The power of fear and derivatives makes for a potent cocktail….
Comments »Hussman: Recession Probability ‘Near 100 Percent’
Top Ten European Unsecured Bank Debt Issue
Upgrades and Downgrades This Morning
Upgrades
DOV – Dover initiated with a Hold at Stifel Nicolaus
RBN – Robbins & Myers initiated with a Buy at Stifel Nicolaus
HRB – H & R Block upgraded to Outperform at Oppenheimer
MCK – McKesson added to Conviction Buy list at Goldman
PH – Parker-Hannifin initiated with a Buy at Stifel Nicolaus
RAD – Rite Aid upgraded to Outperform from Neutral at Credit Suisse
AMLN – Amylin Pharma upgraded to Outperform from Market Perform at BMO Capital
QSII – Quality Systems upgraded to Buy at Stifel Nicolaus
Downgrades
NVDA – NVIDIA downgraded to Market Perform from Outperform at JMP Securities
PRU – Prudential downgraded to Equal Weight from Overweight at Morgan Stanley
ABC – AmerisourceBergen removed from Conviction Buy list at Goldman
SCHW – Charles Schwab downgraded to Hold from Buy at ISI Group
WAG – Walgreens downgraded to Neutral from Outperform at Credit Suisse
IL – IntraLinks Holdings downgraded to Hold at Stifel Nicolaus
DWA – Dreamworks Animation downgraded to Sell from Neutral at Janney Montgomery Scott
BIG – Big Lots initiated with a Hold at Keybanc
SYKE – Sykes Enterprises downgraded to Hold at Stifel Nicolaus
SGS – Stream Global Services downgraded to In Line from Outperform at Imperial Capital
RBCN – Rubicon Tech downgraded to Neutral from Buy at UBS
PFG – Principal Fincl downgraded to Underweight from Equal Weight at Morgan Stanley
ADSK – Autodesk downgraded to Neutral from Buy at BofA/Merrill
SMG – Scotts Miracle-Gro downgraded to Neutral from Buy at Suntrust
ROVI – Rovi downgraded to Underperform from Outperform at Credit Agricole
N – NetSuite initiated with an Outperform at Wells Fargo
SWI – SolarWinds upgraded to Buy at Needham
ANF – Abercrombie & Fitch downgraded to Neutral from Buy at Suntrust
CFX – Colfax initiated with a Hold at Stifel Nicolaus
DLB – Dolby Labs downgraded to Neutral from Overweight at Piper Jaffray
ALSK – Alaska Comms downgraded to Underperform from Neutral at BofA/Merrill
HIG – Hartford Financial upgraded to Overweight from Equal Weight at Morgan Stanley
POWL – Powell Inds downgraded to Hold at Stifel Nicolaus
MRX – Medicis downgraded to Market Perform from Outperform at Wells Fargo
Comments »Gapping Up and Down This Morning
Gapping Up
SODA +9.6%, KITD +19.5%, PANL +8%, EZPW +7.3%, ORCC +5.1%, ASTM +4.2%, SLXP +3.9%, DF +2.2%,
SVA +7.2%, YHOO +2.7%, SGI +2.7%, SVM +1.4%, CLNE +1.2%, YONG +3.2%, CRIS +1.1%,
Gapping Down
PAA -2.9%, VALE -2.5%, ALLT -2.3%, ATVI -2.1%, ROVI -21.1%, ENER -18%, NILE -17%, POWL -16.5%,
STEC -14.5%, SYNM -11.8%, ING -11.7%, WTW -9%, VLNC -8.5%, MKTG -8.5%, MT -8.4%,
ADBE -5.3%, BHP -5.1%, LYG -4.8%, RIO -4.6%, CS -4.4%, CNK -4.2%, BBL -3.9%,
DB -8%, HBC -7.5%, SINA -6.8%, BCS -6.2%, UBS -5.9%, RBCN -5.6%, ACTS -5.5%, DIOD -5.3%,
Comments »In Play and On the Wires
VAGRANTS: THIS IS OCCUPY WALL STREET #OWS
“I have the police in here 10 times a day, [and] I’m the bouncer. I’ve been called the spawn of the devil. “It’s unbelievable what goes on in here every day, ” Tzortzatos said.
And on Friday, she said, a crazed squatter burst into the shop and demanded that workers fill a 10-gallon container of water.
When they refused, “he banged it on the ground and started yelling” and threatened the staff, she said.
“He said he was entitled to have it for free.”
Tzortzatos said the unsafe conditions begin at around 5 p.m. every day, when “they come from the park drunk, under the influence of something.
“They use one of our doorways as a bathroom, and we have to scrub it down every morning.
“I’ve had people come in here and yell, ‘Boycott! Boycott!’
“They unplugged my ATM machine and plugged in their computers,” Tzortzatos said.
Comments »Dividend Blue Chips For Your Consideration
Mullaney: Stocks May Plunge 25 Percent-30 Percent
“Stocks are less expensive than average,” he tells Yahoo. “We have price-earnings multiples on a forward basis of 12 now, and the average is probably 16. But if we continue in this sluggish period of economic growth, then 12 may still be too high.”
Major bull markets generally don’t begin until the P-E ratio comes down to single digits, Mullaney says. ”
Comments »Upgrades and Downgrades This Morning
Upgrades
TRMB – Trimble Navigation initiated with a Buy at Janney Mongeromery Scott
CBL – CBL & Assoc upgraded to Buy at Stifel Nicolaus
EMR – Emerson upgraded to a but at Citigroup
HON – upgraded to Buy from Neutral at Citigroup
FITB – Fifth Third initiated with a Buy at UBS
KEY – KeyCorp initiated with a Buy at UBS
DX – Dynex Capital upgraded to Buy from Hold at Cantor Fitzgerald
RAX – Rackspace upgraded to Buy at Kaufman Bros
STJ – St. Jude Medical upgraded to Outperform from Neutral at Credit Suisse
IVC – Invesco initiated with an Overweight at Morgan Stanley
TMH – Team Health Holdings upgraded to Buy from Neutral at Citigroup
BEN – Franklin Resources initiated with an Overweight at Morgan Stanley
ATK – Alliant Tech downgraded to Neutral from Buy at Suntrust
KRC – Kilroy Realty upgraded to Buy at Stifel Nicolaus
YPF – YPF Soc. Anonima upgraded to Buy from Neutral at BofA/Merrill
QNST – QuinStreet downgraded to Neutral from Outperform at Credit Suisse
CMA – Comerica initiated with a Buy at UBS
XYL – Xylem initiated with an Outperform at Wedbush
ATK – Alliant Tech downgraded to Sector Perform from Outperform at RBC Capital
CYN – City National initiated with a Buy at UBS
KKR – KKR initiated with an Equal Weight at Morgan Stanley
Downgrades
SNY – Sanofi-Aventis downgraded to Sell from Hold at Collins Stewart
RIMM – Research In Motion downgraded to Equal Weight from Overweight at Barclays
VRTX – Vertex Pharm downgraded to Neutral at Robert W. Baird
EXPE – Expedia downgraded to Underweight from Equal Weight at Morgan Stanley
ALU – Alcatel-Lucent downgraded to Neutral from Buy at BofA/Merrill
CBE – Cooper Industries downgraded to Neutral from Buy at Citigroup
BPO – Brookfield Properties downgraded to Hold at Stifel Nicolaus
HPT – Hospitality Props downgraded to Neutral from Buy at Janney Montgomery Scott
ASEI – American Science & Engineering downgraded to Sell at The Benchmark Company
NVS – Novartis AG downgraded to Hold from Buy at Collins Stewart
ITW – Illinois Tool downgraded to Neutral from Buy at Citigroup
BKE – Buckle downgraded to Neutral from Positive at Susquehanna
PNG – PAA Natural Gas Storage downgraded to Equal Weight from Overweight at Barclays
FII – Fed Investors initiated with an Underweight at Morgan Stanley
PXD – Pioneer Natural Resources downgraded to Neutral from Positive at Susquehanna
AB – AllianceBernstein initiated with an Underweight at Morgan Stanley
OVTI – OmniVision downgraded to Neutral from Outperform at Wedbush
NKA – Niska Gas Storage downgraded to Underweight from Equal Weight at Barclays
WMS – WMS Industries downgraded to Underperform from Buy at Credit Agricole
Comments »Gapping Up and Down This Morning
Gapping up
ASML +2.1%, DB +1.5%, VSAT +1.4%, VIMC +19.6%, PKT +16.7%, TRAK +10.9%, RPRX +9.1%,
LYG +6%, FRO +3.9%, GTAT +3.8%, SIG +3.1%, PCLN +2.8%, RAX +2.4%, NAT +2.3%, HOLX +2.3%,
Gaping down
LGCY -5.2%, URBN -4.4%, DYN -3.7%, KW -3.7%, TRGT -50.3%, LXU -11.1%, HOS -6%, ETP -3.4%,
PXD -3.3%, AZN -3.3%, TGI -2.5%,
Comments »In Play and On the Wires
Roubini: The Next MF Global Could Be Goldman Sachs
“Roubini was in fine form yesterday, scaring the bejeezus out of his followers on Twitter by saying that several huge financial institutions could collapse in the blink of an eye like MF Global.
These houses of cards, Roubini tweeted, include:
The problem, as Roubini has consistently warned, is the banks’ dependence on short-term financing to maintain their long-term asset leverage and run their businesses.
What killed MF Global, Lehman Brothers, Bear Stearns, AIG, and other huge financial firms, after all, was the sudden refusal of short-term lenders to continue lending money to the firms.”
Comments »Chart Lab Founder: S&P To Hit New Highs By Year End (video)
DICK bove: Banks Will Go Up, Market Will Follow
“Despite fears about the European contagion, the U.S. banks are through the crisis and will lead the market forward, Dick Bove, noted bank analyst and Vice President of Equity Research at Rochdale Securities, told Larry Kudlow Monday. And when you’re ready to buy, he’s got a few names for you.”
Comments »Toyota Scraps Forecasts as Thai Floods and Yen Exchange Losses Crush Earnings
Nygren: On a “Once-in-a-Generation” Opportunity
Lakshman Achuthan: Business Cycle Trends Still Forecasts Recession (video)
Black Rock’s Robert Kapito Suggests the Best Ways to Make Income
Upgrades and Downgrades This Morning
Upgrades
AYI – Acuity Brands coverage assumed with a Buy at ThinkEquity
HD – Home Depot upgraded to Outperform from Sector Perform at RBC Capital
CVS – CVS Caremark upgraded to Outperform from Sector Perform at RBC Capital
TOLL – Toll Brothers upgraded to Buy from Neutral at Citigroup
GRPN – Groupon initiated with a Buy at The Benchmark Company
PIR – Pier 1 Imports initiated with an Outperform at Wells Fargo
PAY – VeriFone initiated with a Buy at Citigroup
IACI – InterActiveCorp resumed with a Hold at Needham
WES – Western Gas Partners upgraded to Outperform from Neutral at Credit Suisse
LL – Lumber Liquidators upgraded to Buy from Neutral at Goldman
HERO – Hercules Offshore resumed with a Hold at Dahlman Rose
MYL – Mylan Labs initiated with a Market Perform at Leerink Swann
FLR – Fluor upgraded to Buy from Neutral at Lazard
UDR – UDR upgraded to Buy from Neutral at Janney Montgomery Scott
Downgrades
K – Kellogg downgraded to Market Perform from Outperform at William Blair
NEE – NextEra Energy downgraded to Hold from Buy at Jefferies
CLF – Cliffs Natural Resources target lowered to $115 at FBR Capital
ADM – Archer-Daniels initiated with a Neutral at Ticonderoga
FLT – FleetCor initiated with a Neutral at Citigroup
DHI – DR Horton downgraded to Neutral from Buy at Citigroup
APH – Amphenol downgraded to Sell at Ticonderoga
GRPN – Groupon initiated with a Neutral at Susquehanna
WXS – Wright Express initiated with a Neutral at Citigroup
AGU – Agrium target lowered to $109 at Ticonderoga
IBI – Interline Brands downgraded to Market Perform from Outperform at William Blair
CLC – CLARCOR downgraded to Hold from Buy at BB&T
VE – Veolia Environnement downgraded to Underweight from Neutral at JP Morgan
ALU – Alcatel-Lucent downgraded to Sell from Reduce at WestLB
SEB – Spectra Energy LP downgraded to Mkt Perform at Morgan Keegan
SD – SandRidge Energy downgraded to Equal Weight at boutique firm
MED – Medifast downgraded to Hold from Buy at Canaccord Genuity
SNN – Smith & Nephew downgraded to Neutral from Outperform at Credit Suisse
VRTX – Vertex Pharm downgraded to Sector Perform from Outperform at RBC Capital
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