MORNING COFFEE

DOJ Investigates Wal-Mart. Reports out yesterday say that the DOJ has started a criminal probe of Wal-Mart (WMT) for allegations of bribery in Mexico. The U.S. Foreign Corrupt Practices Act bans companies from bribing foreign officials to win business. Pre-market: 59.45 -0.09 (-0.15%)

Upgrades

Michelin (MGDDY): HSBC Securities raised their rating from Neutral to Overweight.

Netflix (NFLX): Pacific Crest raised their rating from Sector Perform to Outperform and placed a target price of $130.00 on the company. Pre-market: 85.90 -15.94 (-15.65%)

Downgrades

Pep Boys (PBY): Argus lowered their rating from Hold to Sell. Pre-market: 14.91 -0.01 (-0.07%)

Charles Schwab (SCHW): Stifel Nicolaus lowered their rating from Buy to Hold. Pre-market: 13.61 -0.21 (-1.52%)

Big Lots! (BIG): Buckingham lowered their rating from Buy to Neutral. Pre-market: 37.41 -8.30 (-18.16%)

Big Lots! (BIG): Raymond James lowered their rating from Strong Buy to Market Perform. Pre-market: 37.41 -8.30 (-18.16%)

Big Lots! (BIG): MKM Partners lowered their rating from Buy to Neutral. Pre-market: 37.41 -8.30 (-18.16%)

Big Lots! (BIG): Deutsche Bank lowered their rating from Buy to Hold. Pre-market: 37.41 -8.30 (-18.16%)

Coverage Initiated

Viacom (VIA.B): Maxium initiated coverage with a Buy rating and target price of $59.00.

Earning Reports

Netflix (NFLX): Reported EPS of -$0.08 beating estimates by +$0.19. Pre-market: 85.90 -15.94 (-15.65%)

Texas Instruments (TXN): Reported EPS of $0.32 beating estimates by +$0.02. Pre-market: 32.95 +1.06 (3.32%)

3M (MMM): Reported EPS of $1.59 beating estimates by +$0.11. Pre-market: 89.45 +2.32 (2.66%)

AT&T (T): Reported EPS of $0.60 beating estimates by +$0.03. Pre-market: 31.20 +0.59 (1.93%)

Baker Hughes (BHI): Reported EPS of $0.86 beating estimates by +$0.06. Pre-market: 43.35 +2.28 (5.55%)

Coach (COH): Reported EPS of $0.77 beating estimates by +$0.02. Pre-market: 72.68 -2.44 (-3.25%)

Hershey Foods (HSY): Reported EPS of $0.96 beating estimates by +$0.15. Pre-market: 64.80 +2.51 (4.03%)

Novartis AG (NVS): Reported EPS of $1.27 missing estimates by -0.03. Pre-market: 54.83 -0.79 (-1.42%)

RadioShack (RSH): Reported EPS of -$0.06 missing estimates by -0.11. Pre-market: 5.30 -0.67 (-11.22%)

Ryder Systems (R): Reported EPS of $0.59 beating estimates by +$0.01.

U.S. Steel (X): Reported EPS of $0.67 beating estimates by +$0.21.

Markets: 
Futures at 9:05: Dow +0.09%. S&P +0.03%. Nasdaq -0.22%. Crude +0.30% at $103.40. Gold +0.64% to $1643.00. 

Europe: London +0.02%. Paris +0.82%. Frankfurt +0.06%. 

Asia: Japan -0.78%. Hong Kong +0.26%. China +0.01%. India +0.65%.