The futures were trading mixed, after another rebound day across Wall Street that saw all the major indexes close modestly higher after some big afternoon selling. The initial tailwind for the morning rally was the consumer price index (CPI) report that came in slightly below estimates but still much higher than the Federal Reserve’s target. While traders and investors breathed a sigh of relief on the print, the reality is that oil prices did not move above the $80 level until almost August, and they are likely to stay there all month long. That could make the August CPI reading a ticking time bomb.
Treasury yields were higher after the somewhat surprising CPI print, and now Wall Street will wait until September for the August report, which becomes the next hurdle. Should the numbers come in higher next month, that would almost guarantee a 25-basis-point increase when the Fed meets on September 19 and 20. The 10-year note closed Thursday at 4.08%, while the two-year paper was last seen at 4.85%. The spread between the two still anticipates recession in the future.
Brent and West Texas Intermediate crude both took a breather from the recent rally in the energy complex, as both of the benchmarks finished the day lower. With demand issues still facing OPEC, which saw production fall 836,000 barrels per day in July, it is a solid bet that the Saudi 1 million per day production cut, which has already been extended through September, could remain in effect even longer. Brent closed at $86.40, while WTI finished the day at $82.89. Natural gas traded flat and closed at $2.78.
Gold closed lower on Thursday, after an initial rally following the higher than expected weekly jobless claims and the tamer report on inflation for July. The December contract closed at $1,945.10. Bitcoin closed on Thursday at $29,439.60 down 0.42%
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 Friday, August 11, 2023.
AppLovin Corp. (NASDAQ: APP): Goldman Sachs doubled its $25 target price on the Buy-rated stock to $50. The consensus target is $28.47 for now. The stock closed 26% higher on Thursday at $37.20 after the company crushed estimates and on potential for the company’s updated AI engine.
Crown Castle Inc. (NYSE: CCI): BofA Securities downgraded the shares to Neutral from Buy and has a $115 target price. The consensus target is up at $129.12. Thursday’s closing share price was $104.69.
Cryoport Inc. (NASDAQ: CYRX): Stephens cut its Overweight rating to Equal Weight with a $15 target price. The consensus target is $23.50, and Thursday’s close was at $13.41.
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