The futures traded lower on Wednesday, after another risk-off day across Wall Street in which all the major indexes posted big losses. The Nasdaq led the way with a 2% retreat. Despite some reasonably good economic data recently, like from the ISM on Monday and last week’s bigger-than-expected jump in nonfarm payroll additions, the sellers ruled the day again.

The continued economic strength has some across Wall Street concerned that the terminal or final federal funds rate could end up higher than the expected 5.00% to 5.25% and that rate may be in place longer than now anticipated. With earnings also expected to be lower, that may lead to more selling.

Interest rates across the Treasury curve initially roared higher again on Tuesday, before reversing late morning. The continued weakness in the equity market could once again be pushing portfolio managers back to the safe haven of government bonds. The two-year and 10-year note inversion spread remained at 40-year highs, with the 10-year closing at 3.51% and the short paper at 4.37%.

Consumers looking to travel for the holiday will continue to cheer lower oil prices, as Brent and West Texas Intermediate crude both finished the day lower after the EU embargo on imports of Russian crude oil by sea came into effect Monday. The EU announced last June it would ban Russian seaborne crude oil imports starting on December 5 and refined oil products from February 5 as part of its sixth sanctions package against Russia. Natural gas also ended the day lower, while both gold and Bitcoin closed higher Tuesday.

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, December 7, 2022.

Aerovate Therapeutics Inc. (NASDAQ: AVTE): BTIG Research upgraded the shares to Buy from Neutral and has a $27 target price. The consensus target is $26.33. The last trade on Tuesday was reported at $18.03.

Array Technologies Inc. (NASDAQ: ARRY): Wells Fargo started coverage with an Overweight rating and a $28 target price. The consensus target is $27.08 for now. The stock closed almost 7% lower on Tuesday at $20.40.

Boston Beer Co. Inc. (NYSE: SAM): Deutsche Bank downgraded the stock to Sell from Hold, and its $315 target price ticked up to $316. The consensus target is $331.11. The shares closed at $359.92 on Tuesday, which was down over 5% on the day.

Conagra Brands Inc. (NYSE: CAG): Deutsche Bank cut its Hold rating to Sell but nudged its $33 price target up to $34. The consensus target is $37.25. The stock closed on Tuesday at $37.56.
Costco Wholesale Corp. (NASDAQ: COST): Bernstein initiated coverage with an Outperform rating and a $586 target price. The consensus target is $562.52. The stock closed on Tuesday at $481.16.

Edwards Lifesciences Corp. (NYSE: EW): Stifel’s downgrade was to Hold from Buy, and it lowered its $95 target price to $75. The consensus target is $93.14. Tuesday’s closing print was $72.27.

Estee Lauder Companies Inc. (NYSE: EL): Deutsche Bank’s upgrade to Buy from Hold included a target price hike to $266 from $209. The consensus target is $240.44. The stock closed on Tuesday at $237.05.

General Electric Co. (NYSE: GE): Oppenheimer upgraded the blue-chip giant to Outperform from Perform and has a $104 target price. The consensus target is lower at $86.12. The stock ended Tuesday trading at $85.28.

General Mills Inc. (NYSE: GIS): Deutsche Bank’s downgrade was from Buy to Hold with an $88 target. The consensus target is $78.61. The stock closed Tuesday at $85.38, so this looks like a straight valuation call, as it is trading just below a 52-week high.

Hanesbrands Inc. (NYSE: HBI): The Zacks Bear of the Day stock has a P/E of just 6.5, points out the analyst. Shares of this apparel maker have traded as high as $17.81 in the past year but closed most recently at $6.33. That is down almost 25% in the past 90 days.

JPMorgan Chase & Co. (NYSE: JPM): Morgan Stanley upgraded the financial giant to Overweight from Underweight while boosting its $126 price target to $153. The $139.89 consensus target is now closer to Tuesday’s close at $131.59.

Kimberly-Clark Corp. (NYSE: KMB): Deutsche Bank downgraded the consumer staples giant to Sell from Hold. It also lifted its $120 target to $123. The consensus target is $125.62. The stock closed on Tuesday at $136.01.

Lumen Technologies Inc. (NYSE: LUMN): Goldman Sachs resumed coverage with a Neutral rating and a $6 target The consensus target is $6.80. Tuesday’s closing share price of $5.40 was up close to 4% for the day.

Molson Coors Beverage Co. (NYSE: TAP): Deutsche Bank’s Hold rating dropped to Sell. Its $50 target price is less than the $53.76 consensus target. The last trade for Tuesday came in at $53.26.

NMI Holdings Inc. (NASDAQ: NMIH): BTIG Research’s downgrade was from Buy to Neutral with a $24 target price. The consensus target is $26.78. The stock closed on Tuesday at $19.53.

PennyMac Financial Services Inc. (NYSE: PFSI): Wells Fargo raised its Equal Weight rating to Overweight, and its $54 target price jumped to $75. The consensus target is $65.25. The last trade on Tuesday was recorded at $58.59.
PerkinElmer Inc. (NYSE: PKI): Though Cowen upgraded the stock to Outperform from Market Perform, it also slashed its $192 price target to $164. The consensus target is $157.54. The shares closed on Tuesday at $137.29.

Reinsurance Group of America Inc. (NYSE: RGA): RBC Capital Markets upgraded the stock to Outperform from Sector Perform and lifted its $145 target price to $170. The consensus target is $148.67. Tuesday’s $146.06 close was up almost 5% on the day.

Royal Caribbean Cruise Ltd. (NYSE: RCL): J.P. Morgan’s downgraded was from Overweight to Underweight. It also chopped the $106 target price in half to $47, while the consensus figure is $65.50. The last trade on Tuesday came in at $57.63.

RXO Inc. (NYSE: RXO): Jefferies initiated coverage with a Buy rating and a $25 target price. The consensus target is $22. Tuesday’s close was at $18.12.

Schlumberger Ltd. (NYSE: SLB): Citing rising earnings, Zacks named this oilfield services giant as its Bull of the Day stock. The shares last closed at $50.88, and the $59.07 consensus target price would be a multiyear high.

SL Green Realty Corp. (NYSE: SLG): The BMO Capital Markets downgrade to Market Perform from Outperform included a target price trim to $41 from $47. The consensus target is $48.47. Tuesday’s closing share price of $35.56 was down close to 7% on the day, along with the bad tape.

State Street Corp. (NYSE: STT): Morgan Stanley downgraded the stock from Overweight to Equal Weight with an $86 target. The consensus target is $82.71. On Tuesday, the closing share price was $74.36.

United Airlines Holdings Inc. (NASDAQ: UAL): Argus raised its Hold rating on the legacy carrier to Buy with a $52 target price. The consensus target is $52.68. Tuesday’s close was at $45.92.

Walmart Inc. (NYSE: WMT): Bernstein started coverage with a Market Perform rating and a $159 target price. The consensus target is $160.67, and the stock closed on Tuesday at $149.86.

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Tuesday’s top analyst upgrades and downgrades included CrowdStrike, Diamondback Energy, DoorDash, Etsy, JetBlue Airways, Lululemon Athletica, Marriott International and Silvergate Capital.

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