The futures were trading modestly higher Wednesday, as we reach the halfway point in the trading week after another solid risk-on move where all the major indexes closed higher Tuesday. Stellar earnings from big-box retailers Walmart and Home Depot, and a producer price index reading that came in lower for October than expected (up 0.2% versus 0.4% estimates) provided the tailwind for equities.
An important component to the slowdown in wholesale inflation was a 0.1% decline in services, and that is the first decline in that metric in two years. While Wall Street and investors cheered the news, the reality is inflation is still way above the Federal Reserve’s 2% goal.
Treasury yields were down across the curve, as buyers jumped in following the positive inflation data. The yield for the benchmark 10-year note fell to 3.80%, the lowest since early October. The inversion with the two-year note stayed in place, as the shorter maturity closed at 4.35%.
Brent and West Texas Intermediate crude both ended the day higher after a huge inventory draw and reports that oil inventories in the developed economies dropped to the lowest levels since 2004. Analysts also warned that the upcoming Russian embargo by the European Union on crude oil and products could tighten supplies even more as we head into the winter. Gold and Bitcoin both closed higher on the day.
24/7 Wall St. reviews dozens of analyst research reports each day of the week 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 Wednesday, November 16, 2022.
CarParts.com Inc. (NASDAQ: PRTS): Citing four straight beats, modest growth and margin expansion, Zacks selected this as its Bull of the Day stock. Shares last closed at $5.52, and the consensus price target of $11.70 represents about 112% upside potential.
Catalent Inc. (NYSE: CTLT): Zacks points out that earnings estimates for its Bear of the Day have slipped since the most recent results. Shares have traded as high as $136.13 in the past year but closed most recently at $48.91, which is down almost 56% in the past 90 days.
CIRCOR International Inc. (NYSE: CIR): Stifel raised its $25 price target to $30 while maintaining a Buy rating. The consensus target is $26.67. The stock closed almost 8% higher on Tuesday in the wake of solid results.
Cisco Systems Inc. (NASDAQ: CSCO): BofA Securities maintained a Buy rating with a $52 target and cited the stock’s attractive valuation. The consensus target is $54.82. Tuesday’s close was at $44.90.
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