The futures were trading lower as we begin August, after a very solid July for stock investors. We started the trading week where we left off, with all the major indexes higher as investors prepare for a continued deluge of second-quarter earnings reports, which so far have been reasonably strong. Typically trading volumes drop some in August as many head out for some final summer fun, and school starts across many sections of the country by the middle of the month. With Apple and Amazon set to report this week, technology traders will keep a close eye on not only the results but the forward commentary as well.
Treasury yields were flat to modestly lower Monday, as some buyers from Friday returned, especially in the longer-dated maturities. The benchmark 10-year note finished the day at a 3.97% yield, while the two-year paper closed at 4.89%. With the inversion back over 90 basis points, long-time bond market analysts still see the potential for a recession, although it may have been moved out to 2024.
Brent and West Texas Intermediate crude both closed higher again on Monday, after closing out a fifth straight week of gains on Friday. Oil finished July up over 15%, for the best month since January of 2022. The same bias remained in place as production cuts by the Saudis and OPEC, plus an increase in demand (some also have cited more traveling by car this summer as airline delays mount), have kept a solid tailwind behind the sector. Natural gas also had a solid start to the week, closing up modestly at $2.64.
Gold also traded higher on Monday, as many analysts expect the economy to weaken as the effects of the 16-month interest rate increases start to really be felt as the year moves on. The July jobs data will be watched closely on Friday. The nonfarm payroll numbers are expected to come in at 200,000. Bitcoin closed on Monday at $29,239.30.
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 Wall Street analyst upgrades, downgrades and initiations seen on Tuesday, August 1, 2023.
Adobe Inc. (NASDAQ: ADBE): Morgan Stanley lifted its Equal Weight rating to Overweight and its $510 target price to $660. The consensus target is $547.43. The shares closed over 3% higher on Monday at $546.17 after the upgrade.
Airbnb Inc. (NASDAQ: ABNB): Melius started coverage with a Neutral rating and a $160 target price. The consensus target is $122.14, and Monday’s close was at $152.19.
Apple Inc. (NASDAQ: AAPL): Piper Sandler reiterated an Overweight rating and boosted its $180 target price to $220. The consensus target is $193.16. Monday’s final trade was for $196.45 a share. Apple is scheduled to report quarterly results on Thursday.
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