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Stock Downgrades: FedEx Finds Good Things Don't Come in Big Packages

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

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Shares of FedEx (NYSE:FDX) are soft ahead of today's opening bell. An article in this morning's Wall Street Journal ("Web Shoppers Beware: FedEx to Charge by Package Size") suggests that the delivery giant may begin to charge not merely by weight, but rather according to how big those boxes are.
 
The Dow (INDEXDJX:.DJI), rebounding from Tuesday's tumble, ended up by triple digits, but it was a case of highway robbery elsewhere. (Quite literally for adored billboard behemoth CBS Outdoor Americas (NYSE:CBSO), which advanced 1.40%.)  Unloved gourmet grocer Whole Foods (NASDAQ:WFM) - whose CEO is one Walter Robb- Belgian endived an S&P 500 (INDEXSP:.INX)-worst 18.81%. Yahoo (NASDAQ:YHOO) slumped 6.63% after starting to cut the cord with Alibaba and the Forty Thieves. And Tesla Motors (NASDAQ:TSLA) stock looks like a steal, sliding some 7.62% as we speak. At least its cars are practically impossible to pilfer.

Today's quarterly earnings announcements include Monster Beverage (NASDAQ:MNST), 
Priceline (NASDAQ:PCLN), Regeneron (NASDAQ:REGN), and RocketFuel (NASDAQ:FUEL).
 
Now let's look at this morning's rating reductions, an eclectic bunch that features a pharmaceutical firm plus headline stock FedEx.

Allergan (NYSE:AGN): The Botox owner gets a post-earnings downgrade to Neutral from Buy at UBS. Its amended price objective is $180.
 
Cliffs Natural Resources (NYSE:CLF): Sanford Bernstein cuts the iron ore outfit to Underperform from Market Perform.
 
FedEx: Shares are slashed to Equal Weight from Overweight by Barclays. The target price, previously $160, falls to $140.
 
Gulfport Energy (NASDAQ:GPOR): GPOR gets downgraded to Market Perform from Outperform with Wells Fargo.
 
HollyFrontier (NYSE:HFC): Shares are now Underperform from Neutral at Macquarie.
 
Media & Entertainment: Deutsche Bank removes both 21st Century Fox(NASDAQ:FOXA) and Viacom (NASDAQ:VIAB) from its Short-Term Buy list.
 
Merck (NYSE:MRK): Another downgrade for the drug stock, the poorest performing blue chip for the past two days. This morning BMO Capital Markets moves it to Perform from Outperform.
 
Millennial Media (NYSE:MM): Shares are taken to Underweight from Equal-Weight at Morgan Stanley.
 
Penn National Gaming (NASDAQ:PENN): The stock gets downgraded to Underweight from Equal-Weight at Morgan Stanley, which also trims its price target to $10 from $12.
 
ReachLocal (NASDAQ:RLOC): Bank of America Merrill Lynch lowers the stock by an unusual 180 degrees, to Underperform from Buy.
 
SABMiller (SBMRY): The brewing behemoth is now Neutral from Buy, again at Bank of America Merrill.
 
Sanderson Farms (NASDAQ:SAFM): Goldman Sachs gives the firm a Neutral-from-Buy downgrade.
 
Storage Stocks: Jefferies cuts both Extra Space Storage (NYSE:EXR) and Public Storage (NYSE:PSA) to Hold from Buy.
 
Vivendi (OTCMKTS:VIVHY): The French firm is moved to Market Perform from Outperform by Sanford Bernstein.

Also see:

New Stock Coverage: Del Frisco's Steaks Its Claim

Stock Upgrades: Twitter Isn't So Birdbrained After All
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No positions in stocks mentioned.
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