MORNING COFFEE

Eurozone Still Struggling. The Eurozone PMI for September came in at just 46.1, up from August's 45.1. While the number is better than the previous months any number below 50 indicates contraction in the economy. This was the 14th consecutive month of contraction. France saw its PMI fall to a 41-month low of 42.7, just slightly higher than Greece. Germany and Spain, saw their PMI rise to 6-month highs of 47.4 and 44.5, respectively.

Unemployment in the Eurozone came in at a very high 11.4% in August (June and July were revised higher to 11.4% as well), this was the highest unemployment rate since the data series began in 1995.

Upgrades

Duke Energy (DUK): Argus raised their rating from Hold to Buy and placed a target price of $72.00 on the company. Pre-market: 65.11 +0.32 (0.49%)

Allscripts-Misys Healthcare (MDRX): Cowen & Co. raised their rating from Neutral to Outperform. Pre-market: 12.83 +0.41 (3.30%)

Allscripts-Misys Healthcare (MDRX): Isis Group raised their rating from Hold to Buy and raised their target price from $11.50 to $14.50. Pre-market: 12.83 +0.41 (3.30%)

Downgrades

Microsoft (MSFT): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $34.00 to $33.00.

Boston Beer Co. (SAM): UBS lowered their rating from Neutral to Sell and lowered their target price from $103.00 to $96.00.

Allstate (ALL): FBR Capital lowered their rating from Outperform to Market Perform and placed a target price of $40.00 on the company.

Owens Corning (OC): Longbow lowered their rating from Buy to Neutral.

VMware (VMW): RBC Capital lowered their rating from Outperform to Market Perform and lowered their target price from $115.00 to $100.00.

Emerson Electric (EMR): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $48.00 on the company.

Nokia (NOK): Credit Suisse lowered their rating from Neutral to Underperform.

Coverage Initiated

Kraft Foods Group (KRFT): Goldman Sachs initiated coverage with a Neutral rating and target price of $48.00 on the company.

Kraft Foods Group (KRFT): JPMorgan initiated coverage with a Neutral rating and target price of $47.00 on the company.

Citigroup (C): Guggenheim initiated coverage with a Buy rating and target price of $45.00.

Markets: 
Futures at 8:40: Dow +0.55%. S&P +0.47%. Nasdaq +0.61%. Crude -0.16% to $92.04. Gold +0.29% at $1779.00.

Europe: London +1.20%. Paris +1.72%. Frankfurt +1.33%. 

Asia: Japan -0.83% to 8797. Hong Kong closed. China closed. India +0.33% to 18827.