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Stock Downgrades: Javelin Mortgage Is a Falling Knife

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

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The Dow (^DJI) rose for its 20th straight Tuesday, and now stands behind only the 24 successive winning Wednesdays from 45 years ago in the all-time pantheon. (Incidentally 1968, a wretched year of assassinations, riots, and Tet, was one of the worst in American history, lest anyone think what is good for Wall Street is automatically awesome for Main.)

The free lunch for investors continued with a Breakfast at Tiffany's (TIF), which jumped 3.95% on impressive earnings. In The Great Gatsby, Carey Mulligan wears the bling king's $200,000 Savoy headpiece, named after one of the world's fanciest hotels. Somewhat ironic, since the multi-millionaire actress can more frequently be found slumming it in budget motels.

Orient Express Hotels (OEH), which owns the speakeasy-era 21 Club, would be much more to Jay Gatsby's liking, as would yesterday's 4.23% surge in its stock. Speaking of Asia, Japan's Nikkei (INDEXNIKKEI:NI225) fell a further 3.22%, and its fake-braces-wearing teens may yet boost business at Invisalign pioneer Align Technology (ALGN). Yesterday, however, it failed to make money talk, falling 0.68% on a ratings reduction.

No top-tier economic data due today, but Brown Shoe (BWS), Chico's FAS (CHS), Copart (CPRT), Daktronics (DAKT), Michael Kors (KORS), Movado Group (MOV), Sberbank Russia (OTCMKTS:AKSJF), Tata Motors (TTM), The Fresh Market (TFM), and Tootsie Roll (TR) are all expected to release results.

Brocade (BRCD): Morgan Stanley moves the stock to Underweight from Equal-Weight, sending it slumping 3.3% as I write.

Capital Lease Funding (SLSE): Shares, no longer trading on fundamentals following an $8.50 per share buyout bid, are moved to Hold from Buy at MLV & Co.

Comerica (CMA): The firm is cut to Hold from Buy at Wunderlich, whose price objective is $40.

Hennes & Mauritz (OTCMKTS:HNNMY): The Swedish clothing company, popularly known as H&M, is tumbling 2.22% overseas today after getting slashed to Sell from Neutral at Goldman Sachs.

Home Bancshares (HOMB): Noting that shares presently trade at a plump 15.5 times its 2014 EPS (Earnings Per Share) estimate, Wunderlich reduces its recommendation to Hold from Buy. The price target is $41.

Javelin Mortgage Investment (NYSE:JMI): Citigroup reduces the stock, which slumped 6.59% yesterday even amid the overall ebullience in equities, to Neutral from Buy.

Pinnacle Financial (PNFP): Shares get downgraded to Hold from Buy with a $26 target price with Wunderlich primarily due to valuation concerns.

Portugal Telecom (PT): Berenberg cuts the company to Hold from Buy.

(See also: New Stock Coverage: SeaWorld Set to Make a Splash and Stock Upgrades: Athenahealth Is in Fine Fettle.)
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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