The futures were mixed, after a grim Thursday that saw all the major indexes close lower. Yields once again shot higher on the worst day for the Nasdaq and the S&P 500 since late April. Strong job numbers plus indications from the Federal Reserve that rates will indeed be heading higher as early as the next meeting at the end of the month ignited the selling. Toss in the strong June rally, which many traders are looking to take profits on, and we had all of the components for a big risk-off Thursday.
The aforementioned Treasury yields exploding higher was a big part of the move lower in equities Thursday. Yields across the curve increased, especially across the short end. The two-year yield closed near a 16-year high at 4.99%, after the ADP jobs report came in almost twice as high as expected. The benchmark 10-year note closed at 4.04%, the highest since early March. While the inversion between the two narrowed some, the calls for recession may continue to emerge, despite all the strong economic data.
Brent and West Texas Intermediate crude finished the day mixed, after gaining almost 3% on Wednesday. The talk across the energy complex is still focused on the Saudi and Russian production cuts, while news of Venezuela’s exports rising over 700,000 barrels per day provided a headwind for the sector early in the session. Brent finished down 0.12% at $76.53, while WTI closed modestly higher at $71.85. Natural gas closed lower at $2.63.
Gold traded lower Thursday on the strength in the ADP jobs report. The bullion finished the day at $1,916.60. Bitcoin closed the day down almost 1% at $30,295.90.
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 Friday, July 7, 2023.
American Express Co. (NYSE: AXP): Baird downgraded the financial giant to Neutral from Outperform and has a $185 target price. The consensus target is $182.05. The stock closed on Thursday at $170.74.
Aptiv PLC (NYSE: APTV): BofA Securities upgraded the shares to Buy from Neutral and boosted its $130 target price to $140. The consensus target is $125.59, and Thursday’s close at $104.53 was up over 1% for the day, after the upgrade.
BorgWarner Inc. (NYSE: BWA): BofA Securities raised its Neutral rating to Buy and its $54 target price to $67. The consensus target is just $53.63. Thursday’s $44.88 close was up almost 4% for the day on the upgrade.
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