The futures traded lower Thursday after a strong risk-on Wednesday in which all the major indexes closed higher. Many are hoping this is the beginning of this year’s Santa Claus rally, which has run into some roadblocks over the past two weeks. Positive numbers from apparel and shoe giant Nike, and some extreme cost-cutting driving gains at FedEx provided the tailwinds for the strong move higher.
Yields were flat across the Treasury curve, as analysts noted little if any effect from the widening of the band by the Bank of Japan on the country’s 10-year debt. The Treasury curve saw some steepening after a big back-up in yields earlier this week. The 10-year and two-year inversion remained in place, with the former closing at 3.68% and the latter at 4.22%. Many see the ongoing inversion as presaging a recession.
Brent and West Texas Intermediate crude continued their march higher, as both closed up almost 3%. Some on Wall Street feel that if China ever can overcome the ongoing lockdowns and disruptions from COVID-19, that oil could march to as high as $120 a barrel next year. Natural gas ended the day higher, up over 2% to $5.48. Gold and Bitcoin both finished the day modestly lower.
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 Thursday, December 22, 2022.
Bausch + Lomb Corp. (NYSE: BLCO): Barclays initiated coverage with an Equal Weight rating and a $17 target price. The consensus target is higher at $30.01. The last trade for Wednesday came in at $14.69.
BJ’s Wholesale Club Holdings Inc. (NYSE: BJ): Evercore ISI initiated coverage with an In Line rating and has a $70 target price. The consensus is higher at $82.11. The stock closed Wednesday at $66.87.
Brinker International Inc. (NYSE: EAT): Jefferies downgraded the Chili’s parent to Hold from Buy and dropped its $38 target price to $35. The consensus target is $32.88. The last trade for Wednesday was recorded at $32.81.
Carvana Co. (NYSE: CVNA): Truist Securities downgraded the stock to Hold from Buy and slashed the $50 target price to $5. The consensus target is $16.47. The stock closed on Wednesday at $4.32.
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