The futures traded higher after a mixed close across Wall Street. All the major indexes finished Tuesday lower except for the Nasdaq, which eked out a small gain. Follow through from Monday’s solid performance stayed firmly in place until the noon hour, when the sellers returned. After the market closes Wednesday, Nvidia will release earnings results for the quarter, which likely will be a market-moving data point.

While the trading winds have seemingly reversed after three rough weeks for the market, Friday’s speech from Federal Reserve Chair Powell will likely indicate the need for continued vigilance on the inflation front, so any spike in the consumer price index next month could lead to yet another increase in the federal funds rate in late September.

Treasury yields were mixed across the curve on Tuesday, as the longer maturities saw some buying while there was selling in the shorter-dated debt. Bond traders will also be laser-focused on the Fed chair’s speech, which is likely to tout the “higher for longer” mantra. The 10-year note closed the day at 4.33%, while the two-year paper hit the highest yield since March, finishing the session at 5.05%. With the inversion closing in on a year, traders still feel a recession is on the way in 2024.

Brent and West Texas Intermediate crude closed the day lower, as reports filtered out that for the first time ever U.S. oil and gas companies spent more on stock buybacks than on exploration and production. The falling rig count, plus production cuts by OPEC and the Saudis, is aimed at keeping crude at current levels. Brent finished the day at $84.08, while WTI was last seen at $80.25. Natural gas finished the day lower at $2.55.

Gold finished Tuesday slightly higher, as the dollar weakened some and retailers warned of slowing sales and losses from theft. Analysts cited short covering and bargain hunting for the strength, albeit somewhat tepid. The final trade for the December futures contract was posted at $1,925.90. Bitcoin also closed lower at $25,840.60, down over 1% on the day.

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 Wednesday, August 23, 2023.

Alibaba Group Holding Ltd. (NYSE: BABA): Zacks selected this as its Bull of the Day stock, suggesting that it is time to “plow back into this Chinese online giant.” Shares last closed at $88.08, and the $141.01 consensus price target would be a 52-week high.
Alphabet Inc. (NASDAQ: GOOGL): Wedbush initiated coverage with an Outperform rating and a $160 target price. The consensus target is $148.06, and the last trade on Tuesday was reported at $129.08.

Amazon.com Inc. (NASDAQ: AMZN): Wedbush resumed coverage with an Outperform rating. Its $180 target price compares with a consensus target of $169.29 and Tuesday’s close at $134.25.

AppLovin Corp. (NASDAQ: APP): When Jefferies upgraded the shares to Buy from Hold, its price target jumped to $50 from $20. The consensus target is $40.18 for now. The stock closed Tuesday’s session at $39.48. The company crushed earnings estimates last week, and there is big potential for the company’s updated AI engine.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH): J.P. Morgan’s upgrade to Neutral from Underweight included a target price hike to $77 from $72. The consensus target is $70.56. On Tuesday, shares closed at $69.51.

Edison International (NYSE: EIX): The Mizuho upgrade was to Buy from Neutral, and the analyst bumped the $73 target price to $75. The consensus target is $74.82. Tuesday’s close was at $69.59.

Emerson Electric Co. (NYSE: EMR): As J.P. Morgan upgraded the stock to Overweight from Neutral, its $83 target price increased to $107. The consensus target is $107.38, and the shares closed on Tuesday at $96.10.

Fabrinet (NYSE: FN): Needham reiterated a Buy rating and boosted its price target to $165 from $150. The consensus target is $135.60 for the time being. Tuesday’s $153.83 close was up a stunning 32% on the day, after the company reported outstanding earnings.

Gulfport Energy Corp. (NYSE: GPOR): BofA Securities started coverage with a Buy rating and a target price of $155. The consensus target is $137.67. The shares were last seen on Tuesday trading at $110.86.

GXO Logistics Inc. (NYSE: GXO): UBS initiated coverage with a Buy rating and a $74 target price. The consensus target is $72.53. The stock closed on Tuesday at $61.52.

Hasbro Inc. (NASDAQ: HAS): BofA Securities reiterated a Buy rating and lifted its target price to $90 from $85. The consensus target is $78.50. Tuesday’s close at $67.71 was up almost 7% for the day.

Iron Mountain Inc. (NYSE: IRM): RBC Capital Markets upgraded the stock to Outperform from Sector Perform, and the analyst raised the $58 target price to $68. That compares with a $62.75 consensus target and Tuesday’s closing share price of $59.53.

Jefferies Financial Group Inc. (NYSE: JEF): Goldman Sachs raised its Market Neutral rating to Buy and its $37 price target to $40. The consensus target is $37.33. The stock closed on Tuesday at $34.25.
Meta Platforms Inc. (NASDAQ: META): Wedbush initiated coverage with an Outperform rating and a $350 target price. The consensus target is $363.26. The shares close at $287.60 on Tuesday.

Pinnacle West Capital Corp. (NYSE: PNW): Mizuho’s upgrade to Buy from Neutral came with a price target hike to $85 from $75. The consensus target is $76.80. Tuesday’s closing trade came in at $78.75.

Pinterest Inc. (NYSE: PINS): Wedbush began coverage with an Outperform rating and a $30 target price. The consensus target is $31.91. On Tuesday, shares closed at $26.98.

Sea Ltd. (NYSE: SE): Wedbush started coverage with an Outperform rating and a $48 target price. The consensus target is way up at $75.56. Tuesday’s close was at $36.51.

Shift4 Payments Inc. (NYSE: FOUR): Raymond James boosted its Market Perform rating to Outperform, but its $74 target price is less than the consensus target of $83.56. The shares closed on Tuesday at $54.89.

Shopify Inc. (NYSE: SHOP): Wedbush started coverage with an Outperform rating and a $62 target price. The consensus target is up at $66.51, but Tuesday’s close was at $53.97.

Target Corp. (NYSE: TGT): Daiwa Securities downgraded the shares from Outperform to Neutral with a $134 target price. The consensus target is set higher for now at $152.82. The stock closed on Tuesday at $124.96. That was down almost 3% for the day after some brutal results across the retail sector.

Trip Advisor Inc. (NASDAQ: TRIP): Wedbush initiated coverage with an Outperform rating and a $17 target price. The consensus target is $18.55. Tuesday’s final share price was $15.24.

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Tuesday’s top analyst upgrades and downgrades included Applied Materials, Bill, Catalyst Pharmaceutical, CVS Health, Elastic, Hawaiian Electric Industries and Walmart.

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