The futures traded flat on Tuesday, after a big opening rally on Monday faded and the major indexes closed mixed: the Dow Jones industrials up almost 0.6% while the Nasdaq closed lower. The early strength was a result of the deposits and loan book for Silicon Valley Bank being sold to First Citizens Bank. The deal covers $119 billion in deposits and $72 billion in assets, and SVB’s 17 branches reopened as First Citizens on Monday, the Federal Deposit Insurance Corporation said. In addition, no more troubling news on Deutsche Bank emerged over the weekend, which also helped the positive tone toward the financials.
Treasury yields exploded higher across the curve, as demand for safe-haven assets ebbed after the mostly positive news. With deposits fleeing from banks into insured money markets, many are concerned loan portfolio restrictions and tighter lending could be the end result. This comes at a time when commercial real estate concerns are also starting to be raised across Wall Street. The inversion of the two-year and 10-year notes remained in place, as the short paper closed Monday at 4.02%, up a whopping 24 basis points, while the other finished the day at 3.53%. The ongoing inversion suggests recession is on the way.
Brent and West Texas Intermediate crude both exploded higher, following through on last week’s 3.5% gain. Brent ended Monday up 4.25%, while WTI closed up 5.4%. Top analysts pointed to the halt in Kurdistan’s 400,000 barrels per day as a reason for the strength in the two benchmarks. The lighter tone on the financials with no new blow-ups was cited as a tailwind as well.
Natural gas had another bad day, closing down over 5% to the $2.09 level. Gold was down just over 1% after a big move higher last week and closed at $1957. Bitcoin, which surged higher last week as well, finished the Monday session down over 3% at $27,016.
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, March 28, 2023.
Alphabet Inc. (NASDAQ: GOOGL): Truist Financial reiterated a Buy rating with a $120 target price. The consensus target is $125.04, and shares closed on Monday at $102.46.
BioNTech S.E. (NASDAQ: BNTX): Citing earnings that have peaked and technicals that are lagging, Zacks named this vaccine maker as its Bear of the Day. Shares have traded as high as $189.07 in the past year but closed most recently at $123.60. That is down almost 18% year to date.
Caterpillar Inc. (NYSE: CAT): Baird’s downgrade to Underperform from Neutral included a target price cut to $185 from $230. The consensus target is up at $249.46. The stock closed on Monday at $218.
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