The futures were mixed as Wall Street returns from the three-day holiday weekend looking to end the month on a positive note with just two days left. All the major indexes closed Friday dramatically higher, with the Nasdaq once again leading the pack, up 2.27% at 12,986, for its fifth straight week of gains. Analysts noted that despite the big move higher in technology, the recent rally is the “narrowest” one since 1999, and a stunning 90% of the S&P 500 gains this year are from just 10 stocks. That is a data point many market technicians remain worried about.
Treasury yields finished mixed on Friday after a lousy week that saw rates jump higher, especially on the short end. The one-month T-bill finally caught some love Friday, as the buyers stepped in and the yield dropped 10 basis points to close at 5.60%. The debt ceiling negotiations continued over the holiday weekend, and it was reported that the two sides reached a tentative agreement with neither getting everything they wanted. The two-year note closed at 4.57%, while the 10-year note finished at 3.81%.
Brent and West Texas Intermediate crude bounced back Friday, as both finished the day up well over 1%. Top analysts cited the continued pullback in U.S. drilling, where the rig count has dropped by double digits recently and fell to 711 last week, as well as the potential for OPEC to cut production levels at its June meeting. Natural gas was down Friday to finish off a rough week, closing over 5% lower at $2.18.
Gold finished the week modestly higher, as the bullion closed at $1,945 on Friday, after hitting a nine-week low earlier in the week. Expectations for a debt ceiling settlement were the main reason for the strength on Friday. Bitcoin closed Friday up 1% after a brutal week that saw the crypto giant hit hard. J.P. Morgan remains bullish and noted that a move to the $45,000 level would not be out of the question, especially if gold reverses and continues higher, as the two tend to move in tandem.
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 Tuesday, May 30, 2023.
Atlantica Sustainable Infrastructure PLC (NASDAQ: AY): National Bank Financial downgraded the company to Sector Perform from Outperform and has a $31 target price. The consensus target is $32.73. The shares closed on Friday at $24.61.
Broadcom Inc. (NASDAQ: AVGO): Oppenheimer raised its $720 target price on the Outperform-rated shares to $800. The consensus target is just $698.30. The shares were last seen Friday above both levels at $812.73, up close to 12% after the big chip production deal and partnership with Apple.
Caterpillar Inc. (NYSE: CAT): This is the Zacks Bull of the Day stock. The analyst points out that the iconic yellow machines are seen at nearly every construction site. Shares last closed at $211.80, and the $236.58 consensus price target signals almost 12% upside potential.
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