The futures were trading higher after a slow Monday that saw all the major indexes close just slightly positive. With the inflation data out of the way, all eyes will turn to the Federal Reserve meeting and announcement on Wednesday on its next interest rate move. Most across Wall Street expect the Fed will hold federal funds at the current level of 5.25% to 5.50% as the increase in the headline inflation numbers was mostly from surging energy prices. The “higher for longer” mantra likely will remain in place, and any sort of rate cut may not be forthcoming until late next year.
Treasury yields were mostly higher across the board on Monday, with the only buying coming in the longest maturities. While bond traders also anticipate no move by the Fed, many feel that the economy could be weaker than the recent incoming data on retail sales would indicate. Staggering credit card debt and rising concerns over the potential for a hard landing are keeping the sellers in place. The 10-year note closed at 4.32%, while the two-year paper finished the session at 5.06%.
Brent and West Texas Intermediate crude continued to climb higher on Monday, as expectations for tighter supplies in the fall and the potential for more stimulus in China continued to be a tailwind for the two benchmarks. Brent closed up 0.69% at $94.58, while WTI was last seen up 1.4% at $92.02. Natural gas had a solid start to the week as well, closing up 3.14% at $2.73.
Gold, which has been trapped in a tight trading range for the past month, started off the week modestly higher. The December contract finished the session at $1,953, up 0.36%. Precious metal traders also have a keen interest in the Fed decision. Bitcoin, which has been bludgeoned over the past month, bounced back on Monday, closing up 1.1% at $26,823.
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 analyst upgrades, downgrades and initiations seen on Tuesday, September 19, 2023.
Adobe Inc. (NASDAQ: ADBE): Goldman Sachs reiterated a Buy rating and lifted its $550 target price to $625. The consensus target is $566.59, and shares closed on Monday at $532.42.
Annaly Capital Management Inc. (NYSE: NLY): UBS raised its Neutral rating to Buy and its $21 target price to $24. The consensus target is $21.56. Monday’s final trade was $20.66 a share.
BioCryst Pharmaceuticals Inc. (NASDAQ: BCRX): As RBC Capital Markets lifted its Sector Perform to Outperform, its $9 price target bumped up to $10. The consensus target is $15.10. The stock closed almost 10% higher on Monday at $7.53 after the upgrade and a favorable reimbursement recommendation.
Carvana Co. (NASDAQ: CVNA): Wedbush upgraded the stock to Neutral from Underperform. It also bumped its $40 target price to $48, above the consensus target of $42.18. On Monday, shares closed at $51.95.
DoorDash Inc. (NYSE: DASH): The Neutral rating at Mizuho was lifted to Buy, and the firm’s $90 target price rose to $105. The consensus target is $94.30. Monday’s close was at $80.92.
Frontier Group Holdings Inc. (NASDAQ: ULCC): Evercore ISI’s downgrade was from Outperform to In Line with a $7 target price. The $12.11 consensus target is higher, but Monday’s last trade was for $5.15 a share.
Iridium Communications Inc. (NASDAQ: IRDM): Deutsche Bank upgraded the stock to Buy from Hold and has a $57 target price. The consensus target is up at $67.20. Monday’s close was at $50.17.
Jack Henry & Associates Inc. (NASDAQ: JKHY): Northcoast upgraded the stock to Buy from Neutral. Its $185 price objective compares with a consensus target of $169.54 and the most recent close at $155.19.
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