Futures Indices
Dow Futures: -0.10%
S&P 500 Futures: 0.00%
Nasdaq 100 Futures: -0.10%
Market Environment
US markets are moving in a scattered fashion before the opening, as everyone awaits the highly anticipated Fed monetary policy decision scheduled for this afternoon.
Investors are expecting a strong likelihood of a rate cut, with futures markets now pricing in a 90% chance of another cut.
"At their last meeting at the end of October, Chairman Powell said that a rate cut in December was 'not a given – far from it.' But since then, the September jobs report showed a new rise in the unemployment rate to 4.4%, strengthening the doves' arguments." – Jim Reid, Deutsche Bank
In the bond market, US yields are inching higher:
- US 10-year: +0.48% at 4.21%
- US 2-year: +0.25% at 3.63%
- US 30-year: +0.27% at 4.82%
Stocks to Watch
** GE Vernova (GEV): +7.50%**
Significant premarket bounce after an upgrade from BM Pekao, with a sharply higher price target.
** ResMed (RMD): +3.28%**
The stock benefits from an optimistic health sector note and renewed interest in defensive stocks ahead of the Fed's decision.
** NRG Energy (NRG): +2.25%**
Shares are supported by upgraded margin forecasts for the current fiscal year.
** Cboe Global Markets (CBOE): -3.35%**
Pullback after profit-taking, despite strong recent performance in options volumes.
** Biogen (BIIB): -3.03%**
Immediate drop after an HSBC downgrade to "reduce," with a lowered price target.
** Henry Schein (HSIC): -1.91%**
Drop tied to concerns about margins in the medical distribution sector.
Rating Changes
Upgrades
Abbvie Inc. ($ABBV) → HSBC moves to buy from hold, target raised from $225 to $265.
Blue Owl Capital Inc. ($OWL) → Raymond James upgrades to strong buy with a target of $20.
Commercial Metals Co. ($CMC) → Jefferies moves to buy, target raised from $70 to $78.
Echostar Corp. ($SATS) → Morgan Stanley upgrades to overweight, target raised from $82 to $110.
Pentair Plc ($PNR) → Jefferies moves to buy, target raised from $120 to $135.
PepsiCo Inc. ($PEP) → JP Morgan upgrades to overweight from neutral, target raised to $164 from $151.
GE Vernova ($GEV) → BM Pekao moves from sell to hold, target sharply raised from $505 to $637.
Neutral
Eli Lilly ($LLY) → HSBC maintains hold, target raised from $850 to $1070.
Exxon Mobil ($XOM) → Evercore ISI remains at outperform, target increased from $120 to $145.
Gilead Sciences ($GILD) → HSBC maintains hold, target raised from $110 to $133.
Jazz Pharmaceuticals ($JAZZ) → Piper Sandler remains at overweight, target sharply raised from $147 to $219.
Netflix ($NFLX) → CICC maintains outperform, but target lowered from $1350 to $120.
Newmont Corp. ($NEM) → RBC maintains outperform, target raised from $97 to $120.
Downgrades
Biogen Inc. ($BIIB) → HSBC downgrades to reduce from hold, target adjusted from $144 to $143.
Confluent Inc. ($CFLT) → Guggenheim downgrades to neutral from buy.
Emerson Electric Co. ($EMR) → Jefferies downgrades to hold, target set at $145.
Veralto Corp. ($VLTO) → Jefferies downgrades to hold with target reduced from $125 to $105.
Have a great session, everyone!
Sylvain Mouilhaud: Stock Coach
