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Stock Downgrades: K12 Inc., Ralph Lauren, Pacific Sunwear
The glass ceiling, set to be spectacularly
shattered by Janet Yellen
, will dominate the day, but Wall Street remains more fixated by
the debt ceiling. Amid an increasingly dire situation in DC, the
S&P 500 Index
(INDEXSP:.INX) endured its steepest two-session slide since a late
June swoon. Amid stocks on the move,
Golden State juice stock
) imploded 18.78%. After such a showing, you'd think it would be
pure pulp fiction if someone said
) would swiftly enter the
SoCal smoothie business
, but you'd be wrong. Will it be a case of AprÃ¨s moi, le dÃ©luge
for the coffee king? Well, as Albert Hammond informed us all those
years ago, "It never rains in Southern California.
Man, it pours
." At least on
Pacific Sunwear of California
), which tumbled 2.33% in last night's after-hours action and today
incurs a rating reduction.
This afternoon at 2:00 p.m. Eastern, we will get meeting minutes to the Fed's much-debated September 17-18 policy confab, at which it unexpectedly opted to keep the monetary spigot intact. In corporate earnings action, Costco ( COST ), Del Frisco's Restaurant Group ( DFRG ), Family Dollar (FDO), and Fastenal (FAST) are all due to release results.
C&J Energy (CJES): Shares are cut to Market Perform from Outperform at Cowen amid a large level of oversupply. Its price objective is also trimmed, by $2.70 to $22.30.
Green Dot (GDOT): GDOT gets downgraded to Neutral from Overweight at Piper Jaffray, which takes its target price to $26 from $28.
Hess Corp. (HES): Citigroup reduces the energy outfit to Neutral from Buy.
IberiaBank (IBKC): Oppenheimer downgrades IBKC to Perform from Outperform amid softness in mortgage banking.
K12 Inc. (LRN): The kindergarten-through-12th grade education outfit does indeed wear the dunce cap today. Shares are tumbling 24% as I write after the company issued disappointing earnings guidance. BMO Capital (Market Perform from Outperform) and Robert W. Baird (Neutral from Outperform, target price taken to $25 from $40) both send the stock to the principal's office.
Patterson-UTI (PTEN): Shares are cut to Market Perform from Outperform at Cowen.
Pacific Sunwear of California ( PSUN ): The stock is now Neutral from Overweight at Piper Jaffray.
Ralph Lauren Corp (RL): Troubled by softness in apparel spending, Piper Jaffray reduces RL to Neutral from Overweight.
ViroPharma (VPHM): The stock is now Neutral from Buy with a $39 price objective at Mizuho.
(See also: Stock Upgrades: Michael Kors Makes a Killing and New Stock Coverage: Ruby Tuesday Neither Day Late Nor Dollar Short . )