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Stock Downgrades: Expedia Isn't Sailing the Ocean Blue

By: Minyanville
Posted: 10/14/2013 9:18:00 AM
Referenced Stocks: BRO;JBHT;LRN;PKG;WIT

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 .)