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New Stock Coverage: PepsiCo Sows Its Quaker Oats


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

Investors continue to buy Purchase-based PepsiCo, Inc. (NYSE:PEP), which hit a historic high on May 30. The company, whose other brands include Frito-Lay and Quaker Oats, finished yesterday at an even $88.00. Recent first quarter earnings were extremely impressive, although some market watchers are starting to worry that its valuation is becoming stretched.
Era-ending events are rarely obvious at the time, only becoming so in retrospect. (It has been said that Barry Goldwater actually won the 1964 election -- it just took 16 years to count the votes.) Thus there is an excellent chance that future historians will one day say Monday, June 9 was the moment that this mother of all bull markets officially ended, even as equities hit historic highs. For yesterday was when unprofitable Internet outfit GoDaddy filed paperwork to go public. Concerns regarding a market top are, however, for the future. For now let us all hail records number nine and 19 respectively for the Dow Average (INDEXDJX:.DJI) and S&P 500 (INDEXSP:.INX) in 2014. On Wall Street of course history has shown that after the bubble comes the bath, but Calgon (NYSE:CCC), having just been taken away to an all-time high, won't care one bit. Broker boosts sent both Family Dollar (NYSE:FDO) and Dollar General (NYSE:DG) surging, although, in what is now the sixth year of "recovery," how interesting that dual discount retailers, which tend to do best in a recession, are still so strong. Not all equities enjoyed identical ebullience. Car rental company Hertz (NYSE:HTZ) now resembles nothing so much as trying to catch a falling knife after following up Friday's 9.05% nosedive with another 2.88% tumble. This, two decades to the week after its most infamous spokesman tried in vain to escape.
Today in economics, April wholesale inventories are out at 10:00 a.m. EDT. On the corporate front, Burlington Stores (NYSE:BURL) and RadioShack (NYSE:RSH) each released results earlier this morning.
Now let's turn to this morning's new stock coverage, a list that includes a couple of energy giants in addition to PepsiCo.

Advanced Micro (NYSE:AMD): Shares are assigned an Outperform and $5 price objective at Imperial Capital amid optimism over its new business model.

Cheniere Energy (NYSEMKT:LNG): Raymond James picks it up at Perform.
Domino's Pizza (NYSE:DPZ): The fast food firm is a fresh Buy at Jefferies.
Nimble Storage (NYSE:NMBL): Barclays starts the stock at Equal Weight.
Oil Stocks: Deutsche Bank resumes coverage on dual Dow members Chevron (NYSE:CVX) (Buy) and Exxon Mobil (NYSE:XOM) (Hold).
PepsiCo, Inc.: Today's headline analyst initiation is established at a bullish Buy by Jefferies.
Soft Drink Stocks: Jefferies has only a Hold on blue chip beverage behemoth Coca-Cola (NYSE:KO) but is more upbeat on Dr Pepper Snapple (NYSE:DPS) and Monster Beverage (NASDAQ:MNST), both Buy rated.
TrueCar (NASDAQ:TRUE): The stock is a new Sector Perform ($17 target price) at RBC Capital.
VeriFone (NYSE:PAY): Morgan Stanley starts the stock at Equal Weight.

Also see:
Stock Upgrades: You, Too, Can Be a Netflix Billionaire

Stock Downgrades: As It Happens, Lady Luck Isn't Staying in Las Vegas Sands
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No positions in stocks mentioned.
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