The futures were higher after the expected increase in the federal funds rate of 25 basis points took the current level to 5.00% to 5.25%, the highest in 17 years. The major indexes closed lower, with the exception of the small-cap Russell 2000. While Federal Reserve Chair Powell gave some indication in his remarks that the Fed may be done hiking rates for this cycle, it is a solid bet that one more rate hike could still come in June if the data continues to remain hot, which he also alluded to. The coming jobs numbers for April could be a leading indicator, especially after the ADP job numbers came in higher than expected on Wednesday.

Treasury yields were lower across the curve, as worried buyers continued to buy any and all maturities. Ongoing concerns over the banking industry and the pending debt ceiling emergency have made the safe-haven government bond trade popular in a big way. The yield on the benchmark 10-year note closed at 3.40%, the lowest since early April. The short two-year paper finished the day at 3.83%. While tightening dramatically this week, the ongoing inversion signals recession is on the way.

Brent and West Texas Intermediate crude closed lower again Wednesday, both down over 4%, after being hammered to the tune of 5.5% on Tuesday. Concerns over China’s growth and the potential for an economic slowdown in the United States have weighed on pricing across the energy complex. Iran seized another oil tanker Wednesday, for the second time in a week, and that tail risk put some support under the major benchmarks. Natural gas closed down over 3% at $2.16.

Gold remained the big winner, as the commodity continued to race toward the all-time high of $2,075 that was hit back in August of 2020 when the COVID-19 pandemic started to really pick up speed. The bullion finished Wednesday at $2,030. Bitcoin closed down on the day at $28,532.

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 Thursday, May 4, 2023.

Advanced Micro Devices Inc. (NASDAQ: AMD): Craig Hallum upgraded the chip leader to Hold from Buy, and it raised its $76 target price to $100. The consensus target is $90.32. The stock closed down over 9% on Wednesday at $81.62 after posting solid results, though chip sales crashed 64%.

Amcor PLC (NYSE: AMCR): Though J.P. Morgan upgraded the stock to Overweight from Neutral, it trimmed its target price to $10.80 from $11.60. The consensus target is $11.86 for now. Wednesday’s $10.01 close was down over 8% on the day after reporting inline earnings results.

Caesars Entertainment Inc. (NASDAQ: CZR): Stifel reiterated a Buy rating. Its $68 target price is less than the $69.08 consensus target. Wednesday’s closing share price was $44.02.
CarMax Inc. (NYSE: KMX): Oppenheimer reiterated an Outperform rating. Its $85 target price is well above the $69.29 consensus target and Wednesday’s close at $70.67.

Chewy Inc. (NYSE: CHWY): Raymond James upgraded the shares to Outperform from Market Perform. Its $36 target price is less than the $45.31 consensus target. The stock closed on Wednesday at $32.05, which was up over 3% for the day after the upgrade.

CNA Financial Corp. (NYSE: CNA): When BofA Securities upgraded the stock to Neutral from Underperform, it bumped its $40 target price to $41. The consensus target is $46. The shares ended Wednesday’s session at $40.01.

Cogent Communications Holdings Inc. (NASDAQ: CCOI): BofA Securities upgraded the stock to Buy from Neutral, and its $45 target price jumped all the way to $85. The consensus target is just $64.90, but shares ended Wednesday at $73.58. That was up 8% on the day after the upgrade.

Grand Canyon Education Inc. (NASDAQ: LOPE): Barrington Research reiterated an Outperform rating but lifted its $130 target price to $140. The consensus target is $127.50. The shares closed on Wednesday at $115.28.

Incyte Corp. (NASDAQ: INCY): Oppenheimer trimmed its $95 target price on the Outperform-rated stock to $92. That is still well above the $86.12 consensus target and Wednesday’s final print of $68.04.

Marriott International Inc. (NASDAQ: MAR): Bernstein upgraded the shares to Outperform from Market Perform. Its $204 target price compares with a consensus target of $183.47 and Wednesday’s close at $178.45.

Microsoft Corp. (NASDAQ: MSFT): Oppenheimer maintained an Outperform rating with a $330 target price. The consensus target is $328.71, and the stock closed at $304.40 on Wednesday.

Molson Coors Beverage Co. (NYSE: TAP): J.P. Morgan’s upgrade to Neutral from Underweight included a target price hike to $64 from $59. The consensus target is $55.56. The stock closed on Wednesday at $64.96.

NerdWallet Inc. (NASDAQ: NRDS): Citigroup lowered its Buy rating to Neutral and trimmed its $15 price target to $14. The consensus target is $22.50 for now. The stock closed on Wednesday at $9.70, down almost 23% for the day, as a warning of potential headwinds to come later this year overshadowed strong quarterly results.

NXP Semiconductors N.V. (NASDAQ: NXPI): Truist Financial reiterated a Buy rating and raised its $210 target price to $217. The consensus target is $195.60. The final trade on Wednesday was for $167.56 a share.

Otter Tail Corp. (NASDAQ: OTTR): Siebert Williams Shank downgraded the shares from Hold to Sell with a $68 target price. The consensus target is $67.67. Wednesday’s close was at $76.79.

Premier Inc. (NASDAQ: PINC): As Baird downgraded the stock to Neutral from Outperform, its target price fell to $30 from $43. The consensus target is $35.80. The stock closed on Wednesday at $27.16.
Prosperity Bancshares Inc. (NYSE: PB): Wolfe Research upgraded the stock to Outperform from Underperform. Its $68 target price is shy of the $68.43 consensus target. Wednesday’s close was at $59.68.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN): Truist Financial reiterated a Buy rating and lifted its $856 price target all the way to $1,050. The consensus target is $887.70, and shares closed on Wednesday at $803.17.

Restaurant Brands International Inc. (NYSE: QSR): Stifel raised its $65 target price on the Hold-rated stock to $72. The consensus target is $72. The last trade on Wednesday was at $71.77.

Thomson Reuters Inc. (NYSE: TRI): Canaccord Genuity’s downgrade was to Hold from Buy, though the analyst raised the target price to $131 from $124. That compares with a $128.18 consensus target. Wednesday’s $124.69 final print was down close to 5% for the day despite and earnings beat earlier this week.

Tri Pointe Homes Inc. (NYSE: TPH): Pondering whether the worst over for the homebuilders, Zacks selected this one as its Bull of the Day stock. Shares last closed at $28.73, and the $31.33 consensus price target would be an all-time high.

Uber Technologies Inc. (NYSE: UBER): Susquehanna lifted its Neutral rating to Positive and its $40 target price to $48. The consensus target is $47.61. Wednesday’s $37.82 close was up over 3% for the day after solid quarterly results were posted.

Weatherford International PLC (NASDAQ: WFRD): Raymond James initiated coverage with a Strong Buy rating and a $100 target price. The consensus target is just $88. Wednesday’s final trade was for $59.03 a share.

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Wednesday’s top analyst upgrades and downgrades included Annaly Capital Management, Capri, Chegg, Coinbase Global, CrowdStrike, Dell Technologies, Fortinet, HP, Kohl’s, Palo Alto Networks, Penn Entertainment, Shoals Technologies, SoFi Technologies and ZScaler.

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