Morning Coffee Pre-Market Wall Street News

Dow Set to Continue Rally. The Dow Jones is pointing to a higher opening, continuing its rally from yesterday’s record high.  The Dow closed yesterday at 14246, up +0.83%, breaking the record high set in 2007. The record high also has S&P and NASDAQ futures looking at a higher opening. Rick Paler President of RL Paler Investment Advisors, LLC said “With the Eurozone economic data and the U.S. data both showing struggling economies, we believe that the new highs are based on the Fed and other central banks policies of cheep money.  The extremely low interest rate environment leaves stocks as the only alternative for decent returns.”

Upgrades

Best Buy (BBY): Jefferies raised their rating from Hold to Buy and raised their target price from $13.00 to $24.00. Pre-market: 19.04 +0.64 (3.48%)

Downgrades

Apple (AAPL): Berenberg Bank lowered their rating from Buy to Sell and lowered their target price from $800.00 to $360.00.

Discover Financial (DSF): Williams Blair raised their rating from Market Perform to Outperform.

JC Penney (JCP): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 14.69 -0.27 (-1.80%)

JC Penney (JCP): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $22.00 to $15.00. Pre-market: 14.69 -0.27 (-1.80%)

MasterCard (MA): Argus lowered their rating from Buy to Hold. Pre-market: 526.85 -0.25 (-0.05%)

Qualcomm (QCOM): Goldman Sachs lowered their rating from Conviction Buy to Buy and placed a target price of $80.00 on the company. Pre-market: 67.25 -0.72 (-1.06%)

Coverage Initiated

Bright Horizons (BFAM): Goldman Sachs initiated coverage with a Neutral rating and target price of $29.00.

Bright Horizons (BFAM): BMO Capital initiated coverage with a Market Perform rating and target price of $30.00.

Bright Horizons (BFAM): JPMorgan initiated coverage with a Neutral and target price of $30.00.

Bright Horizons (BFAM): Stifel Nicolaus initiated coverage with a Buy rating and target price of $33.00.

Bright Horizons (BFAM): Credit Suisse initiated coverage with an Outperform rating and target price of $35.00.

Bright Horizons (BFAM): RW Baird initiated coverage with a Neutral rating and target price of $30.00.

Bristol-Meyers Sqibb (BMY): William Blair initiated coverage with an Outperform rating. Pre-market: 37.59 +0.02 (0.05%)

Chico’s FAS (CHS): Maxim initiated coverage with a Buy rating and target price of $22.00.

Covidien (COV): Atlantic Equities initiated coverage with an Overweight rating and target price of $75.00.

FedEx (FDX): Oppenheimer initiated coverage with an Outperform rating and target price of $124.00. Pre-market: 108.50 +0.59 (0.55%)

UPS (UPS): Oppenheimer initiated coverage with an Outperform rating and target price of $95.00. Pre-market: 84.40 +0.33 (0.39%)

Earning Reports

Smith & Wesson (SWHC): Reported EPS of $0.26 beating estimates by +$0.02. Pre-market: 10.10 -0.12 (-1.17%)

American Eagle (AEO): Reported EPS of $0.55 missing estimates by -$0.01. Pre-market: 20.50 -2.05 (-9.09%)

Big Lots (BIG): Reported EPS of $2.09 beating estimates by +$0.10. Pre-market: 34.90 +1.01 (2.98%)

Staples (SPLS): Reported EPS of $0.46 beating estimates by +$0.01. Pre-market: 12.68 -0.61 (-4.59%)

Markets: 
Futures at 7:33: Dow +0.31%. S&P +0.37%. Nasdaq +0.34%. Crude -0.18% to $90.66. Gold +0.05% at $1575.60.

Europe: London +0.27%. Paris +0.19%. Frankfurt +1.02%. 

Asia: Japan +2.13% to 11932. Hong Kong +0.96% to 22778. China +0.90% to 2347. India +0.57% to 19253.