The futures were mixed, after a grim Thursday that saw all the major indexes close lower. Yields once again shot higher on the worst day for the Nasdaq and the S&P 500 since late April. Strong job numbers plus indications from the Federal Reserve that rates will indeed be heading higher as early as the next meeting at the end of the month ignited the selling. Toss in the strong June rally, which many traders are looking to take profits on, and we had all of the components for a big risk-off Thursday.

The aforementioned Treasury yields exploding higher was a big part of the move lower in equities Thursday. Yields across the curve increased, especially across the short end. The two-year yield closed near a 16-year high at 4.99%, after the ADP jobs report came in almost twice as high as expected. The benchmark 10-year note closed at 4.04%, the highest since early March. While the inversion between the two narrowed some, the calls for recession may continue to emerge, despite all the strong economic data.

Brent and West Texas Intermediate crude finished the day mixed, after gaining almost 3% on Wednesday. The talk across the energy complex is still focused on the Saudi and Russian production cuts, while news of Venezuela’s exports rising over 700,000 barrels per day provided a headwind for the sector early in the session. Brent finished down 0.12% at $76.53, while WTI closed modestly higher at $71.85. Natural gas closed lower at $2.63.

Gold traded lower Thursday on the strength in the ADP jobs report. The bullion finished the day at $1,916.60. Bitcoin closed the day down almost 1% at $30,295.90.

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, July 7, 2023.

American Express Co. (NYSE: AXP): Baird downgraded the financial giant to Neutral from Outperform and has a $185 target price. The consensus target is $182.05. The stock closed on Thursday at $170.74.

Aptiv PLC (NYSE: APTV): BofA Securities upgraded the shares to Buy from Neutral and boosted its $130 target price to $140. The consensus target is $125.59, and Thursday’s close at $104.53 was up over 1% for the day, after the upgrade.

BorgWarner Inc. (NYSE: BWA): BofA Securities raised its Neutral rating to Buy and its $54 target price to $67. The consensus target is just $53.63. Thursday’s $44.88 close was up almost 4% for the day on the upgrade.
Cirrus Logic Inc. (NASDAQ: CRUS): Zacks named this stock as its Bear of the Day, with the analyst pointing out that not all semiconductor companies are printing profits. Shares have traded as high as $111.15 in the past year but closed most recently at $79.53.

Eagle Materials Inc. (NYSE: EXP): J.P. Morgan downgraded the shares to Underweight from Neutral. Yet, its $155 target price popped to $190, while the consensus target is $187.64. The stock closed almost 4% lower on Thursday at $177.28 after the downgrade.

First Horizon Corp. (NYSE: FHN): Raymond James upgraded the shares from Market Perform to Outperform with a $13 target price. The consensus target is $13.28, and shares closed on Thursday at $11.25.

Hanover Insurance Group Inc. (NYSE: THG): Piper Sandler upgraded the stock to Overweight from Neutral but trimmed its $155 target price to $153. The consensus target is $147. The stock closed on Thursday at $112.52.

HubSpot Inc. (NYSE: HUBS): Piper Sandler downgraded the stock to Neutral from Overweight while lifting the price target to $520 from $482. That compares with a $494.56 consensus target and Thursday’s closing print of $515.38.

Keurig Dr Pepper Inc. (NASDAQ: KDP): Morgan Stanley upgraded the shares to Overweight from Equal Weight. Its $37 target price is lower than the $38.33 consensus target. Wednesday’s $32.24 close was up almost 2% for the day on the upgrade.

Magna International Inc. (NYSE: MGA): When BofA Securities upgraded the shares to Buy from Neutral, its $65 target price jumped to $85. The consensus target is just $64.81, and Thursday’s closing print of $57.50 was up almost 2% for the day on the upgrade.

Martin Marietta Materials Inc. (NYSE: MLM): Although J.P. Morgan cut its Overweight rating to Neutral, the target price increased to $470 from $450. The consensus target is $449.91. The stock closed on Thursday at $441.

Meta Platforms Inc. (NASDAQ: META): Citing the launch of its Twitter rival, Zacks named this as its Bull of the Day stock. The shares last closed at $291.99 apiece, which is nearly 135% higher than at the beginning of the year.

MGIC Investment Corp. (NYSE: MTG): RBC Capital Markets downgraded the shares to Sector Perform from Outperform and trimmed its $17 target price to $15.70. The consensus target is $17.29. The shares closed over 2% lower on Thursday at $15.38.

Neurocrine Biosciences Inc. (NASDAQ: NBIX): The BMO Capital Markets upgrade to Market Perform from Underperform included a target price bump to $96 from $91. The $123.92 consensus target is higher, but Thursday’s closing print was $94.84.
Qualys Inc. (NASDAQ: QLYS): UBS started coverage with a Neutral rating and a $135 target price. The consensus target is $122.90. Thursday’s close was at $123.12.

Rapid7 Inc. (NASDAQ: RPD): UBS initiated coverage with a Neutral rating and a $50 price target. That compares with a $52 consensus target and Thursday’s closing print of $42.27.

Simon Property Group Inc. (NYSE: SPG): Wolfe Research boosted its Peer Perform rating to Outperform and has a $127 target price. The $130.20 consensus target also compares with Thursday’s closing print of $118.94.

Summit Materials Inc. (NYSE: SUM): J.P. Morgan downgraded the shares from Neutral to Underweight. But the analyst did bump the target price to $37 from $32. The consensus target is $225.38. The stock closed on Thursday at $218.24.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA): The Sell rating at UBS is now at Neutral, and the $7 target price ticked up to $8. The consensus target is $9.69. The stock closed on Thursday at $7.60.

Textron Inc. (NYSE: TXT): Citigroup initiated coverage with a Buy rating and a $90 target price. The consensus target is $80.18. Thursday’s closing share price was $66.28.

TransDigm Group Inc. (NYSE: TDG): Citigroup began covering the stock with a Buy rating. Its $1,042 target price compares with a $903.13 consensus target and Thursday’s close at $880.70.

Vulcan Materials Co. (NYSE: VMC): Though J.P. Morgan cut its Overweight rating to Neutral, its $215 target price rose to $230, above the consensus target of $225.38. The stock closed on Thursday at $218.24.

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Thursday’s top analyst upgrades and downgrades included Advanced Micro Devices, Coherent, Coinbase Global, Conagra Brands, Coty, Hertz Global, Netflix, Plug Power, Rivian Automotive, Transocean, United States Steel and Vici Properties.

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