In this news article, JPMorgan retail analyst Matt Boss warns that lower to middle-class consumers are facing difficult challenges. The backdrop is worsening, as mortgage rates and credit card debt are increasing, while wages are not keeping pace. Additionally, there has been a decrease in apparel trade, the unemployment rate is at an 18-month high, and personal savings rates are below 2019 levels. These consumers are burdened with essential expenses and are also resuming student loan payments.
There is mounting uncertainty in the commercial real estate sector, which is causing concern for banks. However, there are some tailwinds that could help safeguard the bottom lines of Wells Fargo and Morgan Stanley. JPMorgan has also lowered its price target on Netflix but maintains a buy rating ahead of the company’s quarterly earnings release next month. Trade Desk, an online advertising tech company, has started with a buy rating and a price target at UBS, as analysts are optimistic that companies will shift their ad spending to streaming.
Workday, on the other hand, has experienced a drop in share prices after its Investor Day. The company’s details revealed a weakened outlook, with a revised annual subscription revenue growth target that is lower than its previous long-term goal. Bank of America has also lowered its price target on Advance Auto Parts, citing some risk in the new CEO’s turnaround plans. Other price target adjustments include Diageo, Walgreens Boots Alliance, Paychex, Take-Two Interactive, and United Parcel Service.