MORNING COFFEE

Germany is preparing for EU defaults. Reports from Europe say that Germany is preparing for defaults and bankruptcy of large EU countries. The news came from a leaked document from the country's foreign ministry. EU officials are also planning for a European Monetary Fund that would take countries into receivership and run their economies.

Upgrades

Hewlett-Packard (HPQ): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $34.00 on the company.

Coverage Initiated

Coca-Cola (KO): Jefferies initiated coverage with a Buy rating.

PepsiCo (PEP): Jefferies initiated coverage with a Hold rating.

Cree (CREE): Goldman Sachs initiated coverage with a Buy rating and a target price of $40.00 on the company.

Earning Reports

Dole Food (DOLE): Reported EPS of -$0.17 missing estimates by -$0.09.

Foot Locker (FL): Reported EPS of $0.43 beating estimates by +$0.04.

Salesforce.com (CRM): Reported EPS of $0.34 beating estimates by +$0.03.

HJ Heinz (HNZ): Reported EPS of $0.81 beating estimates by +$0.01.

Markets: 
Futures at 7:00: Dow +0.6%. S&P +0.7%. Nasdaq +0.5%. Crude +0.3% to $99.09. Gold +0.5% to $1728.20. 

Europe: London -0.7%. Paris -0.3%. Frankfurt -0.2%. 

Asia: Japan -1.2% to 8375. Hong Kong -1.7% to 18491. China -1.9% to 2417. India -0.6% to 16372.