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Stock Downgrades: Infoblox Stock Dead on Arrival After CEO Departure


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

Infoblox (NYSE:BLOX) shares are imploding 30.80% even as we speak after the company cut its full-year earnings forecast and announced that long-serving CEO Robert Thomas is leaving.
Eight European stock markets were closed in observance of Ascension Day but, here at home, stocks continued their inexorable rise. Future historians will marvel that the S&P 500 (INDEXSP:.INX) set its 13th record of the year on the very day that our economy actually contracted by 1%, but extremely unlucky is anyone who has missed out on this remarkable run. The Dow (INDEXDJX:.DJI) instead opted to focus on better economic data, namely, continuing unemployment claims falling to their lowest level since August of 2007. (Bonds was back then and, amid a remarkable recent run in Treasuries, bonds still are.) Elsewhere a suddenly back-in-favor Apple Inc. (NASDAQ:AAPL), as much of a Bay Area icon as Barry ever was, advanced 1.82% for its eighth increase in nine sessions. Thus did the Cupertino company dial back the glory days even as its futuristic flip phones from 1984 finally saw the light of day. Back in that Orwellian year, America's GDP was a barely believable 7.2%. Truly, an economic nirvana the likes of which we won't soon see again. RadioShack (NYSE:RSH) which is all about the Dynasty decade, rose 9.85% in a session that saw its biggest intra-day surge since, yes, 1980. That eventful year, in December alone, brought us both the death of Lennon and the birth of Apple as a public company. Express Inc. (NYSE:EXPR) also arrived on the scene some 34 years ago, but its stock, tumbling 12.47% before the bell, is today seeing a stampede for the exits.
This morning in economics, this month's Chicago Purchasing Managers Index is out at 9:45 a.m. EDT, with the University of Michigan's final figure for May consumer confidence arriving at 9:55 a.m. In earnings action, retailers Ann Inc. (NYSE:ANN) and Big Lots (NYSE:BIG) each released results earlier.
Now let's look at this morning's rating reductions, an eclectic bunch that features an American airline and Canadian financial firm plus headline stock Infoblox.

Alaska Air (NYSE:ALK): Stifel slashes the stock to Hold from Buy.
Hillshire Brands (NYSE:HSH): The maker of Jimmy Dean sausages and Ball Park hot dogs surged some 17.73% yesterday on a $6.1 billion acquisition offer from Tyson  Foods (NYSE:TSN). Today, however, it is taken to Perform from Outperform by Sanford Bernstein.
Infoblox: Deutsche Bank (Hold from Buy, price objective taken to $18 from $30), Pacific Crest (Sector Perform from Outperform), and William Blair (Market Perform from Outperform) all reduce ratings on an equity that is about to endure an extremely ugly day.
KingFisher (OTCMKTS:KGFHY): Shares are slashed to Equal Weight from Overweight by Barclays.
OmniVision (NASDAQ:OVTI): Raymond James reduces its rating to Underperform from Perform, but the stock also scores an analyst upgrade this morning and is surging some 7.99% even as we speak after an earnings beat.
ReneSola (NYSE:SOL): The stock is now Neutral from Buy at Roth Capital.
Royal Bank of Canada (NYSE:RY): CIBC World Markets cuts its fellow Canadian financial firm to Perform from Outperform.
Vestas Wind Systems (OTCMKTS:VWDRY): The Danish turbine titan gets downgraded to Neutral from Buy at Goldman Sachs.

Also see:

New Stock Coverage: Markets Set for a Summer Melt-Up? Exelon Won't Melt Down, Even in a Nuclear Winter

Stock Upgrades: Stick With Tiffany's Carats
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