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Stock Downgrades: Boeing Going Lower


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

Key Dow (INDEXDJX:.DJI) component Boeing (NYSE:BA) slipped 0.51% yesterday even as the index enjoyed its fourth straight historic high. Further turbulence can be expected, according to an analyst whose concerns include an excessive valuation and limited upside potential amid a lack of upcoming catalysts.
An economics professor certainly livened things up in the evening, but the absence of any top-tier economic data during the day made for a decidedly sleepy session on Wall Street. Blue chips did hit another record high, but a paltry 0.02% increase amid anemic volume, a tight trading range, and ever fewer equities making fresh bests speaks to the market's bad breadth. Not that Colgate (NYSE:CL) is complaining, for it just jumped to an all-time summit on a broker boostCherokee (NASDAQ:CHKE) surged 12.11%, which will doubtless inspire Elizabeth Warren as she tries to tackle the income inequality that so troubles the multibillionaire chief of Goldman Sachs (NYSE:GS). International Business Machines (NYSE:IBM), which recently achieved an Indian summer, suffered a nuclear winter in dropping a Dow-worst 1.93%. Pride of Arkansas Tyson Foods (NYSE:TSN) tumbled 3.81% on a rating reduction, with analysts at Credit Suisse (NYSE:CS) calling the company "dead money." Not to be confused with "dead broke," a comment that continues to get an ex-Arkansas first lady into Hot Springs water.
The aforementioned slow week in economics continues with no top-tier data due today, but H&R Block (NYSE:HRB) and Restoration Hardware (NYSE:RH) each release earnings.
Now let's look at this morning's rating reductions. There are relatively few -- and such unbridled analyst optimism is almost always the sign of a market top -- but besides Boeing, they include both a medical company and hotel giant.

Bancorp Inc (NASDAQ:TBBK): Sterne Agee slashes the stock to Neutral from Buy.
B/E Aerospace (NASDAQ:BEAV): The manufacturer of aircraft seats, fresh from announcing it will split into two public entities, gets Hold-from-Buy downgrades by both Canaccord Genuity and Jefferies.
Boeing: RBC Capital reduces its rating to Perform from Outperform, sending the stock off 1.20% as we speak. The amended price objective is $145.
Marriott International (NASDAQ:MAR): Macquarie moves the accommodation outfit to Outperform from Neutral.
Parexel (NASDAQ:PRXL): The medical laboratories stock gets lowered to a still-bullish Buy from Strong Buy at ISI Group. Valuation issues loom understandably large after recent share price strength.

Also see:

New Stock Coverage: Beware National Bank of Greece -- a Bull Bearing Gifts?

Stock Upgrades: As World Cup Begins in Brazil, Time to Head Into Amazon

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No positions in stocks mentioned.
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