The second trading day of the 2024 trading year was another swing and a miss, as all the major indices finished the day lower. The Nasdaq, which saw a massive 44% gain in 2023, was the big loser, again, dropping 1.18% to end the day at 14,592.21. The S&P 500, which had been on a nine-week winning streak, the longest in years, will see that likely come to an end as the venerable index closed at 4,704.81, down 0.80%. Wall Street pundits cited profit-taking in the new year and a very overbought market that is likely luring in short-sellers.

Bonds

Treasury yields were modestly lower across the curve Wednesday after spiking higher on the first trading day of the year and bringing some buyers in. The Federal Reserve minutes from December were released, and while acknowledging that rate cuts may be on the way in 2024, there is a reasonably high level of uncertainty over how, and perhaps even if, they will happen this year. The 10-year note closed at 3.91%, while the two-year paper was last seen at 4.33%.

Commodities

Brent and West Texas Intermediate crude soared on Wednesday for the most significant gains since November. Youthi militants continued to target container ships and, after disruptions due to protests at Libya’s top oilfield, shut down production. Many across the energy complex feel the rising conflict in the Middle East could be poised to spread.

Brent closed up 3.36% at $78.44, while WTI was last seen at $72.97, higher by 3.68%. Natural gas also increased significantly, closing the session at $2.69, a big 4.7% gain as a big winter storm closes in on parts of the country.

Gold closed the day lower, and many feel this is likely profit-taking after the solid move higher for the bullion over the fourth quarter. With geopolitical issues like two wars still on the front burner, the bid for gold likely stays intact. The February contract finished the session at $2,049.50. Bitcoin closed down a whopping 4.6% to finish at $42,886.70. Some rumblings that the cryptocurrency exchange-traded fund was not being approved after all made the rounds Wednesday.

Here are the top Wall Street upgrades and downgrades for Thursday, January 4, 2024

Upgrades

American Express Inc. (NYSE: AXP)from Neutral to Overweight and the price target increased from $167 to $205 at J.P. Morgan.

General Motors Co. (NYSE: GM) from Peer Perform to Outperform with a price target of $42 at Wolfe Research.

Home Depot Inc. (NYSE: HD) from Equal Weight to Overweight at Barclays, which also increased its $325 price target to $372.

Micron Technology Inc. (NASDAQ: MU) from Neutral to Overweight with the price target increased from $70 to $95 at Piper Sandler.

Downgrades

Analog Devices Inc. (NASDAQ: ADI) from Outperform to Market Perform with a price target of $200 at Bernstein.

Apple Inc. (NASDAQ: AAPL) from Overweight to Neutral, and the $220 price target cut to $205,  at Piper Sandler. (These seven stocks could join the trillion dollar club.)

Pfizer Inc. (NYSE: PFE) from Outperform to Market Perform with a price target of $32 at TD Cowen.

Snowflake Inc. (NYSE: SNOW) from Neutral to Sell with a price target of $160 at Monness Crespi & Hardt.

Other Calls

Charles Schwab Corp. (NYSE: SCHW) initiated with a Market Perform rating and a price target of $77 at T.D. Cowen.

Equifax Inc. (NYSE: EFX) reiterated with a Buy rating and added to the Conviction List at Needham; which also raised its price target from $230 to $305.

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