Morning Coffee Pre-Market Wall Street News

Bonds Continue to See Massive Outflows. According to a report from TrimTabs outflows from U.S. bond mutual funds and ETFs have risen to $19.7B so far in August. So far this month’s number is the fourth-highest outflow on record and up from $14.8B in July. Since the beginning of June, $103.5B or 2.7% of the total assets invested in bond funds have left the asset class. The mass exodus can be directly tired to fears of the Fed ending its stimulus program which has sent yields higher. This morning the U.S. 10 Year stands at 2.843% its highest yield in over two years. U.S. 10 Year -4/32 2.843%

Upgrades:

American Midstream Partners (AMID): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $19.00-$21.00 to $23.00-$25.00.

Dollar General (DG): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $51.00 to $64.00.

Intel (INTC): Piper Jaffray raised their rating from Underweight to Neutral and raised their target price from $20.00 to $22.00. Pre-market: 22.03 +0.11 (0.52%)

Kaiser Aluminum (KALU): Sterne Agee raised their rating from Neutral to Buy.

Orbital Sciences (ORB): ReserchTeam raised their rating from Reduce to Hold.

Public Storage (PSA): RBC Capital raised their rating from Underperform to Sector Perform and raised their target price from $158.00 to $160.00.

Pulte Group (PHM): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $15.50-$16.50 to $19.00-$20.00. Pre-market: 16.49 +0.21 (1.29%)

Ross Stores (ROST): Morgan Stanley raised their rating from Equal Weight to Overweight and placed a target price of $77.00 on the company. Pre-market: 66.00 +1.24 (1.91%)

Downgrades:

Abbott (ABT): ResearchTeam lowered their rating from Hold to Reduce.

Foot Locker (FL): ResearchTeam lowered their rating from Hold to Reduce.

TRW Automotive (TRW): ResearchTeam lowered their rating from Accumulate to Hold.

Union Pacific (UNP): ResearchTeam lowered their rating from Hold to Reduce.

Coverage Initiated:

Lumber Liquidators (LL): Jefferies initiated coverage with a Buy rating and target price of $115.00.

Earning Reports:

Saks (SKS): Reported EPS of -0.10 missing estimates by -$0.02. Pre-market: 16.00 -0.02 (-0.12%)

Markets:

Futures at 7:28: Dow -0.03%. S&P -0.08%. Nasdaq +0.04%. Crude -0.10% to $107.06. Gold +0.08% to $1372.20. U.S. 10 Year -4/32 2.843%

Europe: London -0.45%. Paris -0.87%. Frankfurt -0.30%. 

Asia: Japan +0.79% to 13758. Hong Kong -0.24% to 22464. China +0.83% to 2086. India -1.56% to 18266. 

Morning Coffee Pre-Market Wall Street News

Record Outflows from Bond Funds. According to TrimTabs a record $79.8B was pulled from exchange-traded and mutual funds in June. The amount of outflow from bonds was almost double the $41B withdrawn during the financial crisis in October 2008. Mutual funds saw a mass exodus of $70.8B and ETFs saw $9B withdrawn in June. Some on Wall Street believe the exodus could continue once investors receive their latest quarterly statements.

Upgrades:

Apple (AAPL): Raymond James raised their rating from Outperform to Strong Buy and maintained a target price of $600.00. Pre-market: 402.81 +6.28 (1.58%)

Big Lots (BIG): MKM Partners raised their rating from Neutral to Buy and placed a target price of $38.00 on the company.

Covance (CVD): Raymond James raised their rating from Market Perform to Strong Buy.

Intuit (INTU): Raymond James raised their rating from Market Perform to Strong Buy. Pre-market: 61.89 +0.85 (1.39%)

LG Display Co (LPL): Topeka raised their rating from Sell to Hold.

MGM Resorts (MGM): Janney Capital raised their rating from Neutral to Buy. Pre-market: 15.03 +0.25 (1.69%)

Tyco Intl (TYC): Morgan Stanley raised their rating from Equal Weight to Overweight and placed a target price of $39.00 on the company. Pre-market: 33.50 +0.55 (1.67%)

Downgrades:

3M (MMM): Morgan Stanley lowered their rating from Overweight to Equal Weight and placed a target price of $112.00 on the company. Pre-market: 108.28 -1.07 (-0.98%)

Coverage Initiated:

Express Scripts (ESRX): Monness Crespi initiated coverage with a Buy rating.

Kennametal (KMT): Goldman Sachs initiated coverage with a Neutral rating and target price of $43.00.

21^st Century Fox (FOXA): Evercore initiated coverage with an Overweight rating and target price of $34.00.

21^st Century Fox (FOXA): Wedbush initiated coverage with an Outperform rating and target price of $31.00.

21^st Century Fox (FOXA): Credit Suisse initiated coverage with an Outperform rating and target price of $34.00.

Markets: 
Futures at 8:27: Dow +0.55%. S&P +0.45%. Nasdaq +0.71%. Crude +1.00% to $97.54. Gold +2.12% to $1237.50. U.S. 10 yr -10/32 2.528%

Europe: London +0.86%. Paris +0.56%. Frankfurt +0.23%. 

Asia: Japan +1.28% to 13852.5. Hong Kong +1.78% to 20803. China +0.81% to 1995. India +0.94% to 19593.