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Stock Downgrades: Bebe About to Take a Bath


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

Retail stock bebe stores (NASDAQ:BEBE) has sunk along with the bathwater over the last year, tumbling 43.55% in that time to a fresh low late last week. It recently reported a pretax hit of approximately $5.5 million to exit the "2b bebe" business. The fashion firm is also incurring additional restructuring charges by culling about 10% of its total workforce.
With Marissa Mayer nodding off and the star of Money Never Sleeps spending the night in the slammer, equities understandably opted to rest. Amid anemic trading, the Dow (INDEXDJX:.DJI) and S&P 500 (INDEXSP:.INX) each ended off slightly, although some stocks were standouts. In the week we lost the incomparable composer of Once Upon a MattressMattress Firm Holding (NASDAQ:MFRM) finished Friday up 1.38% at a historic high to show it is far more profitable than stuffing money in, well, you know. The benchmark bourse has now failed to end up or down 1% for 50 straight sessions, its longest such streak since 1995. That was the year Hugh Grant starred in The Englishman Who Went Up a Hill But Came Down a Mountain, which is a mouthful even for Luis Suárez. Not bad investment advice, mind you. Especially in a week when Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Iron Mountain (NYSE:IRM) rose a respective 6.80% and 15.11%. (Completing the teton trifecta, Keurig Green Mountain (NASDAQ:GMCR) was the S&P 500′s top performer on Friday, gaining 4.05% on a broker boost.) GoPro (NASDAQ:GPRO) jumped 31% in an IPO that was the biggest since Duracell in 1991, the year we won the Gulf War in 100 hours to solve all our issues in Iraq. On the same day, Merry Maid owner ServiceMaster Global Holdings (NYSE:SERV) rose 5.5% in its market debut. And a certain Italian soccer star made a hotel maid merry, by showing her his nibbled cold shoulder.
Today in economics, at 10:00 a.m. E.D.T. May pending home sales are expected to tick up from April's pace.

Now let's look at this morning's rating reductions, an eclectic bunch featuring a German medical giant and Swiss agribusiness outfit, plus headline stock bebe stores.

bebe stores: B. Riley reduces its rating on today's headline stock to Neutral from Buy.
Fresenius Medical (NYSE:FMS): The German medical company gets downgraded to Underperform from Hold at Jefferies.
Philip Morris (NYSE:PM): Wells Fargo pulls the tobacco titan from its Priority Stock List.
Rayonier (NYSE:RYN): RBC Capital reduces RYN to Perform from Outperform amid concerns regarding new home construction. Its price objective, previously $52, falls to $37.
Syngenta (NYSE:SYT): The Swiss agribusiness outfit is now Underweight from Neutral at JP Morgan.
Tilly's (NYSE:TLYS): B. Riley takes TLYS to Neutral from Buy.
UNITIL Corporation (NYSE:UTL): Due to valuation issues, Brean Capital cuts the company to Hold from Buy.
Wells Fargo (NYSE:WFC): Macquarie moves the banking behemoth to Underperform from Neutral.
Also see: 

Stock Upgrades: Money Never Sleeps at Marissa Mayer's Yahoo

New Stock Coverage: If Only Jeff Bezos Had Invested in DaVita 
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No positions in stocks mentioned.
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