The futures were higher, after both the S&P 500 and the Nasdaq closed lower Wednesday, while the Dow Jones industrials closed higher for the 13th straight session. The last and the only time the Dow rose for 13 straight trading sessions was in January 1987, and then nine months later the market crashed on Black Monday in October of that year.
The Federal Reserve increased rates as expected by 25 basis points and again. We will be data watching between now and mid-September to see if the latest increase in the federal funds rate to 5.25% to 5.50% is indeed the last. Some across Wall Street have stated they feel the rate could go as high as 6% before the year is out. One thing is likely; the Fed’s higher-for-longer messaging to the markets is likely going nowhere anytime soon.
Treasury yields were lower across the curve as buyers replaced the sellers that had sent yields to their highest levels in a month. Only the short T-bill maturities yields crept higher. The rate increase was cited as the Fed raised rates to their highest level in 22 years. The 10-year note finished the day at 3.86%, while the two-year paper closed at 4.84%. Again, the almost 100-basis-point spread and inversion between the two signals recession, a signal that has rarely if ever been wrong.
Brent and West Texas Intermediate crude were lower Wednesday, after solid gains early in the week kept the black gold up 2% on the week. Top industry strategists continue to see strong demand, and that combined with OPEC and Saudi production cuts, as well as slowing U.S. shale production, could push prices significantly higher later this year. Natural gas closed Wednesday almost 3% lower at $2.65.
Gold finished the day higher at $1,975.50, as analysts cited the federal funds increase, in addition to U.S. new home sales that came in below expectations. J.P. Morgan in a very bullish report sees gold at a record high over the next 12 to 18 months. Bitcoin finished slightly higher at $29,395.70.
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 Thursday, July 27, 2023.
Alphabet Inc. (NASDAQ: GOOGL): Oppenheimer reiterated an Outperform rating and raised its $145 target price to $160. The consensus target is just $135.56, and Wednesday’s closing share price was $129.65.
Biogen Inc. (NASDAQ: BIIB): Oppenheimer reiterated an Outperform rating, and its $360 target price compares with a $337.64 consensus target. Wednesday’s closing print was $263.58.
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