Upgrades and Downgrades: Powering Up General Electric

A late day fade in choppy trading and light volume sent shares modestly lower, equities snapping their four session winning streak despite better than expected retail sales. Steel stock Nucor (NUE) slumped 3.07% and anything iron similarly had a bad day at the office. Ore producer Cliffs Natural Resources (CLF) fell off one, a 6.47% slump making it the S&P 500′s worst performer, while the Eiffel Tower also endured a torrid time. Bullion by contrast had better luck. It rose to $1269.70 an ounce, a “new all-time high” for those who forget it would need to top out at an inflation-adjusted $2,300 to truly merit that distinction. Newmont Mining (NEM) was a big beneficiary, up 4.02% to a level last seen in September 1987 -- we won’t mention what happened one month later. Next thing you know they’ll be successfully panning for gold in them thar hills again. (Cynics who say that’s nothing but a fish story don’t know the half of it.)

Green Mountain Coffee Roasters (GMCR) gave up 1.84% after an $890 million acquisition but the other hot beverage was on fire with tea party candidates cleaning up and Great Atlantic & Pacific Tea (GAP) surging 9.20%. Mens Wearhouse (MW) advanced a further 2.01% to continue last week’s earnings-related surge. The company has thus far done a decent job by appealing to only half the human race but efforts to broaden its appeal to women make sense, especially with the wage gap between both genders narrowing to a record low. Today in economics, slight upticks are seen in August Industrial Production and Capacity Utilization at 9:15AM Eastern. On the earnings front Apogee Enterprises (APOG), Dress Barn (DBRN) are all expected to report results.

Initiations

General Electric (GE): Key Dow component General Electric is initiated with Buy at Citigroup.

Industrial Stocks: The brokerage also begins covering a slew of other industrial conglomerates. Its other Buys include Cooper Industries (CBE), Danaher (DHR), and Tyco International (TYC). Among the Holds are Emerson (EMR), 3M (MMM), Honeywell (HON), ITT Corp (ITT), W.W. Grainger (GWW), and United Technologies (UTX). Ingersol Rand (IR) is included in those stocks assigned a Sell.

Quiksilver (ZQK): The stock has a new Hold rating and $3.50 target price at Jefferies.

SolarWinds (SWI): MKM Partners begins SolarWinds with a Buy and $21 target. Also read Renewable Auction Mechanism May Boost Solar ETFs.

Symantec (SYMC): The firm also has a new Neutral and $17 price objective on Symantec.

Oracle (ORCL): The stock is resumed with an Outperform at Wells Fargo.

Shipping Stocks: Wells Fargo also starts coverage of the shipping industry. Standout Outperforms include Eagle Bulk Shipping (EGLE), Genco Shipping & Trading (GNK), Seaspan Corporation (SSW), Teekay Corporation (TK), General Maritime (GMR), Frontline Ltd. (FRO) and Diana Shipping (DSX). Also read Freight Rates' Mixed Connections.

Upgrades

Luxottica (LUX): The stock gets lifted to Buy from Hold at Deutsche Bank.

Penn West Energy (PWE): BMO Capital boosts Penn West Energy to Outperform from Market Perform.

REITs: Equity Residential (EQR) -- Outperform from Underperform -- and Mid-America Apartment Communities (MAA) -- Outperform from Neutral -- are each upgraded at Macquarie. It also gives Neutral from Underperform raises to Avalonbay Communities (AVB) and BRE Properties (BRE), with respective price objectives of $101 and $44. For more on the sector, see Growing Rental Trends Undermining US Home Sales.

NetLogic (NETL): The stock is now Buy from Neutral at UBS.

Rowan Companies (RDC): RDC is raised to Buy from Neutral at UBS.

Downgrades

GlaxoSmithKline PLC (GSK): British pharmaceutical giant GlaxoSmithKline PLC gets downgraded to Hold from Buy at Jefferies International, which cites the increasing risk that its key Avandia drug to treat type two diabetes could be pulled in both Britain and continental Europe. The FDA announcement regarding “whether to remove Avandia from the market could come at any time” according to the broker, with some studies linking it to heart attacks. That said, after the AdCom vote in Avandia’s favor it is generally expected to remain on the market.

Nokia (NOK): Staying abroad, Nokia is now Sell from Hold at Citigroup after recent share price strength.

Tyco International (TYC): Sanford Bernstein takes Tyco International to Market Perform from Outperform.

Tech Stocks: Maxim Integrated Products (MXIM) -- Sell from Neutral — and Micron Technology (MU) -- Neutral from Buy -- each get cut at Goldman Sachs.

REITs: Macquarie reduces ratings on Apartment Investment Management (AIV) and Camden Property Trust (CPT), each now Neutral from Outperform. Price targets are $12 and $50, respectively.

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