The futures traded higher, as we hit the middle of the trading week. All the major indexes finished Tuesday solidly higher. While the Israel-Hamas war continues to raise geopolitical concerns, the focus across Wall Street remains on the upcoming third-quarter earnings. Another fly in the ointment is the September inflation numbers, which are due Thursday. A spike higher could rattle markets that are already walking on eggshells.

Treasury yields plunged on Tuesday as investors sought safe haven in the sovereign U.S. debt. The bank holiday on Monday and the events in the Middle East have increased the urgency for many buyers looking to add positions. The 10-year note ended Tuesday at 4.66%, while the two-year paper closed at 4.96%. History and most analysts agree that the year-long inversion still signals recession in 2024.

Brent and West Texas Intermediate crude finished the day lower. This came after a big move on Monday on the continued concerns in the Middle East. Brent closed on Tuesday at $87.58, while WTI was last seen at $85.80. Natural gas closed the day at $3.39, up 0.53%.

Gold saw some additional follow-through buying on Tuesday. A combination of the war in Israel and a steep sell-off in the bullion over the past few months has created solid entry points for buyers. The December contract closed at $1,874.10, up 0.53%. Bitcoin continued its downward spiral, closing the day down 0.76% at $27,387.70.

The Analyst Upgrades and Downgrades

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 Wednesday, October 11, 2023.

Acadia Pharmaceuticals Inc. (NASDAQ: ACAD): As J.P. Morgan upgraded the stock to Overweight from Neutral, its $29 target price rose to $32. The consensus target is $31.07. Tuesday’s close at $23.42 was up over 7% for the day due to the upgrade.

Amazon.com Inc. (NASDAQ: AMZN): Zacks has selected this as its Bull of the Day stock, with the analyst pointing out that it has helped lead this year’s market surge. Shares last closed at $129.48, and the $170.48 consensus price target would be a 52-week high.

Arm Holdings PLC (NASDAQ: ARM): Daiwa Securities initiated coverage with a Buy rating and a $63 price objective. A consensus target is not yet available. The shares closed almost 3% higher on Tuesday at $55.71.

AutoZone Inc. (NYSE: AZO): TD Cowen initiated coverage with an Outperform rating and a $2,975 target price. The consensus target is $2,848.75. Tuesday’s close was at $2577.58.

Beazer Homes USA Inc. (NYSE: BZH): Wedbush upgraded the shares to Outperform from Neutral and has a $32 target price. The consensus target is $35.33. The stock closed on Tuesday at $24.17.

Corning Inc. (NYSE: GLW): J.P. Morgan cut its Overweight rating to Neutral and its $43 price target to $36. The consensus target is $32.38 for now. The shares ended Tuesday trading at $29.25.

Dollar General Corp. (NYSE: DG): Exane BNP Paribas initiated coverage with a Neutral rating and a $116 target. The consensus target is up at $146.50. Shares closed over 3% higher on Tuesday at $105.36.

Electronic Arts Inc. (NASDAQ: EA): BofA Securities upgraded the stock to Buy from Neutral. Its $145 target price increased to $150, well above the consensus target of $144.44. Tuesday’s $128.08 close was up 3% on the day.

Estee Lauder Companies Inc. (NYSE: EL): Its Bear of the Day stock faces selling pressure due to its underperformance, says Zacks. Shares have traded as high as $283.62 in the past year but closed most recently at $140.67.
Exact Sciences Corp. (NASDAQ: EXAS): Piper Sandler upgraded the stock to Overweight from Neutral. The firm’s $90 target price is less than the consensus target of $109.00. Tuesday’s close was at $66.10.

Juniper Networks Inc. (NASDAQ: JNPR): J.P. Morgan’s downgrade to Neutral from Overweight included a price target trim to $29 from $32. The consensus target is $32.38 for now. The shares ended Tuesday trading at $26.47.

MongoDB Inc. (NYSE: MDB): Scotiabank initiated coverage with a Sector Perform rating and a $335 target price. That compares with the $436 consensus target and Tuesday’s closing print of $358.47.

Next Era Energy Partners L.P. (NYSE: NEP): When UBS downgraded the stock to Neutral from Buy, its $74 target price plunged to $20. The consensus target is $50.13 for now. Tuesday’s close at $22.03, up over 7% for the day, after a dreadful Monday when shares declined almost 9% after another firm’s downgrade.

Omega Health Investors Inc. (NYSE: OHI): BofA Securities upgraded the stock to Buy from Neutral. Its $36 target price compares with a consensus target of $33.46 and Tuesday’s $33.78 closing share price.

O’Reilly Automotive Inc. (NASDAQ: ORLY): TD Cowen initiated coverage with an Outperform rating and a $1,100 target price. The consensus target is $1,022.71. Tuesday’s final trade was for $918.13 a share.

Popular Inc. (NASDAQ: BPOP): BofA Securities started coverage with a Neutral rating and a $63 target. The consensus target is $78.17. The shares closed on Tuesday at $64.48.

Qorvo Inc. (NASDAQ: QRVO): J.P. Morgan downgraded the stock to Sell from Neutral and slashed the price target to $78 from $116. The consensus target is $114.38 for now. The shares ended Tuesday at $93.26.

Realty Income Corp. (NYSE: O): BofA Securities downgraded the shares to Neutral from Buy and lowered its $67 target price to $52. The consensus target is $67.43. Tuesday’s close was at $50.20.

Rivian Automotive Inc. (NYSE: RIVN): Though UBS upgraded the shares to Buy from Neutral, it also trimmed the target price to $24 from $26. The consensus target is $29.30, and Tuesday’s final trade of $19.64 was a 5% gain for the day, following the upgrade.

Sabra Healthcare REIT Inc. (NASDAQ: SBRA): BofA Securities upgraded the stock to Buy from Neutral, and its $29 target price increased to $32. The consensus target is just $14.04. The stock closed on Tuesday at $14.22.

Starwood Property Trust Inc. (NYSE: STWD): Keefe Bruyette lowered its Outperform rating to Market Perform and its $21 target price to $20. The consensus target is $22.07. Tuesday’s close was at $18.97.

Sun Communities Inc. (NYSE: SUI): Compass Point initiated coverage with a Neutral rating and a $125 target. The consensus target is higher at $146.08. The close on Tuesday was at $113.39.

And More

Six high-yielding S&P 500 stocks make sense for investors concerned about what could be a difficult end to 2023 as the economy sputters and rates stay high.

Tuesday’s top analyst upgrades and downgrades included Airbnb, Amgen, Aramark, Arm, Datadog, Delta Air Lines, Match, Oracle, Patterson-UTI Energy, PayPal, Spotify Technology, Unity Software and Zscaler.

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