The futures traded lower on Tuesday, after a decidedly mixed start to the final quarter of 2024 in the wake of a last-minute budget deal averted a government shutdown over the weekend. The Dow Jones industrials closed lower on Monday, and the S&P 500 eked out a small gain, while the tech-heavy Nasdaq closed higher after some bullish commentary on the Magnificent 7 from Goldman Sachs. The biggest equity loser on the day was the small-cap Russell 2000, which was hammered, closing down 1.6% at 1,756.82. One big concern mentioned over the course of trading Monday was tightening financial conditions starting to affect the economy.
Treasury yields soared once again, with some maturities trading up by double digits. The 10-year yield closed the session at 4.69%, after jumping 50 basis points higher in September. The two-year paper closed the day at 5.11%. The inversion between the two still suggests that a recession could be on the way in 2024.
After jumping almost 10% in September, both Brent and West Texas Intermediate crude closed lower on Monday. Analysts noted that OPEC’s production actually grew for the second straight month in September, despite the cuts from Saudi Arabia. Increases from Nigeria and Iran were cited for the increase. Brent closed Monday down 1.8% at $90.56, while WTI was last seen at $88.79, down 2.0%. Natural gas was also lower, closing at $2.85, down 2.66%.
Gold continued its downward spiral to start off the quarter, as the December contract closed lower by 1.07% at $1,846.20 per ounce. Strategists cited the improving ISM Manufacturing Index, which came in at 49.0% versus expectations for a 47.9% print. While better than expected, readings under 50% indicate slowing economic growth. Bitcoin was a big winner and then a loser Monday, as the cryptocurrency surged higher and at one point was by up over $1,000, before plummeting to close at $27,872, down 0.44% for 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 analyst upgrades, downgrades and initiations seen on Tuesday, October 3, 2023.
AppLovin Corp. (NASDAQ: APP): Zacks selected this as its Bull of the Day stock, citing its AI-enhanced offerings and improved outlook. Shares last closed at $40.82, which is up more than 58% year to date.
Block Inc. (NYSE: SQ): Monness Crespi & Hardt started coverage with a Buy rating and a $70 target price. The consensus target is $81.58. Shares closed at $43.18 on Monday.
Chubb Ltd. (NYSE: CB): J.P. Morgan cut its Overweight rating to Neutral with a $250 target price. The consensus target is $240.11. The shares were closed on Monday at $206.32.
Clorox Co. (NYSE: CLX): D.A. Davidson upgraded the stock from Neutral to Buy with a $152 target price. The consensus target is $152.18, and Monday’s close was at $130.32.
ConocoPhillips (NYSE: COP): Jefferies reiterated a Buy rating with a $143 target price. The consensus target is $134.91, and Monday’s final trade was for $117.12 a share.
Datadog Inc. (NASDAQ: DDOG): As Piper Sandler upgraded the shares to Overweight from Neutral, its $88 target price popped to $115. The consensus target is $105.34. The stock closed on Monday at $91.84.
FedEx Corp. (NYSE: FDX): Susquehanna’s upgrade was to Positive from Neutral, and the $225 target price jumped to $315. That compares with a $281.46 consensus target and Monday’s $265.10 closing share price.
Global Payments Inc. (NYSE: GPN): Monness Crespi & Hardt started coverage with a Buy rating. Its $175 target price is well above the consensus target of $146.00. Shares were last seen trading at $115.88 on Monday.
Insulet Corp. (NASDAQ: PODD): Though Jefferies upgraded the stock to Buy from Hold, its target price slipped to $240 from $260. The consensus target is $280.13. Monday’s $165.04 closed was up almost 4% for the day due to the upgrade.
Invitation Homes Inc. (NYSE: INVH): Evercore ISI upgraded the stock to Outperform from In Line, yet the analyst trimmed the $38 target price to $37. The consensus target is $37.59. Monday’s close was at $31.28.
NextEra Energy Partners L.P. (NYSE: NEP): Wells Fargo’s downgrade to Equal Weight from Overweight came with a target price cut from $80 all the way to $33. The consensus target is $61.75 for now. The stock closed almost 17% lower on Monday at $24.73, after multiple downgrades due to missed estimates and a dividend cut late last week.
Nextracker Inc. (NASDAQ: NXT): UBS initiated coverage with a Buy rating and a $50 price target. The consensus target is $48.94. Monday’s close was at $39.03.
Nvidia Corp. (NASDAQ: NVDA): Goldman Sachs reiterated a Buy rating with a $605 target price while adding the stock to the firm’s Conviction List of top picks. The consensus target is higher at $627.71. The stock ended Monday trading at $447.82 a share.
Norfolk Southern Corp. (NYSE: NSC): The Buy rating at BofA Securities was cut to Neutral and the $266 target price reduced to $215. The consensus target is $248.65. The stock closed on Monday at $187.
Okta Inc. (NASDAQ: OKTA): Goldman Sachs maintained a Buy rating with a $100 target price, and it added the stock to the firm’s Conviction List of top picks. The consensus target is $95.71, and Monday’s close was at $80.72.
PayPal Holdings Inc. (NASDAQ: PYPL): Monness Crespi & Hardt started coverage with a Buy rating. Its $100 target price is well above the consensus target of $85.88, and shares closed at $58.56 on Monday.
Rivian Automotive Inc. (NASDAQ: RIVN): Evercore ISI’s upgrade was from In Line to Outperform with a $35 target price. That compares with a $29.09 consensus target and Monday’s closing print of $23.66.
SolarEdge Technologies Inc. (NASDAQ: SEDG): Barclays slashed its $272 target price to $152 while downgrading the shares to Equal Weight from Overweight. The consensus target is $285.44 for now. The stock closed on Monday at $122.56, over 5% lower for the day, due to the downgrade.
Toast Inc. (NYSE: TOST): When Mizuho downgraded the stock to Neutral from Buy, it cut its $30 target price to $16. The consensus target is $25.41. Monday’s close was at $18.33.
Xylem Inc. (NYSE: XYL): Melius upgraded the shares to Overweight from Neutral, but its $122 target price is less than the consensus target of $124.10. The stock closed on Monday at $91.79.
Zscaler Inc. (NYSE: ZS): Piper Sandler’s upgrade to Overweight from Neutral included a target price boost to $190 from $160. The consensus target is $184.67. The shares ended trading on Monday at $160.89.
Five top Dow stocks have lagged and are offering investors some of the best entry points in years. For growth stock investors who are patient, these dividend payers offer some big-time upside potential.
Monday’s top analyst upgrades and downgrades included AbbVie, Adobe, Advance Auto Parts, Anheuser-Busch InBev, Bumble, Fortinet, Nike and Palo Alto Networks.
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