Exxon (XOM) and AT&T (T) were downgraded by Wells Fargo and Deutsche Bank, respectively, today. The downgrades of the two members of the Dow Jones Industrial Average come during a week in which a number of other Dow components, including Coca-Cola (KO) and Goldman Sachs (GS), also saw their ratings cut by Wall Street research firms.

EXXON: Wells Fargo analyst Roger Read downgraded Exxon Mobil (XOM) to Market Perform from Outperform. Wells' updated commodity price, margin and production estimates were among the reasons cited by the analyst for the downgrade. Additionally, according to Read, the company's failure to carry out an acquisition during the recent oil price slump and its "premium valuation" make Exxon's shares less attractive. He cut his price target range on the stock to $87-$93 from $92-$100.

WHAT'S NOTABLE: The ratings action comes on the same day that former Exxon Mobil CEO Rex Tillerson is testifying before the Senate Foreign Relations Committee regarding his nomination to become Secretary of State in president-elect Donald Trump's administration. AT&T: The growth of AT&T's EPS is poised to slow, while its margins are weaker, wrote Deutsche Bank analyst Matthew Niknam, who downgraded the stock to Hold from Buy. In wireless, the company is facing increased competition from other carriers and cable companies that are poised to enter the business in the second half of this year, Niknam warned. "Market maturation" and Apple's (AAPL) iPhone 8, which is set to debut late this year, will also create headwinds for AT&T, according to the analyst. Moreover, AT&T's Entertainment unit, which accounts for about 33% of its revenue, is also facing significant competition and costs, wrote Niknam. Following reductions in the analyst's 2017 and 2018 estimates, his outlook for the company's results is 1% below that of the Street. He trimmed his price target on the shares to $43 from $44.

OTHER DOW DOWNGRADES: Earlier this week, analysts at Goldman Sachs downgraded Coca-Cola and Procter & Gamble (PG) to Sell form Hold, while Citi analysts cut Goldman Sachs to Sell from Neutral.

PRICE ACTION: In morning trading, Exxon shares rose 0.8% to $86.66, while AT&T slipped 0.7% to $40.53.