The futures traded higher after a big Friday rally that saw all the major indexes finish the day higher, snapping a four-day losing streak. Solid earnings from Apple and a strong nonfarm payrolls report for April got the party started, and a drop in the unemployment rate kept the risk-on crowd firmly in command until the closing bell.
With almost 85% of the S&P 500 having reported, and earnings growth for the balance of 2023 looking somewhat better, any hopes for a pause in the rate increases, or a cut in rates (which some say the Fed swaps market points to), seems unlikely now. In addition, the odds for a final 25-basis-point increase in June have increased.
On Friday, Treasury yields soared across the curve on the strong employment report, with the shorter maturities seeing the bulk of the selling. The reversal of the regional banks, which were crushed last week, was also cited as a sell signal for bond traders. The 10-year note closed at 3.45%, while the two-year yield jumped a stunning 19 basis points and finished the day at 3.92%.
Brent and West Texas Intermediate crude both had a big Friday, which some in the energy complex chalked up to short covering and the strength in the jobs numbers. WTI led the way, closing up over 4% at $71.41. Some analysts and traders also pointed to rumors that Russia was cutting oil production. While the rally was encouraging, oil was still down sharply last week. Natural gas also had a solid Friday, closing up almost 1% at $2.12.
Gold was the loser Friday, closing down 1.5% at $2025 after posting big gains last week that had it closing in on all-time highs. Bitcoin was also a big-time winner, closing over 2% higher at $29,449.
24/7 Wall St. reviews dozens of analyst research reports each day of the week 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 Monday, May 8, 2023.
Alnylam Pharmaceutical Inc. (NASDAQ: ALNY): BMO Capital Markets upgraded the shares to Overweight from Neutral and lifted its $200 target price to $250. The consensus target is $248.50. The stock closed over 3% higher on Friday at $212.05.
Apple Inc. (NASDAQ: AAPL): Needham reiterated a Buy rating and lifted its $170 target price to $195. BofA Securities maintained a Neutral rating and bumped its target price to $176 from $173. Morgan Stanley stayed with an Overweight rating, and its $180 target price is now $185. The consensus target is $171.29. Friday’s $173.57 close was up almost 5% on the day after the company posted solid results, led by big iPhone sales.
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Atlassian Corp. (NASDAQ: TEAM): Goldman Sachs downgraded the stock to Neutral from Buy and slashed the $240 target price to $165. The consensus target is $200.52 for now. The stock was hammered Friday, closing down almost 10% at $135.73, as solid quarterly numbers were offset by discouraging guidance.
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