MORNING COFFEE

U.S. Bank Exposure to GIIPS Exceeds $80B. According to a report in the New York Times five major banks have over $80 billion in exposure to EU GIIPS.  The banks holding the GIIPS include Bank of America (BAC), Citigroup (C), Goldman Sachs  (GS), JP Morgan (JPM), and Morgan Stanley (MS).

Upgrades

Saint Joe Co. (JOE): Raymond James raised their rating from Market Perform to Outperform. Pre-market: 16.50 -0.77 (-4.46%)

Citigroup (C): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $35.00 to $36.00. Pre-market: 30.51 -0.36 (-1.17%)

Microsoft (MSFT): Atlantic Securities raised their rating from Neutral to Overweight and raised their target price from $30.00 to $36.00. Pre-market: 29.01 -0.22 (-0.75%)

Downgrades

JP Morgan Chase (JPM): Goldman Sachs lowered their rating from Conviction Buy to Buy and lowered their target price from $42.00 to $41.00. Pre-market: 36.66 -0.55 (-1.48%)

Bank of America (BAC): Goldman Sachs lowered their rating from Buy to Neutral and placed a target price of $8.00 on the company. Pre-market: 7.13 -0.16 (-2.19%)

Kellogg Co (K): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $62.00 to $48.00. Pre-market: 49.03 -0.70 (-1.41%)

Proctor & Gamble (PG): UBS lowered their lowered their rating from Buy to Neutral and lowered their target price from $72.00 to $66.00. Pre-market: 63.82 -0.48 (-0.75%)

Proctor & Gamble (PG): BMO Capital lowered their lowered their rating from Overweight to Market Perform and placed a target price of $68.00 on the company. Pre-market: 63.82 -0.48 (-0.75%)

Coverage Reiterated/Price Target Changed

Proctor & Gamble (PG): Hilliard Lyons reiterated their Long-Term Buy rating and lowered their target price from $81.00 to $79.00. Pre-market: 63.82 -0.48 (-0.75%)

Earnings Reports

Koninklijke Philips Electronics (PHG): Reported EPS of -$0.17 missing estimates by $0.38. Pre-market: 19.84 -0.53 (-2.60%)

Wolverine (WWW): Reported EPS of $0.47 beating estimates by +$0.03.

Markets: 
Futures at 8:45: Dow -0.63%. S&P -0.86%. Nasdaq -0.78%. Crude -0.70% to $98.88. Gold -0.47% to $1724.20. 

Europe: London -1.07%. Paris -1.37%. Frankfurt -1.26%. 

Asia: Japan -0.54% to 8793. Hong Kong -1.66% to 20160. China -1.47% to 2285. India -2.14% to 16863.