grabbed the beaten-down shares in a big way. Gold closed up, while Bitcoin, which has been on a roll lately, closed up close to 1% and is approaching the $23,000 level.
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, January 24, 2023.
Advanced Micro Devices Inc. (NASDAQ: AMD): Barclays upgraded the stock to Overweight from Equal Weight and raised its $70 target price to $85. The consensus target is $91.01. The stock closed over 9% higher on Monday at $76.53 on the upgrade.
Altice USA Inc. (NYSE: ATUS): TD Securities downgraded the stock from Buy to Hold with a $6 target. The consensus target is higher at $8.94, but Monday’s close was at $4.77.
Apple Inc. (NASDAQ: AAPL): Though Deutsche Bank reiterated a Buy rating, the analyst trimmed its $170 target price to $160. The consensus target is up at $171.48. Monday’s close was at $141.11.
Bumble Inc. (NASDAQ: BMBL): Zacks selected this stock as its Bull of the Day, citing ongoing demand for dating apps. Shares last closed at $24.33, which is up more than 15% year to date.
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