**Market Insights and Updates**
The S&P 500 is poised for a modest opening on Wednesday, following a record-breaking close on Tuesday. Nvidia’s strong performance contributed to the market’s upward momentum, but investors are now bracing for earnings reports from Micron and other chipmakers. Meanwhile, our trusted momentum indicator suggests that the market may be due for a correction.
**Analyst Insights**
Morgan Stanley’s Adam Jonas has downgraded his outlook on the US auto industry, citing increased competition from Chinese manufacturers and declining vehicle affordability in the US. This move comes as no surprise, given our earlier decision to sell out of Ford.
In other news, Tyson Foods has been downgraded to a sell-equivalent rating by Piper Sander, due to concerns over beef margins and rising chicken supply. Shares have been trending downward over the past month.
On a more positive note, KeyBanc has upgraded DoorDash to an overweight buy, citing the company’s ability to sustain growth and demonstrate operating leverage. The firm has also raised its price target on Uber, anticipating further earnings boosts from cost discipline.
**Stock Updates**
Wells Fargo has upgraded Baker Hughes to overweight, citing its diversified business model. However, the firm has lowered its price targets on Halliburton and SLB, reflecting a more muted macro outlook.
Baird analysts have added Foot Locker to their “Bearish Fresh Pick Trading Call” list, citing signs of softer spending trends and lower near-term sales visibility.
Hewlett Packard Enterprise has been upgraded to a buy-equivalent overweight at Barclays, driven by growing AI server revenues and improvement in storage.
Evercore ISI has downgraded Union Pacific to a hold-equivalent in line rating, citing full valuation based on its medium-term earnings outlook.
Expedia has been downgraded to hold at Cowen, due to a slower turnaround in its business-to-consumer operations.
Oppenheimer has cut its price target on Alphabet to $185 a share, citing uncertainty around the Department of Justice’s antitrust pursuits.
**Investing Insights**
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