The futures were lower after a serious risk-off day that saw all the major indexes close lower despite huge ADP employment numbers and some solid earnings. The sell-off got a huge tailwind when rating agency Fitch downgraded the U.S. credit rating to AA+ from AAA, citing “a steady deterioration in standards of governance.” While that covers a lot of ground, the reality is we are swimming in debt and the current administration continues to push for more spending. Strategists around Wall Street feel that the potential for another rate hike in September will be totally dependent on incoming data between now and then.
Treasury yields were higher again Wednesday, after a big spike on Tuesday. The Fitch downgrade was the obvious negative for the government debt. All the longer maturities sold off, and once again the benchmark 10-year note and the 30-year long bond stayed above the 4% level, at 4.09% and 4.18%, respectively. While narrowing, the inversion between the two-year and 10-year paper remains in place.
Brent and West Texas Intermediate crude were hammered on Wednesday, with both closing down big despite a huge crude inventor draw. The U.S. Energy Information Administration estimated a gigantic inventory draw of 17 million barrels for the final week of July. Brent closed the day at $82.97, down 2.3%, while WTI closed at $79.23, down 2.6%. Natural gas also closed lower at $2.48, down over 3%.
Gold closed the day modestly lower, as safe-haven buying was paired with some nervous selling in the complex. Traders also cited a stronger dollar, which hit a three-week high, plus the continuing rise in Treasury yields. The December contract closed at $1,971.60, down $7.20. Bitcoin was also a midweek victim, closing down 1.4% at $29,293.10.
24/7 Wall St. reviews dozens of analyst research reports each weekday 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 Wall Street analyst upgrades, downgrades and initiations seen on Thursday, August 3, 2023.
Advanced Micro Devices Inc. (NASDAQ: AMD): Citigroup raised its Neutral rating to Buy and its $120 target price to $136. The consensus target is $121.82. The stock closed over 8% lower on Wednesday at $109.35 due to the big tech sell-off.
Caesars Entertainment Inc. (NYSE: CZR): Stifel raised its $68 price target on the Buy-rated stock to $74. The consensus target is $70.69. Wednesday’s closing share price of $55.29 was down over 4% for the day.
Cambium Networks Corp. (NASDAQ: CMBM): As J.P. Morgan downgraded the stock to Underweight from Neutral, its $17 target price dropped to $12. The consensus target is up at $25.79 for now. Wednesday’s $11.37 close was down 30% for the day, after the company missed earnings estimates and posted lower revenue.
Caterpillar Inc. (NYSE: CAT): Goldman Sachs raised its $274 target price on the Buy-rated stock to $315. The consensus target is just $249.35. The shares closed on Wednesday at $287.49.
Charter Communications Inc. (NASDAQ: CHTR): Wolfe Research upgraded the cable and communications heavyweight from Peer Perform to Outperform. Its $565 target price is well above the $470.68 consensus target and Wednesday’s close at $419.07.
Crestwood Equity Partners L.P. (NYSE: CEQP): J.P. Morgan’s downgrade to Underweight from Neutral included a target price trim to $28 from $30. The consensus target is $30. On Wednesday, the closing share price was $27.19.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Citing this company as a leader in the cybersecurity industry, Zacks selected it as the Bull of the Day stock. The shares last closed at $154.73 and have a consensus price target of $178.40.
Crown Castle Inc. (NYSE: CCI): Argus initiated coverage with a Buy rating and a $140 target price. The consensus target is just $129.12, and Wednesday’s close was at $106.97.
Electronic Arts Inc. (NASDAQ: EA): Though UBS downgraded the shares to Neutral from Buy, the analyst also bumped its $140 target price up to $142. The consensus target is $143.46. Wednesday’s close was at $126.31.
Estee Lauder Companies Inc. (NYSE: EL): Its Bear of the Day faces currency headwinds, growing competition, and slowing growth, says Zacks. The shares have traded as high as $284.45 in the past year but hit a 52-week low of $170.90 on Wednesday.
IDEXX Laboratories Inc. (NASDAQ: IDXX): Atlantic Equities downgraded the shares from Overweight to Neutral with a $610 target price. The consensus target is $568.38, and Wednesday’s close was at $519.18.
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Grocery Outlet Holding Corp. (NASDAQ: GO): Telsey Advisory reiterated an Outperform rating and lifted its target price to $40 from $34. The consensus target is $31.77. The stock closed on Wednesday at $33.40.
KeyCorp (NYSE: KEY): J.P. Morgan raised its Underweight rating to Neutral and its $11.50 target price to $13.50. The consensus target is $12.85. Wednesday’s close was at $11.90.
Match Group Inc. (NASDAQ: MTCH): BTIG upgraded the stock to Buy from Neutral. Its $60 target price compares with a consensus target of $53.45 and Wednesday’s $45.75 close.
Neurocrine Biosciences Inc. (NASDAQ: NBIX): Oppenheimer reiterated a Buy rating with a $150 target price. That compares with the $124.35 consensus target and Wednesday’s closing trade of $104.14.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH): Susquehanna downgraded the shares to Neutral from Positive, and its target price is set at $17. The consensus target is $20.25. Wednesday’s $18.64 close was down 4% for the day.
Omnicell Inc. (NASDAQ: OMCL): Piper Sandler downgraded the stock to Neutral from Overweight. Yet, the analyst raised the $66 price target to $70. The consensus target is $72.13. The shares closed Wednesday at $64.58, which was up almost 5% for the day in the wake of solid quarterly results.
Oshkosh Corp. (NYSE: OSK): As Baird upgraded the stock to Outperform from Neutral, its $92 target price increased to $137. The consensus target is $92.69. The shares closed on Wednesday at $101.89.
Sirius XM Holdings Inc. (NASDAQ: SIRI): Deutsche Bank’s upgrade to Hold from Sell came with a target price trim to $6.00 from $6.25. The consensus target is just $4.72, and the stock closed about that on Wednesday at $4.96.
SoFi Technologies Inc. (NASDAQ: SOFI): Mizuho reiterated its Buy rating and boosted the target price to $15 from $9. The consensus target is $9.72. The stock closed almost 3% lower on Wednesday at $10.08 on the weak tape.
SolarEdge Technologies Inc. (NASDAQ: SEDG): Though Goldman Sachs slashed its $414 target price to $353, the firm kept its Buy rating. The consensus target is $354.77 for now. The stock closed Wednesday at $195.51, which was down over 18% for the day after beating estimates but forward guidance was weak.
TG Therapeutics Inc. (NASDAQ: TGTX): Goldman Sachs upgraded the stock to Neutral from Sell but trimmed its $16 target price to $12. The consensus target is up at $30.31. The stock closed on Wednesday at $10.55.
With Wall Street giddy despite a sluggish economy and lingering recession concerns, nervous investors may want to take profits and move to seven top Buy-rated stocks that pay huge and dependable dividends and look like incredible ideas now.
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Wednesday’s top analyst upgrades and downgrades included American Eagle Outfitters, Apple, Coinbase, DoorDash, Estee Lauder, Gap, Goldman Sachs, Meta Platforms, Rivian Automotive, Shopify, SoFi Technologies, Tapestry, TechnipFMC, Uber Technologies, Valley National Bancorp and ZoomInfo Technologies.
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