Blue Chip Sell-Off Stocks Highlight Thursday’s Top Wall Street Upgrades and Downgrades

By Lee Jackson Published Dec 21, 10:10AM EST

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Blue Chip Sell-Off Stocks Highlight Thursday’s Top Wall Street Upgrades and Downgrades — © Exterior - Chipotle Mexican Gr... (CC BY 2.0) by Aranami

The futures traded up nicely, with time running short across Wall Street before the arrival of the Christmas holiday next Monday. The nine-day buying party across Wall Street ended Wednesday as all major indices finished the trading day lower. The Nasdaq was the big loser, falling 1.5% to 14,777.94.

Federal Reserve officials’ pushback on impending rate cuts as early as March remains the most significant headwind for stocks, especially after the massive 13%+ rally since late October. Profit taking on that rally was also cited for the sell-off.

Treasury yields were lower across the board, as buyers returned in a big way Wednesday. Analysts cited end-of-the-year buying, amid expectations for those hoping for rate cuts in 2024. While they likely do come about, it could be July before the Fed actually lowers the funds rate.

The 10-year note, printed at the 5% level on October 18, closed at 3.86%. The shorter two-year paper closed at 4.36%, after hitting 5.22% that same day.

Brent and West Texas Intermediate crude both closed modestly lower, after two solid days of gains after the Yemen Houthi militants attacked shipping transports in the Red Sea. With multiple countries stepping up to protect the region, that attack may die down some. Brent was last seen at $79.17, and WTI closed at $73.78. Natural gas finished down over 3% at $2.41.

Gold followed the selling trend as well, closing slightly lower on Wednesday. The February contract finished down just 0.27% at $2,046.50. Likely profit-taking was also cited for the slight loss on the day. Bitcoin was a big winner, closing up 3.27% at $43,468.10. Many analysts feel the crypto could return to the $50,000 level by early January.

Here are the top Wall Street upgrades and downgrades for Thursday, December 21, 2023.

Upgrades

Good news for investors.

Amgen Inc. (NASDAQ: AMGN | AMGN Price Prediction) from Neutral to Buy at Daiwa Securities; price target raised from $264 to $320.

Salesforce Inc. (NYSE: CRM) from Equal-Weight to Overweight at Morgan Stanley; price target raised from $290 to $350.

Spotify Technology S.A. (NYSE: SPOT) from Hold to Buy at Pivotal Research Group; price target raised from $170 to $265.

Downgrades

Not-so-good news for investors.

Chipotle Mexican Grill Inc. (NYSE: CMG) from Outperform to Neutral at Wedbush with a price target of $2,400.

Eli Lilly and Co. (NYSE: LLY) from Buy to Outperform at Daiwa Securities; price target reduced from $660 to $610.

Zoom Video Communications Inc. (NASDAQ: ZM) from Equal Weight to Underweight at Wells Fargo with a price target of $70.

Other

Searching for investment winners.

J.Jill Inc. (NYSE: JILL) initiated with an Outperform rating at William Blair; no price target given.

Rollins Inc. (NYSE: ROL) initiated with an Equal-Weight rating and a price target of $42 at Morgan Stanley.

Snap Inc. (NYSE: SNAP) resumed at Raymond James with an Outperform rating and price target of $20.

See which five dividend stocks could deliver life-changing returns.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.