The recent economic malaise has caused corporations to refinance debt rather than pay it off. Even larger cash flow positive companies have done the same. The only difference with larger companies is that they have cash on hand.
Yields are creeping up for corporations to access debt and junk bond have now topped 12%.
Comments »Out of 15 defaults 12 of those instances carried a B or better rating within a year of actual default. This rating only has a 2% probability of default.
What does this mean for the U.S. credit rating ?
Comments »Not only is input going up on raw materials, but now corporations have to deal with wage increases. Perhaps they will off shore somewhere away from China….
Comments »Upgrades
ORCL – Oracle upgraded to Buy from Outperform at Credit Agricole
EIX – Edison upgraded to Outperform from Neutral at Credit Suisse
JWN – Nordstrom upgraded to Buy at Stifel Nicolaus
WBSN – Websense downgraded to Hold at Stifel Nicolaus
CHKP – Check Point Software upgraded to Buy at Stifel Nicolaus
BUD – Anheuser-Busch InBev upgraded to Buy from Outperform at Credit Agricole
WY – Weyerhaeuser upgraded to Sector Perform at RBC Capital Mkts
BDX – Becton Dickinson upgraded to Outperform from Neutral at Mizuho
HPQ – Hewlett-Packard upgraded to Buy from Hold at Jefferies
ADSK – Autodesk ests and target lowered to $35 at RBC Capital Mkts
ATI – Allegheny Tech upgraded to Hold from Sell at Citigroup
ARG – Airgas upgraded to Buy from Neutral at Goldman
ADBE – Adobe Systems downgraded to Underperform at RBC Capital Mkts
COF – Capital One upgraded to Outperform at RBC Capital Mkts
HNR – Harvest Natural initiated with a Mkt Outperform at Rodman & Renshaw
PCX – Patriot Coal upgraded to Hold from Sell at Citigroup
PLL – Pall upgraded to Outperform at Wedbush
RIG – Transocean upgrade to Outperform from Market Peroform at Raymond James
FFIV – F5 Networks upgraded to Outperform from Market Perform at William Blair
CNQR – Concur Tech downgraded to Underperform at RBC Capital Mkts
DFS – Discover Financial Services upgraded to Top Pick at RBC Capital Mkts
Downgrades
ORCL – Oracle downgraded to Sector Perform at RBC Capital Mkts
DOW – Dow Chemical downgraded to Neutral from Buy at Goldman
TRH – Transatlantic Hldngs downgraded to Hold from Buy at Citigroup
CF – CF Industries downgraded to Neutral from Overweight at JP Morgan
EMN – Eastman Chem downgraded to Sell from Neutral at Goldman
AKAM – Akamai Tech downgraded to Market Perform from Outperform at Raymond James
IL – IntraLinks Holdings downgraded to Neutral at Credit Suisse
Comments »Gapping up
ADK +2.1%, TI +2%, E +1.8%, MDS +33.6%, UL +1.6%, EOG +1.5%, BCS +2.6%, SNY +2.3%, MBND +2.2%,RIO +1.3%, MNKD +17.3%, NVDA +11.9%, RRGB +10.1%, MCP +7.3%, BUD +4.8%, JWN +3.9%,
Gapping down
PAA -3.5%, ELX -3.4%, DV -8.8%, BODY -7.7%, CDTI -16.2%, TGB -2.2%, HBC -1.2%TFCO -14.5%, BYI -13.5%, QPSA -12.8%, RENN -11.6%,
We all know that short selling bans make markets more dysfunctional and tend to produce the opposite intended result.
Comments »China usually is a good indicator for the world economy. When their economy cools it usually signals recession for most developed nations.
Comments »Trading revenues for the first 6 months have already fallen by 13%. Volatility may also hurt earnings.
Comments »The theory goes that a stronger currency give China more buying power for products in G-7 nations.
Comments »(in a robots voice:) Humans are slow and illogical ! Computers will rule the world soon.
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