Morning Coffee Pre-Market Wall Street News

Detroit Fighting Takeover. The Detroit City Council has voted to appeal Gov. Rick Snyder's (R) decision putting the city in a “State of Emergency” and appointing an outside manager to run the city and clean up its finances. The Mayor Dave Bing (D), who is a former NBA star and owner of The Bing Group, said yesterday that he will not fight the appointment of an outside emergency manager to run the city. The Governor will now hold a hearing on Tuesday to decide whether or not to appoint the emergency manager. Over the years Detroit has seen its population decline from nearly 2 million to only 600,000 as people flee the vacant buildings, crime, failing schools and 29% unemployment.

Upgrades

Big Lots (BIG): Deutsche Bank raised their rating from Sell to Hold and raised their target price from $38.00 to $39.00. Pre-market: 35.75 -0.22 (-0.61%)

Petrobras (PBR): Credit Suisse raised their rating from Neutral to Outperform. Pre-market: 17.00 +0.32 (1.92%)

SAP AG (SAP): HSBC Securities raised their rating from Neutral to Overweight. Pre-market: 83.16 +0.47 (0.57%)

Downgrades

American Water Works (AWK): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $42.00 to $40.00. Pre-market: 39.67 -0.39 (-0.97%)

Big Lots (BIG): Raymond James lowered their rating from Market Perform to Underperform. Pre-market: 35.75 -0.22 (-0.61%)

Big Lots (BIG): Canaccord lowered their rating from Buy to Hold and raised their target price from $38.00 to $39.00. Pre-market: 35.75 -0.22 (-0.61%)

Daimler AG (DDAIIF): Citigroup lowered their rating from Buy to Neutral. After Hours: 60.64 0.00 (0.00%)

Quicksilver Resources (KWK): MLV & Co. lowered their rating from Buy to Hold. Pre-market: 1.68 +0.01 (0.60%)

Coverage Initiated

Altera (ALTR): Argus initiated coverage with a Hold rating. After Hours: 34.93 0.00 (0.00%)

Earning Reports

Korn Ferry (KFY): Reported EPS of $0.31 beating estimates by +$0.02.

PetSmart (PETM): Reported EPS of $1.24 beating estimates by +$0.03. Pre-market: 61.25 -5.30 (-7.96%)

Ciena (CIEN): Reported EPS of $0.12 beating estimates by +$0.26. Pre-market: 16.94 +2.00 (13.39%)

James River Coal (JRCC): Reported EPS of 0$1.59 missing estimates by +$0.20. After Hours: 2.55 0.00 (0.00%)

Navistar (NAV): Reported EPS of -$1.42 beating estimates by +$0.23. Pre-market: 26.00 +1.04 (4.17%)

Smithfield Foods (SFD): Reported EPS of $0.58 beating estimates by +$0.07. Pre-market: 23.80 +1.50 (6.73%)

Markets: 
Futures at 7:27: Dow +0.10%. S&P +0.07%. Nasdaq +0.13%. Crude +0.42% to $90.81. Gold +0.41% to $1581.50.

Europe: London +0.19%. Paris +0.35%. Frankfurt +0.14%. 

Asia: Japan +0.30% to 11968. Hong Kong -0.03% at 22771. China -0.98% to 2324. India +0.84% to 19414.