The futures were higher as we start the new trading week, after all the major indexes closed lower on Friday. With inflation and jobs data out of the way for now, and earnings for the first quarter all but over, all the attention on Wall Street now will turn to the debt limit negotiations. For some reason, the scheduled meeting for last Friday between President Biden and Speaker McCarthy was canceled, although staffers did continue to meet. Now we are just over two weeks out from a possible default. Needless to say, no agreement would be a catastrophe for the stock and bond markets here and abroad.
Treasury yields were up across the curve on Friday, with the biggest rise coming on the short maturities as the two-year closed at 3.99% and the 10-year note at 3.46%. Bond traders are also keeping a very close eye on the debt ceiling discussions. One item sending yields higher to end the week was Federal Reserve Governor Bowman’s comments that if inflation lingers and stays elevated, and the labor market stays tight, rates may still need to go higher.
Brent and West Texas Intermediate crude were both down to complete a lousy week for the energy complex. The weakness was countered by the news that oil and gas drilling in the United States saw the biggest weekly drop in rigs since June of 2020, according to sources. Natural Gas finished the day higher, closing up almost 4% at $2.27.
Gold finished the day flat at $2,015, while Bitcoin was absolutely mauled again, closing down over 1% at $26,682, finishing up the worst week for the crypto giant since November. Fading liquidity and the potential for new government regulations were cited as the reasons for the huge decline last week.
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 Monday, May 15, 2023.
American States Water Co. (NYSE: AWR): Wells Fargo upgraded the stock to Equal Weight from Underweight and bumped its $90 target price to $94. The consensus target is $93.33. The stock closed on Friday at $91.68.
Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR): SVB Securities downgraded the shares to Market Perform from Outperform and has a $40 target price. The consensus target is up at $61.93. The shares closed on Friday at $39.32.
Bright Horizons Family Solutions Inc. (NYSE: BFAM): Though Credit Suisse downgraded the stock to Neutral from Buy, it also raised its $95 target price to $101. That compares with an $83.00 consensus target and Friday’s closing print of $88.86.
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