The futures traded higher to start off the week, after a big bounce back on Friday that saw all the major indexes finish the day higher and snap a three-week losing streak. This was after the big sell-off on Thursday that came on the heels of huge numbers from AI chip giant Nvidia. All eyes on Friday were once again on Federal Reserve Chair Powell, who delivered his annual address at the Jackson Hole Symposium. The song remained the same, as he hammered some of the same themes as last year.
While noting that progress is being made in the inflation fight, Powell warned once again that “some pain” may still need to be endured to bring inflation down to the 2% target. He also noted that inflation remains “too high” and that the Fed is prepared to raise rates further to achieve its goal. The consumer price index data for August, which will be released on September 13, could prove to be a deciding factor for a rate hike at the end of the month.
Treasury yields were mostly higher across the curve on Friday, with the one- to seven-year maturities seeing the biggest selling. Needless to say, the bond market will keep a close eye on the data as we head into the fall. The 10-year note closed the day at 4.24%, while the two-year short paper was last seen at 5.08%. The inversion has been in place for almost a year and tends to precede recession.
Brent and West Texas Intermediate crude both roared back to life Friday after a rough stretch for the oil markets. Both of the major benchmarks finished the day up over 1%, at $84.61 and $79.96, respectively. The gains were not enough to prevent a second consecutive weekly drop after a strong summer rally. In addition, natural gas closed the week up 1.2% at $2.55.
Gold finished the week modestly lower, as the December contract closed at $1,940.90. Traders noted the expected hawkish stance from the Fed Chair with little surprise, as he reiterated much of what was said at the last FOMC meeting in July. Bitcoin had another grim day, closing down 0.62% at $26,001.90.
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 Monday, August 28, 2023.
Abercrombie & Fitch Co. (NYSE: ANF): Morgan Stanley upgraded the stock to Equal Weight from Underweight. The analyst also lifted its $18 target price all the way to $51, shy of the $52 consensus target. The stock closed on Friday at $50.16 a share.
Affirm Holdings Inc. (NASDAQ: AFRM): Goldman Sachs lifted its $14.50 target price on the stock, which it has rated at Neutral, to $16.50. The consensus target is $14.71 for now. Friday’s $17.79 close was up 29% on the day after it posted earnings that soared for the quarter.
APA Corp. (NYSE: APA): Goldman Sachs raised its $30 target price on the Sell-rated shares to $34. The consensus target is higher at $49.19. Friday’s final trade was for $42.73 a share.
Chewy Inc. (NYSE: CHWY): Wedbush reiterated an Outperform rating but cut its $45 target price to $31. The consensus target is $44.08. The stock closed on Friday at $25.76.
Ciena Corp. (NYSE: CIEN): Recommending caution ahead of earnings, Zacks selected this stock as its Bear of the Day. Shares have traded as high as $54.25 in the past year but closed most recently at $41.49. That is down more than 18% year to date.
Crestwood Equity Partners Inc. (NYSE: CEQP): The Raymond James downgrade was from Outperform to Market Perform with a target price of $30. The consensus target is $28.50. Friday’s close was at $28.08.
Cullen/Frost Bankers Inc. (NYSE: CFR): When UBS upgraded the stock to Neutral from Sell, the $100 price target rose to $103. The consensus target is $117.71. The last trade on Friday was for $95.13 a share.
Digital Realty Trust Inc. (NYSE: DLR): Though Deutsche Bank cut its Buy rating to Hold, its target price increased to $131 from $112. That compares with the $123 consensus target and Friday’s closing print of $126.28.
Dollar Tree Inc. (NASDAQ: DLTR): Telsey Advisory reiterated an Outperform rating. The analyst also trimmed the $162 target price to $160, while the consensus target is $164. The stock closed on Friday at $125.95.
FactSet Research Systems Inc. (NYSE: FDS): The RBC Capital Markets downgrade to Sector Perform from Outperform came with a target price cut to $464 from $500. The consensus target is lower at $438.29. Friday’s closing share price was $429.56.
Fidelity National Information Services Inc. (NYSE: FIS): Evercore ISI downgraded the stock to In Line from Outperform. The firm also lowered its target price to $60, below the consensus target of $73.93. The stock closed on Friday at $54.73.
GE Healthcare Technologies Inc. (NASDAQ: GEHC): Argus started coverage with a Buy rating and a $80 price objective. The consensus target is $89.67, and the shares closed on Friday at $68.59.
Hasbro Inc. (NASDAQ: HAS): Stifel reiterated a Buy rating and raised its target price to $94 from $79. The consensus target is $81.00. The shares were last seen on Friday trading at $69.68, which was up almost 6% for the day.
Ichor Holdings Ltd. (NASDAQ: ICHR): Needham reiterated a Buy rating for the company, but it also trimmed its $42 target price to $40. The posted consensus target is $41.00, and the shares ended Friday’s session trading at $33.75.
Netflix Inc. (NASDAQ: NFLX): Loop Capital raised its Hold rating to Buy and its price target to $500 from $475. The consensus target is $421.20. Friday’s close was at $416.03.
Nordstrom Inc. (NYSE: JWN): Although Telsey Advisory reiterated a Market Perform rating on the popular high-end retailer, it also trimmed its target price to $19 from $21. The consensus target is $19.20. The stock closed on Friday at $15.52, down almost 8% for the day despite earnings that were better than expected.
Palo Alto Networks Inc. (NASDAQ: PANW): Zacks makes the case that its Bull of the Day stock is headed for all-time highs. Its shares last closed at $230.76 apiece, and its $271.90 consensus price target would be an all-time high.
Trex Co. Inc. (NYSE: TREX): Citigroup initiated coverage with a Neutral rating, and it has a $72 target price. The consensus target is $76.56, and the shares closed at $68.63 on Friday.
Shift4 Payments Inc. (NYSE: FOUR): Morgan Stanley upgraded the stock to Equal Weight from Underweight and raised their target price on the stock to $57 from $52. The consensus target is much higher at $83.05. The shares closed Friday at $55.76.
Western Alliance Bancorp. (NYSE: WAL): Piper Sandler resumed coverage with an Overweight rating and a $60 target price. The consensus target is $58.63. The shares closed on Friday at $49.13.
Workday Inc. (NASDAQ: WDAY): Needham reiterated a Buy rating and raised its $220 target price to $250. The consensus target is $239.79. The shares ended Friday trading at $236.97 a share.
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Friday’s top analyst upgrades and downgrades included Abercrombie & Fitch, Amazon.com, AMC Entertainment, Analog Devices, Discover Financial Services, Estee Lauder, Foot Locker, International Flavors & Fragrances, NetApp, Nvidia, Peloton Interactive and Xcel Energy.
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