MORNING COFFEE

House Passes Deal to Raise Debt Limit. Despite opposition the House voted to increase the debt limit yesterday.  With no time to spare the Senate is expected to today approve the bill which will increase the debt ceiling by $2.4 trillion. The deadline for raising the debt limit is midnight tonight. But the U.S. is not out of the woods yet, if passed by the Senate the U.S. will overt a default, but the rating on the U.S. debt could still be lowered.  All three major rating agencies S&P, Moody’s and Fitch have said that the U.S.’s AAA rating could be lowered.  The rating agencies have said that substantial cuts in spending would have to coincide with any increase in the debt limit.

Upgrades

Southern (SO): Hilliard Lyons raised their rating from Neutral to Buy and placed a target price of $43.00 on the company. Pre-market: 39.65 -0.01 (-0.03%)

Las Vegas Sands (LVS): Argus raised their rating from Hold to Buy and placed a target price of $58.00 on the company. Pre-market: 47.56 -0.41 (-0.85%)

Downgrades

Teva Pharma (TEVA): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 44.00 +0.24 (0.55%)

Illinois Tool Works (ITW): ISI Group lowered their rating from Buy to Hold. Pre-market: 49.50 -0.40 (-0.80%)

Wal-Mart (WMT): Jefferies lowered their rating from Buy to Hold and lowered their target price from $61.00 to $56.00. Pre-market: 52.15 -0.47 (-0.89%)

Earning Reports

Archer-Daniels (ADM): Reported EPS of $0.58 missing estimates by -$0.25. Pre-market: 29.25 -1.23 (-4.04%)

Becton Dickinson (BDX): Reported EPS of $1.53 beating estimates by +$0.10. Pre-market: 83.20 +0.90 (1.09%)

Cognizant Tech (CTSH): Reported EPS of $0.67 beating estimates by +$0.01. Pre-market: 72.50 +1.81 (2.55%)

Emerson (EMR): Reported EPS of $0.90 missing estimates by -$0.01. After Hours: 48.00 -1.06 (-2.16%)

Molson Coors Brewing (TAP): Reported EPS of $1.23 missing estimates by -$0.06. Pre-market: 44.00 -0.63 (-1.41%)

Pfizer (PFE): Reported EPS of $0.60 beating estimates by +$0.01. Pre-market: 18.77 -0.24 (-1.26%)

Futures at 7:51: Dow -0.39%. S&P -0.52%. Nasdaq -0.49%. Crude -0.83% to $94.10. Gold +0.54% to $1630.50. 

Europe: London -0.55%. Paris -0.56%. Frankfurt -0.76%. 

Asia: Japan -1.20% to 9845. Hong Kong -1.07% to 22421. China -0.91% to 2679. India -1.12% to 18110.