The futures were trading lower as we begin August, after a very solid July for stock investors. We started the trading week where we left off, with all the major indexes higher as investors prepare for a continued deluge of second-quarter earnings reports, which so far have been reasonably strong. Typically trading volumes drop some in August as many head out for some final summer fun, and school starts across many sections of the country by the middle of the month. With Apple and Amazon set to report this week, technology traders will keep a close eye on not only the results but the forward commentary as well.
Treasury yields were flat to modestly lower Monday, as some buyers from Friday returned, especially in the longer-dated maturities. The benchmark 10-year note finished the day at a 3.97% yield, while the two-year paper closed at 4.89%. With the inversion back over 90 basis points, long-time bond market analysts still see the potential for a recession, although it may have been moved out to 2024.
Brent and West Texas Intermediate crude both closed higher again on Monday, after closing out a fifth straight week of gains on Friday. Oil finished July up over 15%, for the best month since January of 2022. The same bias remained in place as production cuts by the Saudis and OPEC, plus an increase in demand (some also have cited more traveling by car this summer as airline delays mount), have kept a solid tailwind behind the sector. Natural gas also had a solid start to the week, closing up modestly at $2.64.
Gold also traded higher on Monday, as many analysts expect the economy to weaken as the effects of the 16-month interest rate increases start to really be felt as the year moves on. The July jobs data will be watched closely on Friday. The nonfarm payroll numbers are expected to come in at 200,000. Bitcoin closed on Monday at $29,239.30.
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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 Wall Street analyst upgrades, downgrades and initiations seen on Tuesday, August 1, 2023.
Adobe Inc. (NASDAQ: ADBE | ADBE Price Prediction): Morgan Stanley lifted its Equal Weight rating to Overweight and its $510 target price to $660. The consensus target is $547.43. The shares closed over 3% higher on Monday at $546.17 after the upgrade.
Airbnb Inc. (NASDAQ: ABNB): Melius started coverage with a Neutral rating and a $160 target price. The consensus target is $122.14, and Monday’s close was at $152.19.
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Apple Inc. (NASDAQ: AAPL): Piper Sandler reiterated an Overweight rating and boosted its $180 target price to $220. The consensus target is $193.16. Monday’s final trade was for $196.45 a share. Apple is scheduled to report quarterly results on Thursday.
Capri Holdings Ltd. (NYSE: CPRI): J.P. Morgan downgraded the stock from Overweight to Neutral with a price target at $47. The consensus target is $49.91. The stock closed on Tuesday at $36.91.
Carvana Co. (NYSE: CVNA): The Jefferies downgrade was to Underperform from Hold, and its $55 target price was cut to $30. The consensus target is $42.14. The shares closed over 4% higher on Monday at $45.95.
Chevron Corp. (NYSE: CVX): Goldman Sachs upgraded the shares to Buy from Neutral. The firm’s $187 target price compares with a $185.50 consensus figure and Monday’s closing share price of $163.66.
Corsair Gaming Inc. (NASDAQ: CRSR): As Wedbush upgraded the stock to Outperform from Neutral, its $17.50 price target increased to $21. The consensus target is $18.31. The shares ended Monday at $18.48, up almost 6% for the day on the upgrade and positive commentary.
Expedia Group Inc. (NASDAQ: EXPE): Melius started coverage with a Neutral rating and a $135 target price. The consensus target is $129.39. Monday’s close was at $122.53.
GE Healthcare Technologies Inc. (NASDAQ: GEHC): BofA Securities started coverage with a Neutral rating and a $82 price objective. The consensus target is $91.17. The shares closed on Monday at $78.
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Hasbro Inc. (NYSE: HAS): BofA Securities upgraded the stock to Buy from Neutral. The analyst also boosted the $68 target price to $85, well above the consensus target of $74.89. Monday’s $64.56 close was a gain of over 4% on the day.
Intuit Inc. (NASDAQ: INTU): Zacks makes the case that the growth outlook for its Bull of the Day stock remains solid and steady. The shares hit a 52-week high of $514.14 on Monday and are up almost 12% in the past month.
Monster Beverage Corp. (NASDAQ: MNST): Stifel reiterated a Buy rating and bumped its $63 target price to $65. The consensus target is $61.76. Monday’s close was at $57.49.
NovoCure Ltd. (NASDAQ: NVCR): Evercore ISI upgraded the shares to In line from Underperform and has a $33 target price. The consensus target is up at $85.17. The stock finished Monday’s session at $32.64.
Nutrien Ltd. (NYSE: NTR): TD Securities raised its Hold rating to Buy and its target price to $83 from $72. The consensus target is $75.33. The stock closed on Monday at $68.89.
Ryder System Inc. (NYSE: R): Baird upgraded the shares to Outperform from Neutral. Its $118 target price compares with a $110.57 consensus target and Monday’s close at $102.15.
Salesforce Inc. (NYSE: CRM): Although Morgan Stanley downgraded the shares to Equal Weight from Overweight, it also raised its $251 target price to $278. The $218.41 consensus target is less than Monday’s $225.01 close.
Smart Financial Inc. (NASDAQ: SMBK): Raymond James upgraded the shares to Strong Buy from Market Perform and has a $30 target price. The consensus target is $25.83. The stock closed on Monday at $25.12.
Tencent Music Entertainment Group (NYSE: TME): Citigroup downgraded the stock to Neutral from Buy, and its $9.50 price target shrank to $7.50. The consensus target is $9.48. The stock closed on Monday at $6.99.
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Tractor Supply Co. (NASDAQ: TSCO): When Barclays downgraded the shares to Equal Weight from Overweight, it cut its $254 target price to $224. The consensus target is $248.75. The stock closed on Monday at $223.99.
Valero Energy Corp. (NYSE: VLO): Tudor Pickering Hol upgraded the refiner to Buy from Hold. Its $145 target price is higher than the consensus target of $143.21 and Monday’s close at $128.91.
Wayfair Inc. (NYSE: W): Piper Sandler’s Neutral rating rose to Overweight, and its $35 target price soared to $97. The $56.34 consensus target is well below Monday’s $77.87 close, which was up over 6% for the day on the upgrade.
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Monday’s top analyst upgrades and downgrades included ASE Technology, Block, Comcast, Copart, Digital Realty Trust, Enphase Energy, First Solar, Intel, Meta Platforms, Roku, Southwest Airlines, Snap and Trade Desk.
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