Wells Fargo lifted its S&P 500 target to 4,60, citing:
- FOMC
- seasonality
- but did warn that defensives are signalling a 'yellow flag'
Bank of America headline their note with 'Don't worry, be happy":
- raise their S&P 500 2023 year-end target to 4600
- from 4300 previously
- Citing their "US Regime Indicator" and that it improved for the second consecutive month and is now in "Recovery phase"
- "we believe Q2 2023 marked a trough in the profits cycle"
BoA also had comments on the likelihood of a US recession:
- difficult to see a US recession when the consumer is spending 4% more y/y
- The consensus would say a very small recession, pushed out
- US consumers are still spending on goods & travel
- credit-and debit-card payments are at higher levels
- the quality of consumer assets remains very strong
- "We anticipate a potential recession at some point in the future. Our own economists have really pushed that off."
