Automatic Data Processing
Johnson & Johnson
The list included GE yesterday. Today GE's credit rating was downgraded by S&P. It is about time, the bonds have traded below AAA levels for at least a year. Once again the ratings agencies finally caught up to the market and announced what was already known to be fact. It seems like S&P finally capitulated along with everyone else.
The capitulation is a bullish sign. The market could retest the lows and perhaps go lower but I think this was another example of addressing a known issue and allowing the market to move forward.