The futures traded lower Thursday, after a mixed day across Wall Street that saw the S&P 500 and the Nasdaq finish the day higher, while the Dow Jones industrials closed lower. Inflation, as measured by the April consumer price index, rose 4.9% year over year, shy of estimates for 5.0%. The core CPI (less food and energy prices) rose 5.5%, versus estimates of 5.5%. While the numbers are still stubbornly firm, Wall Street is finally getting a glimpse that the year-long increases in interest rates are starting to work.
The big worry now remains the sword of Damocles that is the debt ceiling issue. While the president and Speaker of the House met on Tuesday, nothing was settled and they will meet again Friday. Note that when Congress and President Obama fought the same battle in 2011, the market was down 19% in three weeks before they raised the limit two days before an expected default.
Treasury yields dropped across the curve Wednesday, as the buyers returned after a two-day hiatus. The inflation print likely drove the buying, as some in the bond market had anticipated a much hotter report for April. The 10-year closed at 3.44%, down eight basis points, while the two-year closed at 3.91%, down 11 basis points.
Brent and West Texas Intermediate crude finished the day lower, following a big three-day rally for the energy complex. Once again, demand concerns drove the selling. Natural gas closed Wednesday’s session at $2.19, down almost 3.5%. Gold finished the day modestly lower after a strong move higher this week, while Bitcoin finished up slightly higher at $27,402.
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 Thursday, May 11, 2023.
AdaptHealth Corp. (NASDAQ: AHCO): Stifel downgraded the stock to Hold from Buy and chopped the target price to $11 from $18. The consensus target is $18.33. The shares closed on Wednesday at $11.06.
Airbnb Inc. (NYSE: ABNB): Needham reiterated a Buy rating but trimmed its $155 target price to $150. Barclays stayed with an Equal Weight rating, but it cut its price objective to $112 from $128. TD Cowen maintained an Outperform rating, and its $145 target price dropped to $125. The consensus target for now is $139.13. The shares closed down almost 11% on Wednesday at $113.19, despite record first-quarter revenue.
Alcon Inc. (NYSE: ALC): Baird’s upgrade was to Outperform from Neutral, and its $75 target price increased to $90. The consensus target is $85.18. Wednesday’s close at $80.64 was up close to 9% on the day after stellar results.
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