The futures traded lower after a risk-off Valentine’s Day that saw two of the major indexes finish the day lower. Only the Nasdaq ended the day higher. The impetus behind the selling was the consumer price index data, which somewhat unexpectedly rose on a year-over-year basis and came in at 6.4% versus expectations of 6.2%. The core reading, which omits the volatile food and energy data, also was up year over year, at 5.6 versus 5.5%. This data almost guarantees another federal funds rate hike in late March.
Treasury yields were higher across the curve, as sellers came in as the inflation numbers were above estimates. The yield on the five-year note pushed back to the 4% level, while the 10-year note closed at 3.76%, up from 3.48% just one month ago. With the two-year paper closing at 4.62% (the highest since November), the two-year/10-year inversion remains in place. It is seen as a sign of impending recession.
Brent and West Texas Intermediate crude both finished the day down over 1%, despite OPEC output falling as Saudi production was down 156,000 barrels per day in January. Natural gas was a winner on Tuesday, closing almost 7% higher at $2.57. Gold finished the day lower, while Bitcoin rallied, closing up almost 2% to recapture the $22,000 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 Wednesday, February 15, 2023.
Alkermes PLC (NASDAQ: ALKS): Jefferies reiterated a Buy rating and has a $42 target price. The consensus target is lower at $32.30. The stock closed on Tuesday at $27.67.
Ally Financial Inc. (NYSE: ALLY): Jefferies reiterated a Hold rating with a $30 target. The consensus target is $35.24. The shares closed on Tuesday at $32.61.
Applied Materials Inc. (NASDAQ: AMAT): Stifel reiterated a Buy rating with a $132 target price. The consensus target is $121.04, and the stock closed at $118.44 on Tuesday.
Core & Main Inc. (NYSE: CNM): Loop Capital initiated coverage with a Buy rating and a $28 price target. The slightly higher $29.86 consensus target also compares with Tuesday’s closing print of $22.92, which was up 2% on the day.
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