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Stock Downgrades: Zillow Inc Is in Real Trouble


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

With Congress, those hardworking devils, gone fishin' until September 9, Wall Street left Charles in Charge. Not a good idea, for Mr. Evans' taper talk swiftly saw stocks suffer their worst drop since June. (At least Charles & Colvard (CTHR), which jumped 15.73% amid the downdraft, was one Chuck to buck the trend.) Another strong performer was watchmaker Fossil (FOSL). Only twenty-four hours after slumping 6.04% to post the S&P 500′s (^GSPC) poorest performance, it easily topped the index in surging some 17.81%. As shares have since been downgraded this morning, I would say what a difference Today makes, but Al Roker - who could clearly use one of the company's alarm clocks - would never forgive me. Washington Post (WPO) rose 4.27% thanks to, if not All, then certainly One of The President's Men.

Elsewhere Children's Place (PLCE) tumbled 2.09% to lose its shirt, although that may not be a bad thing in the company's case. Math is hard? Try telling that to International Business Machines (IBM) CEO Virginia Rometty, who graduated with high honors degrees in computer science and electrical engineering, thank you very much. Still, her unloved stock did drop a Dow (^DJI)-worst 2.31%.

There isn't any top-tier economic data due today, but quarterly earnings announcements are expected out of AOL, Inc. (AOL), Duke Energy (DUK), Green Mountain Coffee Roasters (GMCR), Groupon (GRPN), Mondelez (MDLZ), Ralph Lauren (RL), Tesla Motors (TSLA), Time Warner (TWX), Transocean (RIG), and Wendy's (WEN).

Allied Nevada (ANV): RBC Capital cuts the small cap commodity company to Underperform from Sector Perform.

AXA SA (AXAHY): Shares are cut to Market Perform from Outperform at Keefe Bruyette.

Bayer AG (BAYRY): A second downgrade since last week's earnings announcement for the Aspirin outfit, today taken to Hold from Buy at Berenberg.

C.H. Robinson (CHRW): The transportation name is now Underperform from Market Perform with Wells Fargo.

CVS Caremark (CVS): Citing valuation concerns and issues involving the company's Medicare Part D business, Cantor Fitzgerald cuts the stock to Hold from Buy. Its price objective, previously $65, is trimmed to $62.

Endeavour International (END): END gets taken to Hold from Buy at Canaccord Genuity.

Fossil (FOSL): Never a dull moment for the watchmaker, which was the worst S&P 500 (^GSPC) stock on Monday and the best yesterday. Today it is taken to Neutral from Buy at Citigroup.

Furniture Brands (FBN): Shares are slashed to Sell from Hold at Stifel, which says bankruptcy is a possibility.

Goldcorp (GG): The equity is now Neutral from Buy at Davenport.

KCAP Financial (KCAP): Shares are moved to Market Perform from Outperform by Keefe Bruyette.

Marathon Oil (MRO): Bank of America-Merrill Lynch lowers the energy firm to Neutral from Buy.

Norilsk Nickel (NILSY): The Russian commodity company is now Underweight from Neutral at JPMorgan.

Pacira Pharmaceuticals (PCRX): Shares, up over 4% in yesterday's down market, are now Neutral from Overweight at Piper Jaffray.

RDA Microelectronics (RDA): The European tech stock is taken to Buy from Strong Buy at Needham, which also reduces its target price by $1 to $13. A soft second half of the year outlook is a worry.

Regional Management (RM): RM is reduced to Hold from Buy at Jefferies.

RTI Biologics (RTIX): Canaccord Genuity gives the company a Hold-from-Buy ratings reduction.

Ryman Hospitality (RHP): Shares are now Neutral from Overweight at JPMorgan.

Solta Medical (SLMT): Canaccord Genuity gives the small cap company a Hold-from-Buy cut.

Sotheby's (BID): The auction house is downgraded to Hold from Buy at Craig Hallum.

Zillow Inc (Z): RBC Capital cuts its rating on the real estate information outfit to Sector Perform from Outperform. Shares are imploding about 8% as I write, after the company announced a Q2 loss.

(See also: Stock Upgrades: Yum! Brands, Inc. Is Good Enough to Eat and New Stock Coverage: Bet the Bank on Baxter International Inc.)
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