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Stock Downgrades: Dark Day for Lululemon Athletica Inc.

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

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You know it's a dull day on Wall Street when, amid a dearth of economic data, a packaging stock is easily the NYSE's top performer. Not to take anything away from KapStone's (KS) 17.90% surge, but with the paper envelope now officially on its last legs, that check may be in the mail for a while.

Annie's Inc. (BNNY), which makes a mean mac and cheese, surged 6.41%. Apple Inc. (AAPL), which used to make a mean iMac, fell after new product announcements failed to excite. Moving from "my ass" to a big booty, B&G Foods (BGS) plundered a Pirate for $195 million.

Elsewhere a star of Sex and the City teamed with the fancy footwear Manolo Blahnik. All the better to deliver a good stiff kick up the rear to Lululemon (LULU), whom investors are about to give the bum's rush in a big way.

Today in economics, April wholesale inventories are out at 10:00 a.m. Eastern. On the earnings front, Medical Action (MDCI), Prada (PRDSY), and Ulta Salon, Cosmetics & Fragrance (ULTA) are each expected to report results.

Cemex SAB de CV (ADR) (CX): Scotia Capital moves the Mexican cement giant to Perform from Outperform.

Everest Re Group Ltd (RE): RE gets downgraded to Neutral from Buy at Goldman Sachs.

Kinross Gold Corporation (USA) (KGC): Canaccord cuts the commodity company to Hold from Buy.

Lexicon Pharmaceuticals, Inc. (LXRX): Morgan Stanley moves the stock to Underweight from Equal-Weight.

Lululemon Athletica inc. (LULU): Shares, imploding 13.71% as I write, are lowered to Neutral from Buy at UBS after CEO Christine Day unexpectedly announced she is leaving the company.

Maxim Integrated Products Inc. (MXIM): The tech stock, which tumbled 2.49% yesterday, is today taken to Neutral from Positive at Susquehanna.

Moody's Corporation (MCO): A second downgrade in as many days for the firm, today taken to Hold from Buy with a revised $71 price objective at The Benchmark Company. Ratings revenue growth could fall to the low-single digits in the third quarter of 2013, the broker believes.

Roadrunner Transportation Systems Inc (RRTS): Stifel slashes its rating to Hold from Buy amid issues over the stock's steep valuation.

XenoPort, Inc. (XNPT): The stock is taken to Underweight from Equal-Weight at Morgan Stanley.

(See also: New Stock Coverage: Time to Shop at Casey's General Stores and Stock Upgrades: Disney Tries to Engineer a Turnaround Tuesday.)
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No positions in stocks mentioned.
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