The futures were trading higher as we get set to end an action-packed week that featured another increase in the federal funds rate and some huge earnings from mega-cap technology. All the major indexes closed lower Thursday, and the Dow Jones industrial average, which was shooting for the 14th straight winning session (which would have tied a record set in June of 1897) finally had the string broken.
Many across Wall Street feel that the interest rate hikes may be coming to an end. Federal Reserve Chair Powell noted Wednesday they could pause in September and are not forecasting a recession, at least for this year. While the stars are aligned for continued stock gains, the rally may run out of steam as we hit August next week.
Treasury yields, especially on the longer maturities, surged higher across the board on Thursday after the rate hike. Economic data coming in very positive and initial jobless claims falling to their lowest level in five months spurred on the sellers. With yields on the benchmark 10-year note and 30-year bond both now over 4%, some consumer financing could become more difficult as the year wears on.
Brent and West Texas Intermediate crude both shook off Wednesday’s bout of selling, after the EIA reported only modest draws in crude and fuel inventories, and closed higher on Thursday. Traders continue to focus on the increase in demand and very tight inventories around the world. Toss in an increase in the bullish sentiment, and the ingredients are in place for a continuation of the recent move higher. In addition, natural gas closed down 6% at $2.51.
Gold closed lower on Thursday despite a rise in new home sales, as durable goods orders jumped higher than anticipated, the dollar rallied and the first-time unemployment claims came in 7,000 below estimates. Also, second-quarter gross domestic product rose at a 2.4% annualized pace in the second quarter, topping Wall Street’s 2.0% estimate. Bitcoin closed lower at $29,170.20.
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, July 28, 2023.
Apple Inc. (NASDAQ: AAPL): Bernstein reiterated a Market Perform rating and raised its target price to $195 from $175. The consensus target is $192.65. The stock closed on Thursday at $193.22.
Bilibili Inc. (NASDAQ: BILI): J.P. Morgan downgraded the shares from Overweight to Underweight with a $13 target price. The consensus target is up at $22.56. The stock closed almost 7% lower on Thursday at $16.20 after the downgrade.
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