The futures were flat as we start off the trading week. This came after a big Friday rally that saw all the major indexes close higher, with the Dow Jones industrials leading the way with a strong 2% gain. Despite a jobs number that came in much hotter than expected, the unemployment rate, which was the lowest since 1969, ticked higher to 3.7% after dipping as low as 3.4% in April. The data reinforced the belief by many across Wall Street that the Federal Reserve could still raise rates this month, while others feel that despite the strength in the jobs number the Fed members will pause to gather more incoming economic statistics.
Treasury yields spiked higher on Friday after the jobs report hit, and after a strong rally last week when many were touting the “pause in June” mantra. The biggest increases were on the short end, with the two-year note jumping a whopping 15 basis points to close at 4.48%, while the 10-year paper closed up seven basis points at 3.68%. The widening inversion between the two suggests recession is still on the way.
Brent and West Texas Intermediate crude both closed the week on a strong note, each finishing up over 2%. Most traders felt that OPEC, which had an in-person meeting over the weekend, would keep production the same, which is exactly what happened. The surprise was that Saudi Arabia voluntarily cut its production by 1 million barrels per day for a month starting in July, which may be extended. Many of the OPEC delegates still feel that demand from China will increase over the second half of 2023. Natural gas also finished the day higher at $2.21.
Gold was a loser Friday, closing at $1964.30, falling on the strong jobs number but still finishing the week higher and breaking a three-week losing streak. The increase in the unemployment numbers from April makes the endgame for rates yet another wild card for bullion traders. Bitcoin rallied to close almost 1% higher Friday at $27,021.
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, June 5, 2023.
Apple Inc. (NASDAQ: AAPL): Jefferies reiterated a Buy rating with a $210 target price. The consensus target is down at $180.27, near Friday’s close at $180.38.
Automatic Data Processing Inc. (NYSE: ADP): UBS started coverage with a Neutral rating and a $230 target price. The consensus target is $231.19. Friday’s closing share price was $215.73.
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