MORNING COFFEE

Microsoft Mobile 8 gains traction. Microsoft (MSFT) seems to be gaining traction within the industry after getting positive reviews of its new mobile OS Windows Phone 8.  AT&T (T), T-Mobile (DTEGF), and Verizon (VZ) will support the new OS. Additionally manufactures Huawei, HTC, Nokia (NOK) and Samsung (SSNFL) will produce new phone using the Windows Phone 8 OS. The questions remain whether consumers will leave their iPhones and Droids for a Windows phone. Pre-market: 30.97 +0.04 (0.13%)

Upgrades

Xylem (XYL): Janney Capital raised their rating from Neutral to Buy and placed a target price of $32.00 on the company.

TJX Cos. (TJX): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $42.00-$45.00 to $48.00-$51.00. Pre-market: 43.51 +0.40 (0.93%)

Coverage Initiated

Automatic Data Processing (ADP): Susquehanna initiated coverage with a Positive rating and target price of $67.00.

Facebook (FB): Argus initiated coverage with a Hold rating. Pre-market: 31.60 0.00 (0.00%)

National Oilwell (NOV): HSBC Securities initiated coverage with an Overweight rating and target price of $97.00. Pre-market: 67.10 +0.05 (0.07%)

Southwest Air (LUV): Imperial Capital initiated coverage with an In-line rating and target price of $10.00. Pre-market: 9.39 +0.08 (0.86%)

Invesco (IVZ): Argus initiated coverage with a Buy rating and target price of $28.00.

Downgrades

Zumiez (ZUMZ): Roth Capital lowered their rating from Buy to Neutral and placed a target price of $44.00 on the company.

Under Armour (AU): UBS lowered their rating from Buy to Neutral and placed a target price of $105.00 on the company. Pre-market: 102.00 -3.18 (-3.02%)

Quicksilver (ZQK): Roth Capital lowered their rating from Buy to Neutral and placed a target price of $3.00 on the company.

Earning Reports

Bed Bath & Beyond (BBBY): Reported EPS of $0.89 beating estimates by +$0.05. Pre-market: 65.75 -7.92 (-10.75%)

Micron (MU): Reported EPS of -$0.32 missing estimates by -$0.12. Pre-market: 6.02 -0.10 (-1.63%)

CarMax (KMX): Reported EPS of $0.52 missing estimates by $0.01. After Hours: 28.00 +0.10 (0.36%)

ConAgra (CAG): Reported EPS of $0.51 beating estimates by $0.01. Pre-market: 24.88 +0.28 (1.14%)

Rite Aid (RAD): Reported EPS 0f -$0.03 in-line with estimates. Pre-market: 1.23 +0.06 (5.13%)

Markets: 
Futures at 7:36: Dow +0.02%. S&P +0.06%. Nasdaq -0.02%. Crude -0.72% to $80.86. Gold -1.11% to $1597.90.

Europe: London -0.36%. Paris +0.10%. Frankfurt +0.20%. 

Asia: Japan +0.82%. Hong Kong -1.30%. China -1.40%. India +0.80%.