Shocks over the British referendum to leave the EU began to wear off Tuesday, with markets aiming higher around the world. The Standard & Poor’s 500 and Dow Jones Industrial Average were both set to open up at least 1 percent following bouncebacks in Asia and the U.K.’s FTSE 100 index.
Here are five stocks to watch Tuesday as the Brexit hangover fades.
Bank of America
Shares in the second-largest bank by assets in the U.S. swung positive before trading opened Tuesday, shrugging off steep post-Brexit declines. The company has a significant presence in the U.K., with more than 5,000 employees located there — but that’s a fraction of rival JPMorgan’s 16,000 Britain-based workers.
The British telecommunications company had a quick recovery from the Brexit blues Tuesday, rising 4.4 percent in London trading, with shares stateside picking up before the bell. Late last week HSBC analysts upgraded shares of Vodafone (VOD) to a Buy — a move quickly eclipsed by the referendum.
Like most other stocks, Micron (MU) took a beating Monday as investors reeled over Britain's decision to pull out of the European Union. But analysts have taken a sunnier view of the computer chipmaker, which has increased its projections of sales of the types of solid-state memory chips used in computers and servers. The stock was up 2.8 percent before markets opened.
The German pharmaceutical giant has received positive coverage from a number of analysts in recent weeks. Most recently, Goldman Sachs raised its target price for shares of Merck (MRK) nearly 9 percent. Merck has positioned itself for a larger share of niche cancer drug markets, analysts at BMO Capital Markets noted recently.
Travelers Companies Inc.
The insurance group rose before markets opened Tuesday after Bank of America Merrill Lynch raised the stock to a Buy, from a neutral rating. After Travelers (TRV) missed Wall Street’s expectations in its last earnings report, the company lifted its dividends and announced higher stock buybacks.