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Shares of Advanced Micro Devices Inc. tumbled 5.2% in morning trade Monday, to extend its plunge toward a 5-month low, after Morgan Stanley turned bearish on the chip maker again, citing concerns over valuation and that growth will slow. The stock has now plummeted 21.3% amid a four-session losing streak since AMD reported results last week. Analyst Joseph Moore cut his rating to underweight, after being at equal weight (EW) since he upgraded the stock from underweight on Dec. 14, 2016. Moore cut his stock price target to $8, which is 29% below current levels, from $11. “We have been somewhat cynical on the stock due to valuation, but above consensus on earnings which kept us at EW,” Moore wrote in a note to clients. He said the fundamental outlook is no longer as robust as before. “We expect cryptocurrency to gradually fade from here, consoles to decline, graphics to be flattish…,” Moore wrote. The stock as now shed 1.2% year to date, while the PHLX Semiconductor Index has soared 40% and the S&P 500 has gained 15%.

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Intel Corp.’s stock surged 1.2% in morning trade Monday, which puts the stock on track to close at a 17-year high, after the chip maker was upgraded at BMO Capital, which signs of improving execution and attractive valuation. Analyst Ambrish Srivastava raised his rating to outperform, after being at market perform since June 2015. He listed his stock price target to $58, which is about 18% above current levels, from $37. “The single biggest reason for our change in thinking is our belief that Intel is finally addressing a facet of the business model/company that we have struggled with in the past, i.e., lack of financial discipline, whether it comes to capital allocation, making acquisitions that have made little sense at least to us over the years, or simply keeping its operating model in check,” Srivastava wrote in a note to clients. “We find the stock attractively valued vs. our group, as well as more broadly.” The stock has climbed 24% year to date, while the PHLX Semiconductor Index has run up 40% and the S&P 500 has gained 15%.

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U.S. stock-market indexes opened lower on Monday, retreating from records set last week following a string of better-than-expected earnings from technology companies. The S&P 500 was off by 6 points, or 0.2%, to 2,574. The Dow Jones Industrial Average declined 90 points, or 0.4%, to 23,348. The tech-heavy Nasdaq Composite index fell 2 points, or less than 0.1%, to 6,698. Shares of CalAtlantic Group Inc. soared 24% after the home builder said it plans to merge with peer Lennar Corp. . Lennar shares were trading lower on the session.

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Texas-based bank CBTX Inc. disclosed terms of its proposed initial public offering, which could raise up to $62.4 million. The company said it was offering 2.4 million shares for sale to the public, with the IPO expected to price between $24 to $26 a share. If the underwriters exercise all the options to buy 360,000 additional shares, the company could raise up to $71.8 million. The company plans to use the proceeds to support growth and for general corporate purposes, including maintenance of required regulatory capital and potential acquisitions. The lead underwriters are Stephens Inc., Keefe, Bruyette & Woods and Sandler O’Neill & Partners. The company applied for the stock to be listed on the Nasdaq Global Market under the ticker symbol “CBTX.” The bank is going public at a time when the SPDR S&P Regional Banking ETF has rallied 6.9% over the past three months and the S&P 500 has gained 4.4%.

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Scholastic Corp. said Monday Chief Financial Officer Maureen O’Connell’s employment has been terminated, after nearly 11 years at the company. The children’s book publisher and distributor said it named Chief Accounting Officer Kenneth Cleary as CFO, effective Monday. O’Connell joined the company in January 2007. “This change did not arise from any issues involving the Company’s financial results, which are meeting our expectations, business practices, internal controls or financial reporting procedures,” said Chief Executive Richard Robinson. The stock, which was still inactive in premarket trade, has tumbled 19.7% year to date, while the S&P 500 has gained 15.3%.

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General Motor Co. shares slid 4% in premarket trade Monday, after Goldman Sachs downgraded the stock to sell from neutral, saying it expects the car maker’s earnings to take a downward turn in 2018. Analysts led by David Tamberrino said they are negative on the overall original equipment manufacturer sector, but are extra negative on GM. “Looking ahead into 2018 and given the current valuation level, we see a downward inflection in GM earnings and consequently downgrade shares to sell,” analysts wrote in a note. “We expect that a normalization in SAAR coupled with the company’s product launches in 2018 will weigh on GMNA profitability.” Goldman is expecting GM to see volume and mix headwinds in 2018 and expects 2018 EBIT-adjusted earnings to be down 22% and to shrink margins. Shares have gained 28% in 2017, while the S&P 500 has gained 15%.

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Shares of Neos Therapeutics Inc. sank 3.5% in premarket trade Monday, after the company said it rejected PDL BioPharma Inc.’s unsolicited buyout bid. The drug maker said PDL’s proposal to buy Neos for $10.25 a share, which was made public last week, was identical to the proposal made in June, July and September that have been rejected. “After a comprehensive review, conducted in consultation with its financial and legal advisors, the Neos board affirmed its previous determinations that PDL’s proposal undervalues Neos, does not reflect Neos’ strategic value and future prospects for continued growth and value creation, and is not in the best interests of the company or Neos shareholders,” Neos said in a statement. Neos’ stock had soared 72% year to date through Friday, while PDL shares had run up 44% and the S&P 500 had gained 15%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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General Motor Co. shares slid 3% in premarket trade Monday, after Goldman Sachs downgraded the stock to sell from neutral, saying it expects the car maker’s earnings to take a downward turn in 2018. Analysts led by David Tamberrino said they are negative on the overall original equipment manufacturer sector, but are extra negative on GM. “Looking ahead into 2018 and given the current valuation level, we see a downward inflection in GM earnings and consequently downgrade shares to sell,” analysts wrote in a note. “We expect that a normalization in SAAR coupled with the company’s product launches in 2018 will weigh on GMNA profitability.” Goldman is expecting GM to see volume and mix headwinds in 2018 and expects 2018 EBIT-adjusted earnings to be down 22% and to shrink margins. Shares have gained 28% in 2017, while the S&P 500 has gained 15%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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Paul Manafort and one of his former business associates were told to surrender to federal authorities on Monday, according to the New York Times. The Times said charges against Manafort, who was formerly President Donald Trump’s campaign chairman, and associate Rick Gates were not immediately clear. But they are the first charges in a special counsel investigation, the Times said.

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J.C. Penney Co. Inc. was downgraded to neutral from positive after the retailer announced a profit warning for the third quarter and full year. Its price target was lowered to $3 from $6.50. “While J.C. Penney is taking the right steps to fine-tune its footprint and merchandise mix and will continue to pay down debt with free cash flow, the sales-driving initiatives are taking longer than we expected to materialize,” wrote analysts led by Bill Dreher. Analysts say they “no longer have a constructive rating within the department store sector,” favoring Top Pick, Wal-Mart Stores Inc. . Citi also downgraded J.C. Penney, according to The Wall Street Journal. On Friday, J.C. Penney updated its guidance, saying its efforts to sell off “slow-moving” merchandise, particularly across women’s apparel, gave the company a sales books, but hurt cost of goods sold and earnings in the near-term. The announcement pulled down shares of other retailers, including Macy’s Inc. and Kohl’s Corp. . J.C. Penney shares are down 1.3% in Monday premarket trading, Macy’s shares are down 2.4% and Kohl’s shares are down 0.2%. J.C. Penney shares are down more than 63% for the last year while the S&P 500 index is up 21.4% for the period.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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