The futures were trading higher to end the holiday-shortened trading week after the nonfarm payroll numbers came in greater than expected. All the major indexes finished the day higher on Thursday after the House of Representatives passed the debt ceiling limit bill that essentially kicks the proverbial can down the road until 2025. All eyes will now focus on June 13, when the Federal Reserve will meet for its June meeting and the consumer price index numbers for May will be released. A big inflation number combined with a still-strong job market may be enough for yet another 25-basis-point hike in rates.
Treasury yields were once again lower, as safe-haven buyers continued to add to positions. With the debt deal done (the Senate passed the bill Thursday night), bond traders also will be preparing for the Fed meeting. With mortgage rates back over 7% for the third time this year, it is a good bet that even if the Fed does pause in June, it could very well be back raising rates again in July.
Brent and West Texas Intermediate both posted a solid day, with both of the benchmarks up well over 2% after a dreadful week that saw prices hammered down to levels not seen since mid-March. Crude inventory remained about 2% below the five-year average posted for this time of year. Once again, the debt bill passage provided a tailwind, and a smaller than expected inventory build also added support. Natural gas closed lower, down almost 5% to $4.16.
Gold closed higher for the second day in a row at $1,995 for the August contract, which kept a rally in place after the bullion had recently fallen to two-month lows. Lower eurozone inflation numbers and hopes for a Fed pause helped to push prices higher. Bitcoin had another weak day, tumbling 1.1% to close at $26,924. Six weeks ago, the cryptocurrency giant traded over the $30,000 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 Friday, June 2, 2023.
Advance Auto Parts Inc. (NYSE: AAP): When BofA Securities downgraded the shares to Neutral from Buy, its $178 target price tumbled to $85. The consensus target is $123.63 for now. The stock ended Thursday’s session at $68.03, down close to 7% on the day, after dreadful results posted earlier this week and the dividend slashed.
Aramark (NASDAQ: ARMK): UBS initiated coverage with a Neutral rating and a $42 target price. The consensus target is $43.33. The stock closed on Thursday at $39.05.
AutoZone Inc. (NYSE: AZO): BofA Securities raised its Underperform rating to Neutral and its $2,120 target price to $2,465. The consensus target is up at $2,759.29, and Thursday’s closing share price was $2,374.68.
Bluebird Bio Inc. (NASDAQ: BLUE): Barclays upgraded the stock to Overweight from Equal Weight and raised its $7 target price to $8. The consensus target is $6.90. Thursday’s $3.54 close was up almost 6% for the day on the upgrade.
Chevron Corp. (NYSE: CVX): The Sector Perform rating at RBC Capital Markets is now at Outperform. The analyst also raised the $165 price target to $180, which is still below the $189.25 consensus target. Thursday’s closing trade was for $152.16 a share.
Chewy Inc. (NYSE: CHWY): Gordon Haskett’s upgrade was to Buy from Hold, but its $40 target price is less than the $44.95 consensus target. The stock closed on Thursday at $35.84, which was up over 21% for the day on the upgrade and a very positive earnings report for the quarter.
CSX Corp. (NASDAQ: CSX): UBS upgraded the shares to Buy from Neutral and its target price to $37 from $33. The consensus target is $35.10. The stock closed on Thursday at $31.38.
C3.ai Inc. (NYSE: AI): As Wedbush upgraded the shares to Outperform from Neutral, the price target doubled to $50 from $24. The consensus target is just $19.70. The stock closed 13% lower on Thursday at $34.72 after solid quarterly results were accompanied by a tepid outlook.
Domino’s Pizza Inc. (NYSE: DPZ): J.P. Morgan upgraded the stock to Overweight from Neutral. The firm also lifted its $340 target price to $360, above the $350.78 consensus target. The stock closed on Thursday at $296.67.
Dycom Industries Inc. (NYSE: DY): Raymond James started coverage with an Outperform rating and a $120 target price. The consensus target is $128.25. Thursday’s close was at $103.09.
Equitrans Midstream Corp. (NYSE: ETRN): Wolfe Research upgraded the shares from Peer Perform to Outperform with an $11 target price. The consensus target is $7.56. The shares closed on Thursday at $8.85. That was up almost 5% for the day on the upgrade and the possible positive ramifications from the debt ceiling bill.
Exxon Mobil Corp. (NYSE: XOM): RBC Capital Markets cut its Outperform rating to Sector Perform with a $125 target price. The consensus target is $127.79. Thursday’s final trade was for $103.36 a share.
24/7 Wall St.Genuine Parts Co. (NYSE: GPC): When BofA Securities upgraded the shares to Buy from Neutral, its target price rose to $189 from $185. The consensus target is $175.89. The stock closed on Thursday at $149.21.
Macy’s Inc. (NYSE: M): Gordon Haskett raised its Hold rating to Buy and has an $18 target price. The consensus target is $23.21. The stock was last seen on Thursday trading at $13.75.
Madison Square Garden Entertainment Corp. (NYSE: MSGE): Macquarie initiated coverage with an Outperform rating and a $43 target price. The consensus target is $40.75. On Thursday, shares closed at $36.62, a one-day gain of over 4% on the initiation and the solid tape.
Micron Technology Inc. (NASDAQ: MU): Citing falling earnings estimates and pressures in China, Zacks selected this stock as its Bear of the Day. Shares have retreated more than 7% from a recent 52-week high of $74.77 to just below the consensus price target of $69.14.
Next Era Energy Partners L.P. (NYSE: NEP): BofA Securities boosted its Underperform rating to Neutral and its $53 target price to $60. The consensus target is $77.29, and Thursday’s close was at $61.39.
Okta Inc. (NASDAQ: OKTA): As J.P. Morgan downgraded the stock to Neutral from Overweight, its $95 price objective fell to $84. BMO Capital Markets cut its Outperform rating to Market Perform and reduced its $94 price target to $85. The consensus target is $94.44 for now. The shares closed on Thursday at $74.69, which was down 18% on the day despite posting solid results. Once again, the forecast was disappointing.
Phillips 66 (NYSE: PSX): TD Cowen’s upgrade was to Outperform from Market Perform. The analyst also lifted the $110 target price to $123, above the $120.86 consensus figure. The stock closed on Thursday at $93.06.
Target Corp. (NYSE: TGT): The Overweight rating at J.P. Morgan is now Neutral. The firm slashed its target price to $144 from $182. The consensus target is $178.59. The last closed at $131.16.
TFI International Inc. (NYSE: TFII): UBS’s upgrade to Buy from Neutral included a target price hike to $143 from $113. The consensus target is $129.85. Thursday’s close at $107.91 was up close to 3% for the day on the upgrade.
Toll Brothers Inc. (NYSE: TOL): Deutsche Bank started coverage with a Buy rating and a $94 price target. The consensus target is $75.83. Thursday’s closing share price was $68.70.
Veeva Systems Inc. (NASDAQ: VEEV): Guggenheim upgraded the stock to Buy from Neutral and has a target price of $226. The consensus target is $206.84. The stock closed 20% higher on Thursday at $198.13 on huge earnings for the quarter and a solid outlook for next year.
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Thursday’s top analyst upgrades and downgrades included America Movil, Avis Budget, Box, Chevron, Coty, Five9, Regeneron Pharmaceuticals, SeaWorld Entertainment, Twilio, Viking Therapeutics and Xylem.
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