UBS DOWNGRADES AMR CORP FROM NEUTRAL TO BUY

Shares of American Airlines parent AMR Corp fell over 3% on the news that UBS downgraded the carrier to “neutral” from “buy” rating. The investment bank says the company’s battle to cut distribution costs with online travel agencies could hurt profits. “Although we applaud AMR in its efforts to reduce distribution costs, particularly through online travel agency channels, this negotiation is very likely to hurt near-term earnings,” UBS analyst Kevin Crissey said in a note to clients yesterday. Shares of AMR fell 3.5% at $8.48 in late morning trading on Tuesday.  Its rival also experienced a drop however, with Delta