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."
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