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Stock Downgrades: The Wheels Keep Coming Off Coach


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

Coach (NYSE:COH) continues to look like a train wreck. Shares in the luxury handbag and accessories outfit have tumbled 31.67% in the past 12 months alone amid heavyweight competition from upstarts including Michael Kors (NYSE:KORS). Its stock is showing further weakness before the bell after getting downgraded on concerns such as sluggish sales trends and a turnaround in its key domestic market that always appears to be a day away.
The bear is currently taking a break -- in Florida on a hammock, actually -- but we all know it will be back. Bear State Financial (NASDAQ:BSF), which nosedived 9.02% on its first day honoring Wall Street's most feared mammal, knows that better than most. As it was, yesterday's pain was minor, but Dow Industrials (INDEXDJX:.DJI) did retreat from recent records. Speaking of monikers, the marvelously misnamed Wynn Resorts (NASDAQ:WYNN) was the S&P 500′s (INDEXSP:.INX) biggest loser, falling 4.49% as casino stocks took a hit on Macao revenue in the month of May. Competitor MGM Resorts (NYSE:MGM) tumbled 2.87%, or $0.75. Seventy-five cents sounds like small potatoes, but that is exactly the amount that just cost seven Cambodians their lives. Toronto Dominion Bank (NYSE:TD), whose hometown mayor knows all about getting high, rose 0.52% to a historic high, and Twitter (NYSE:TWTR) advanced 2.61% as a fifth columnist at The New York Times (NYSE:NYT) created her own, uh, hash tag. And 50 Cent put his two cents worth into Bitcoin. He will either Get Rich or Die Tryin' but it may be best to Go Shawty on the virtual currency, given that Jay-Z embraced the euro exactly as it started to implode.
Today in economics, the Institute for Supply Management's May services index is expected to expand slightly from the prior month's pace at 10:00 a.m. EDT. At 2:00 p.m., the Federal Reserve releases its Beige Book detailing regional financial conditions in a dozen districts. On the earnings front, Brown-Forman (NYSE:BF.B), Hovnanian Enterprises (NYSE:HOV), and PVH Corp (NYSE:PVH) all announce results.
Now let's look at this morning's rating reductions, an eclectic bunch that features a British bank, French advertising outfit, and Silicon Valley software stock in addition to our headline equity Coach.

Barclays (NYSE:BCS): Shares are sliding in today's European trading after being taken to Neutral from Overweight at HSBC Securities, which worries about the British bank's "much worse than anticipated" trading revenue prospects.
Coach: The troubled handbag titan is now Neutral from Buy at Sterne Agee. Its target price is also trimmed by $10 to $41.
Norwegian Cruise Line (NASDAQ:NCLH): Longbow lowers the cruise company to Neutral from Buy.
Publicis (OTCMKTS:PUBGY): The Paris advertising name is now Neutral from Buy at Nomura after its recent abandonment of a proposed merger.
SABMiller (OTCMKTS:SBMRY): Morgan Stanley slashes the brewing behemoth to Equal Weight from Overweight due to valuation issues. As a result, the stock is lower in today's London trading.
TIBCO Software (NASDAQ:TIBX): Shares, falling 15.20% before the bell, are reduced to Neutral from Buy at Mizuho following three consecutive quarters of under-performance in Spotfire. The price objective, previously $25, gets lowered to $18.

Also see:

New Stock Coverage: Monster Beverage Isn't So Scary After All

Stock Upgrades: Meet Newell Rubbermaid, on a Road to Riches
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