Stock Downgrades: Expedia Isn't Sailing the Ocean Blue

By Justin Sharon,

Shutterstock photo

Maybe the government should shut down more often. Dow Industrials (INDEXDJX:.DJI) gained 1.09% amid Washington gridlock to snap a two-week slump. In a coded message to Mr. Boehner , No More Tears maker Johnson & Johnson jumped 2.5%, besting the Dow (INDEXDJX:.DJI) average on Friday following a broker boost . Janet Yellen was nominated as the first Democrat to head the Fed since 1987; if you don't want to be reminded of what happened later that year, look away now . The current cover of Barron's (" Munis on the Mend" ) is enough to turn Meredith to tears, as her eponymous investment outfit reached its Whit's end . (Hopefully she's still long Wipro ( WIT ), which surged 6.99%.) And as a Pope -- Alexander, actually -- once said, " To err is human; to forgive, divine ." This as the Vatican recalled a Pope Francis medal after misspelling the name "Jesus." Indeed it was a bad time for reading, writing, and arithmetic all around, what with an unloved K12 Inc. ( LRN ) cratering 36%.

No economic data due today, and both banks and the bond market are closed for Columbus Day, but the first full week of earnings season begins with Brown & Brown ( BRO ), Dassault Systems (OTCMKTS:DASTY), J.B. Hunt Transport ( JBHT ), Packaging Corp. of America ( PKG ), and Wintrust Financial (WTFC) all expected to release results.

Avnet (AVT): Deutsche Bank downgrades the electronics outfit to Hold from Buy.

Coach (COH): COH is cut to Hold from Buy at Canaccord Genuity, which reduces its price objective to $62 from $65. Concerns include soft traffic trends and increased competition from Michael Kors (KORS).

Consolidated Water (CWCO): Shares are cut to Hold from Buy at Brean Capital due to valuation.

Covanta (CVA): Raymond James reduces its rating to Outperform from Strong Buy.

Diageo (DEO): The Guinness owner gets slashed to Sell from Hold at Investec.

Delhaize Group (DEG): Shares are lowered to Underperform from Hold at Jefferies.

Ericsson (ERIC): The stock is lower in today's European trading after being taken to Underweight from Equal Weight by Barclays.

Expedia (EXPE): Deutsche Bank takes the online travel outfit to Hold from Buy amid execution issues and executive turnover.

Hi-Crush Partners (HCLP): Shares get downgraded to Sector Perform from Outperform at RBC Capital.

Infineon (OTCMKTS:IFNNY): Bank of America-Merrill Lynch moves the stock to Neutral from Buy.

K12 Inc. ( LRN ): LRN, down sharply last week, is lowered to Underperform from Neutral at Bank of America-Merrill Lynch.

Merck (MRK): The Dow (INDEXDJX:.DJI) member is downgraded to Perform from Outperform by Sanford Bernstein.

Mylan Labs (MYL): Morgan Stanley moves the stock to Equal-Weight from Overweight.

Penn Virginia (PVR): Shares are downgraded to Hold from Buy at BB&T Capital.

Royal Bank of Scotland (RBS): The stock is now Underperform from Neutral at Bank of America-Merrill.

SABMiller (OTCMKTS:SBMRY): Citigroup slashes the brewing behemoth to Neutral from Buy.

Strategic Hotels & Resorts (BEE): Shares get downgraded to Buy from Strong Buy at ISI Group.

Waters Corporation (WAT): The stock is now Neutral from Buy at Mizuho due to uncertainty surrounding pharmaceutical end markets. Its price objective is $110.

(See also: Stock Upgrades: Liberty Interactive Is Open for Business and New Stock Coverage: On Columbus Day, It Pays to Discover .)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: BRO , JBHT , LRN , PKG , WIT

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