The futures traded higher on Thursday, after a mixed day across Wall Street that saw the S&P 500 and Nasdaq close higher while the Dow Jones industrials and the Russell 200 ended the session lower. The big news of the day was the consumer price index numbers for August that came in slightly higher than expected, at 3.7% versus 3.6%, and it was no surprise that higher energy prices fueled the increase. The core number for August rose 0.3%, which was also hotter than expected. Given the mild market reaction, it is a pretty good bet, and the futures show, that an increase next week in the federal funds rate is unlikely.
Treasury yields were higher across the curve after the inflation report was released, but the selling in the government complex was moderate, with the aforementioned chance of an increase in the funds rate having diminished. Futures now predict a 40% chance for an increase in November and 49% for an end-of-year hike. The 10-year note closed the day at 4.25%, while the two-year paper was last seen at 4.98%, keeping the almost year-long inversion in place.
Brent and West Texas Intermediate crude closed essentially flat on the day, after trading 2% higher on Tuesday to hit the highest level for oil in 10 months. Ongoing production cuts and the lack of support for oil and gas drilling have driven prices higher this year, and more gains could be in store, as the Saudis and OPEC have zero intentions to restore production. Brent closed at $92.14, while WTI finished at $88.78. Natural gas was slightly lower, closing at $2.71.
Gold closed slightly lower as the CPI print came in just above expectations. While the gold market has struggled some, fears over the potential for numerous black swan events next year have kept the selling pressure down. The December contract finished the day at $1,932.40, down 0.14%. Bitcoin followed through on Tuesday’s big short-squeeze move, closing up 1.34% at $26,185.10.
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 analyst upgrades, downgrades and initiations seen on Thursday, September 14, 2023.
American Airlines Group Inc. (NASDAQ: AAL): TD Cowen reiterated a Market Perform rating but lowered its target price to $10. The target is $17.72, and the closing share price on Wednesday was $13.31.
Apple Inc. (NASDAQ: AAPL): BofA Securities reiterated a Neutral rating and trimmed its $210 price target to $208. Goldman Sachs reiterated a Buy rating but lowered its target price to $216 from $222. The consensus target is $186.05. Wednesday’s close was at $174.21.
Ares Commercial Real Estate Corp. (NASDAQ: ACRE): Wells Fargo initiated coverage with an Equal Weight rating and a $10 target price. The consensus target is $110.70. Wednesday’s close was at $10.30.
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