The futures traded higher as we hit the middle of the trading week. All the major indexes closed lower on Tuesday, with the Dow Jones Industrial the big loser with a decline of over 1%. Some disappointing earnings from retail big-box giant Home Depot set the tone early, as the company missed revenue expectations by the biggest level in 20 years and cut forward forecasts as shoppers are pulling back on spending. This came on the heels of the retail sales data for April that were in line with expectations.
The big issue that remains front and center is the debt ceiling negotiations, as Treasury Secretary Janet Yellen reiterated that June 1 remains the drop-dead date for a solution.
Treasury yields were higher across the curve Tuesday, as sellers followed through from Monday’s action. Some of the selling could have been a reaction to Richmond Federal Reserve President Barkin’s comments that financial instability should not keep the Fed from raising rates. The 10-year note closed that day at 3.55%, while the two-year paper closed at 4.09%. Bond traders view the inversion as a recession warning.
Brent and West Texas Intermediate crude both closed lower on Tuesday, after a bullish start to the week. Various outlets reported during the day that the government is soliciting bids for 3 million barrels to start refilling the Strategic Petroleum Reserve in August. That is not much, considering that over 200 million barrels have been sold. Natural gas was flat on Tuesday, closing at $2.36.
Gold was also a loser on the day, closing down 1.47% at $1,993 as profit-taking in the bullion continues. Bitcoin also finished the day lower, closing at $26,980. Less than a month ago, the cryptocurrency giant was trading over $30,000.
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, May 17, 2023.
Amdocs Ltd. (NASDAQ: DOX): Barclays upgraded the stock to Overweight from Equal Weight and raised its $100 target price to $115. The consensus target is $101.17. The stock closed at $93.79 on Tuesday.
America Movil SAB de C.V. (NYSE: AMX): New Street raised its Neutral rating to Buy from and its $21 price target to $27. The consensus target is $21.23. The shares closed on Tuesday at $22.95.
Amgen Inc. (NASDAQ: AMGN): Jefferies reiterated a Buy rating with a $325 target price. The consensus target of $255.60 is closer to Tuesday’s $227.88 per share close.
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