Morning Coffee Pre-Market Wall Street News

Boeing Deamliner Suffers More Problems. Problems with Boeings 787 Deamliners continue to mount. Two more Deamliners had issues. One suffered a oil leak in the engine bay while another had a cockpit window. The latest problems add to three earlier incidents this week, including a battery fire that filled one plane with smoke. The resent mishaps have caused the FAA to order a safety review on the planes. Pre-market: 75.68 -1.41 (-1.83%)

California Forecast Fiscal Surplus. For the first time in years California is forecasting that it will generate an $851 million surplus in the next fiscal year which begins on July 1. Governor Jerry Brown (D) released his budget yesterday which forecasts that general-fund revenue will rise +3.3% to $98.5 billion and spending to increase +5% to $97.7 billion. Governor Brown expects the state's cost cuts, tax rises and improving economy will be the main factors behind the surplus.

Upgrades

Ford Motor Co (F): Goldman Sachs raised their rating from Buy to Conviction Buy and raised their target price from $15.00 to $17.00.

Downgrades

Sherwin-Williams (SHW): Northcoast lowered their rating from Buy to Neutral.

Legg Mason (LM): Sandler O’Neill lowered their rating from Buy to Hold.

Herbalife (HLF): Janney Capital lowered their rating from Buy to Neutral. Pre-market: 39.26 +0.02 (0.05%)

Eaton Corp (ETN): Buckingham lowered their rating from Buy to Neutral and placed a target price of $58.00 on the company.

JC Penney (JCP): UBS lowered their rating from Neutral to Sell and lowered their target price from $21.00 to $13.00.

3M (MMM): JPMorgan lowered their rating from Neutral to Underweight and placed a target price of $97.00 on the company.

Watson Pharmaceutical (WPI): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $100.00 to $96.00.

Coverage Initiated

Ciena (CIEN): Maxim Group initiated coverage with a Buy rating and target price of $19.00. Pre-market: 15.02 -0.12 (-0.79%)

American International (AIG): FBR Capital initiated coverage with an Outperform rating and target price of $44.00. Pre-market: 35.83 +0.03 (0.08%)

AbbVie (ABBV): UBS initiated coverage with a Neutral rating and target price of $36.00. Pre-market: 33.75 -0.25 (-0.74%)

VeriSign (VRSN): B. Riley Caris initiated coverage with a Neutral rating and target price of $39.00.

Earning Reports

Wells Fargo (WFC): Reported EPS of $0.91 beating estimates by +$0.03. Pre-market: 34.84 -0.56 (-1.58%)

Markets: 
Futures at 8:34: Dow +0.02%. S&P +0.03%. Nasdaq +0.07%. Crude -0.48% to $93.36. Gold -0.23% to $1674.20.

Europe: London +0.18%. Paris -0.26%. Frankfurt +0.06%. 

Asia: Japan +1.40% to 10802. Hong Kong -0.39% to 23264. China -1.78% to 2243. India 0.00% at 19664.