The futures traded higher after a mixed close across Wall Street. All the major indexes finished Tuesday lower except for the Nasdaq, which eked out a small gain. Follow through from Monday’s solid performance stayed firmly in place until the noon hour, when the sellers returned. After the market closes Wednesday, Nvidia will release earnings results for the quarter, which likely will be a market-moving data point.
While the trading winds have seemingly reversed after three rough weeks for the market, Friday’s speech from Federal Reserve Chair Powell will likely indicate the need for continued vigilance on the inflation front, so any spike in the consumer price index next month could lead to yet another increase in the federal funds rate in late September.
Treasury yields were mixed across the curve on Tuesday, as the longer maturities saw some buying while there was selling in the shorter-dated debt. Bond traders will also be laser-focused on the Fed chair’s speech, which is likely to tout the “higher for longer” mantra. The 10-year note closed the day at 4.33%, while the two-year paper hit the highest yield since March, finishing the session at 5.05%. With the inversion closing in on a year, traders still feel a recession is on the way in 2024.
Brent and West Texas Intermediate crude closed the day lower, as reports filtered out that for the first time ever U.S. oil and gas companies spent more on stock buybacks than on exploration and production. The falling rig count, plus production cuts by OPEC and the Saudis, is aimed at keeping crude at current levels. Brent finished the day at $84.08, while WTI was last seen at $80.25. Natural gas finished the day lower at $2.55.
Gold finished Tuesday slightly higher, as the dollar weakened some and retailers warned of slowing sales and losses from theft. Analysts cited short covering and bargain hunting for the strength, albeit somewhat tepid. The final trade for the December futures contract was posted at $1,925.90. Bitcoin also closed lower at $25,840.60, down over 1% on 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 Wall Street analyst upgrades, downgrades and initiations seen on Wednesday, August 23, 2023.
Alibaba Group Holding Ltd. (NYSE: BABA): Zacks selected this as its Bull of the Day stock, suggesting that it is time to “plow back into this Chinese online giant.” Shares last closed at $88.08, and the $141.01 consensus price target would be a 52-week high.
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