Equity futures traded mixed in Wednesday’s premarket session, after a big reversal day across Wall Street. Only the Nasdaq eked out a small gain on Tuesday, while the Dow Jones industrials and the S&P 500 gave back a big chunk of Monday’s winnings. The start of fourth-quarter earnings seasons, profit taking after a massive 2023, especially for the Nasdaq, and a general sense the market is woefully overbought all have contributed to the somewhat rocky start for 2024.

In addition, the possibility of Federal Reserve rate cuts in March has diminished fast, and if inflation flares at all, the hope for a cut in the summer months could also tumble. Especially after Atlanta Federal Reserve President Raphael Bostic said it was way too early to celebrate the end of inflation.

Bonds

Treasury yields were modestly lower across the curve Tuesday as bond traders keep a close eye on upcoming fourth-quarter earnings, the continuing concern over an escalation of hostilities in the Middle East, and the U.S. dollar. The 10-year note closed the session at 4.02%, while the two-year one finished at 4.37%. Some cited Jamie Dimon’s comments about the potential for a recession later in 2024 as a big surprise.

Commodities

Brent and West Texas Intermediate crude both surged higher Tuesday as a decrease in U.S. crude supplies, combined with continued concerns over the potential for an expansion of the war in the Middle East, provided a tailwind for the two. Brent finished the day up 1.71% at $77.42, while WTI was last seen at $72.24, up 2.08%. Natural gas had a huge day after a big winter storm swept the country, closing up 7.05% at $3.19.

Gold also rallied Tuesday, with the February contract closing at $2,035.90 after some profit-taking had come in to start the year. Bitcoin, which has been on a wild roller-coaster ride over the past few months, closed the day down 2.06% at $46,027.00 as the ongoing ETF for cryptocurrency remains a big issue.

Here are the top Wall Street upgrades and downgrades for Wednesday, January 10, 2024.

Upgrades

Bloom Energy Corp. (NYSE: BE) from Neutral to Outperform, with the price target raised from $16 to $22, at Robert W. Baird.

Duke Energy Inc. (NYSE: DUK) from Sector Perform to Outperform at RBC Capital Markets, which lifted its $101 price target to $113.

Exelon Corp. (NYSE: EXC) from Neutral to Buy at Mizuho. The $36 price target was lifted to $39 as well.

Home Depot Inc. (NYSE: HD) from Neutral to Outperform with a price target of $380 at Wedbush.

United Airlines Holdings Inc. (NASDAQ: UAL) from Neutral to Positive, with the price target increased from $40 to $60, at Susquehanna.

Downgrades

American Express Inc. (NYSE: AXP) from Market Perform to Underperform with a price target of $157 at BMO Capital Markets.

Apple Inc. (NASDAQ: AAPL) from Buy to Neutral with a price target of $200 at Redburn Atlantic. (Here are six reasons to avoid Apple Stock today.)

Citigroup Inc. (NYSE: C) from Outperform to Market Perform with a price target of $57 at BMO Capital Markets.

Zillow Group Inc. (NASDAQ: ZG) from Buy to Neutral at BofA Securities, but no price target was given.

Other Calls

Affirm Holdings Inc. (NASDAQ: AFRM) initiated with a Market Perform rating and a price target of $44 at BMO Capital Markets.

American Express Inc. (NYSE: AXP) initiated with a Buy rating and price target of $235 at Deutsche Bank.

eBay Inc. (NASDAQ: EBAY) coverage resumed with a Sell rating and price target of $38 at Goldman Sachs.

Revolve Group Inc. (NYSE: RVLV) initiated with a Sell rating and a price target of $12 at Goldman Sachs.

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