The futures were trading lower after a grim day across Wall Street that saw all the major indexes finish lower on the day. As expected, the Federal Reserve held rates steady, which kept federal funds at 5.25% to 5.50% until at least November. While that issue has been sidelined for a couple of months, the ongoing UAW strike, the potential for some stiff consumer headwinds and seasonality are all front and center for investors, as the big tech stocks that have driven the rally this year are starting to see some selling after big moves higher.
Treasury yields were higher across the curve, and the recent selling has pushed many maturities to highs not seen in years. The sellers were focused on maturities from the two-year, which closed at 5.18%, up to the benchmark 10-year note, which finished the session at 4.41%, the highest since 2007. While the inversion between the two still indicates a recession is on the way, it is likely a 2024 event now.
Brent and West Texas Intermediate crude both took a breather Wednesday, after a strong move higher over the past 10 days. Another large inventory draw somewhat kept the recent bid in place however, as Brent finished the day down 0.81% at $93.53, while WTI closed down 1% at $90.28. Natural gas also finished the day lower, down almost 4% at $2.73.
Gold closed lower on the day, with the December contract closing down 0.12% at $1,951.30. Top strategists cited the rising U.S. debt as a factor (it was announced the United States had reached a $33.04 trillion in outstanding debt). That number reflects a stunning 50% increase in federal spending between fiscal 2019 and fiscal 2021 contributed to the debt topping the $33 trillion level. Bitcoin closed modestly lower on the day at $27,123.90.
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 analyst upgrades, downgrades and initiations seen on Thursday, September 21, 2023.
Azul S.A. (NYSE: AZUL): Goldman Sachs upgraded the stock to Buy from Neutral and raised the target price to $18.30 from $14.90. The consensus target is $15.90. The stock was last seen on Wednesday trading at $9.25, up almost 12% on the day after the upgrade and positive analysts’ comments.
Bausch Health Companies Inc. (NYSE: BHC): Jefferies upgraded the stock to Buy from Hold and lifted its $9 target price to $16. The consensus target is $8.50. Wednesday’s close at $8.34 was up almost 8% after the upgrade and the news the CFO had resigned.
CBOE Global Markets Inc. (CBOE): Oppenheimer reiterated an Outperform rating and a $162 target price. The consensus target is $157.38. The shares closed on Wednesday at $155.13.
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