The futures traded higher after the consumer price index numbers for April came in basically in line with expectations, with the lowest inflation print since April of 2021. All the major indexes finished Tuesday lower, as investors awaited the results, and with the CPI data out of the way, Wall Street now looks for a resolution for the debt ceiling limit. While the president and the Speaker of the House finally met on Tuesday, no agreement was reached. Senate Minority Leader McConnell said Tuesday that it is up to them to come up with a solution.
Earnings are wrapping up for the first quarter, and while most were solid, as expectations were lowered, top strategists see pricing power starting to fade and the economy weakening in the second half.
Treasury yields were flat Tuesday, as the bond market also waited for the inflation data. The benchmark 10-year note finished the day at 3.52%, while the two-year paper climbed back over the 4% level to finish at 4.03%. The inversion between the securities has been in place for over a year, starting on April 1 of 2022. The anomaly suggests that a recession is on the way.
Brent and West Texas Intermediate crude were both modestly higher after a solid move higher late last week and on Monday. Despite positive forward fundamentals, and numerous oil supply disruptions, not the least of which are the wildfires in Canada shutting in production, crude prices have been unable to break out. Natural gas also finished the day slightly higher, closing at $2.26.
Gold was also higher on Tuesday, as massive central bank purchases are said to continue around the world. Bitcoin finished the day unchanged at $27,674.
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 Wednesday, May 10, 2023.
Albemarle Corp. (NYSE: ALB): Scotiabank upgraded the stock to Sector Outperform from Sector Perform. The firm’s price target is $250, lower than the $259.40 consensus target. The stock closed on Tuesday at $195.17, which was up 5% for the day. Albemarle crushed earnings estimates last week.
Alkami Technology Inc. (NASDAQ: ALKT): J.P. Morgan initiated coverage with an Overweight rating and a $15 target price. The consensus target is up at $18.27. The stock closed on Tuesday at $12.63.
Boeing Co. (NYSE: BA): Jefferies reiterated a Buy rating for the Franchise Pick list member and has a $250 target price. The consensus target is $232.58, and shares closed on Tuesday at $201.88.
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