New Stock Coverage: London Whale Still a Killer for JPMorgan

By Justin Sharon  SEP 20, 2013 9:27 AM

Wall Street ratings agencies set the tone for today's stock market.

 


In the wake of the Fed’s good ship QE sailing off into infinity, equities ended mostly underwater in a remarkably becalmed session, although Pier 1 (NYSE:PIR), Oracle’s (NYSE:ORCL) yacht-owing Larry Ellison, and the $920 million London Whale at JPMorgan (NYSE:JPM) all kept the life aquatic interesting for investors. (Wait, what’s that you say? QE is not a ship that today celebrates an important anniversary? Huh, who knew?) Despite a 13.86% plunge in Pier, and Oracle offering up a decidedly iffy earnings outlook, there were still some notable winners. Among them Destination XL (NASDAQ:DXLG), with the outfitter of “big and tall guys” advancing 2.76% after a broker boost. Alas, the market decided to simultaneously short Dr Pepper Snapple (NYSE:DPS), home of 5’2″ spokeswoman Wendy Kaufman. It ended off 0.65% on a ratings reduction.

No top-tier economic data due today — a singularly awful one in stock market history — but Olive Garden owner Darden Restaurants (NYSE:DRI) releases results. It’s also a “quadruple witching” Friday, and they rarely lack action. (This phenomenon is not to be mistaken for the quartet of Fed officials addressing audiences this afternoon, in the form of Esther George (12:30 p.m. Eastern), Daniel Tarullo (12:40 p.m.), James Bullard (12:55 p.m.), and Narayana Kocherlakota (1:45 p.m.)

Allied World Assurance (NYSE:AWH): Shares are initiated with a Perform at Keefe Bruyette, whose price objective is $103.

BancorpSouth (NYSE:BXS): Shares are a new Hold at MLV & Co.

ExOne (NASDAQ:XONE): The stock is an Outperform at FBR Capital, whose target price is $75 as it says the sand and metal market could provide a boost to the company.

Financial Information Providers: Goldman Sachs starts Sells on Dun & Bradstreet (NYSE:DNB) and FactSet (NYSE:FDS). McGraw-Hill Financial (NYSE:MHFI), Moody’s (NYSE:MCO), and Thomson Reuters (NYSE:TRI) are all new Neutrals.

International Business Machines (NYSE:IBM): Cantor covers the key Dow (INDEXDJX:.DJI) component at a Buy.

Large Cap Banks: Société Générale has lukewarm Holds on Dow member JPMorgan Chase (NYSE:JPM), bedeviled by the “London Whale,” and Wells Fargo (NYSE:WFC).

Moneygram (NASDAQ:MGI): The stock is initiated with an Equal Weight at Evercore.

NPS Pharmceuticals (NASDAQ:NPSP): JPMorgan has a new Overweight and $40 price objective.

(See also: Stock Upgrades: Ryanair Starts the Party Way Before Arriving in Ibiza and Stock Downgrades: Clorox Taken to the Cleaners.)
No positions in stocks mentioned.

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