New Stock Coverage: GlaxoSmithKline Keeping Up With the Dow Joneses

By Justin Sharon  MAY 15, 2014 9:11 AM

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

 


Shares of British pharmaceutical giant GlaxoSmithKline (NYSE:GSK) are showing strength in today's London trading on an upbeat analyst initiation. Its ex-China chief was just charged in a bribery scandal, but the stock offers investors a relatively plump dividend yield in excess of 4%. Among its prescription products are Flonase, Paxil, and Zantac. On the consumer side, the company's household names include Aquafresh, Breathe Right, Nicorette, Polident, Sensodyne, and Tums.
 
Ms. Smith's antipathy toward Wall Street yesterday extended to Mr. Jones (INDEXDJX:.DJI) as the blue chip index retreated from recent records with a triple-digit decline. Among stocks on the move, Sony (NYSE:SNE) slid 6.46% after announcing another loss, but at least the age-old Japanese tradition of honor is alive and well as its CEO gave back his bonus in shame. Compare this to corporate America, where an executive's reward for essentially bringing a 100-year-old company to its knees overnight was a $161.5 million payoff and a seat -- on the Audit Committee, no less -- on the board of Alcoa (NYSE:AA). The bull market started to look its age as Fossil (NASDAQ:FOSL) tumbled an S&P 500 (INDEXSP:.INX)-worst 10.27%, and "The Gray Lady" -- a.k.a. The New York Times (NYSE:NYT) -- fell 4.50% after firing its executive editor. Its archrival, Wall Street Journal owner News Corp (NASDAQ:NWSA), can't afford to be too smug itself after tumbling 2.99%. And that's before we get to the decidedly dodgy punctuation in the pages of its Post, which is enough to make English majors sic. ("Sears will sell it's stores in Canada" the headline says, assuming it still hasn't been corrected by the time you read this.) Meanwhile, Mr. Murdoch's fellow right-wing media tycoon Silvio Berlusconi suffered after his Mediaset (OTCMKTS:MDIUY) slid 6.30% due to swinging to a first-quarter loss. Then again, Mr. Bunga Bunga apparently enjoys swinging.
 
Today in economics, the Philadelphia Fed Index for May is forecast to fall from the prior month's pace at 10:00 a.m. EDT. In earnings action, retailers are increasingly coming to the fore, with JC Penney (NYSE:JCP), Kohl's Corp (NYSE:KSS), Nordstrom (NYSE:JWN), and Wal-Mart (NYSE:WMT) all due to release results.
 
Now let's turn to this morning's new coverage, a list that includes an information technology services stock in addition to GlaxoSmithKline.

ACADIA Pharmaceuticals (NASDAQ:ACAD): JPMorgan assigns an Overweight opinion and $33 price objective on the stock.
 
Cherokee (NASDAQ:CHKE): Shares are resumed with a Buy, and $20 target price, at B. Riley & Co.
 
GlaxoSmithKline: Today's headline analyst initiation is established with an Overweight at JPMorgan.
 
Rackspace (NYSE:RAX): A busy JPMorgan picks up the IT services outfit at Overweight. Its objective is $35.

Also see:

Stock Upgrades: Don't Pull Plug Power From Your Portfolio

Stock Downgrades:
Urban Outfitters a Country Bumpkin
No positions in stocks mentioned.

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