Morning Coffee Pre-Market Wall Street News

Inflation Rose Less Than Expected. The Labor Department reported this morning that inflation rose less than expected in August.  The CPI rose only +0.1% in August versus the +0.2% increase in July. The core CPI, which excludes food and energy rose +0.1%. Wall Street economist had expected a +0.2% for both the CPI and Core CPI numbers.

Upgrades:

American States Water (AWR): Brean Capital raised their rating from Hold to Buy and placed a target price of $28.00 on the company.

Broadcom (BRCM): Susquehanna raised their rating from Neutral to Positive and raised their target price from $33.00 to $35.00. Pre-market: 27.33 +0.42 (1.56%)

Delta Airlines (DAL): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $22.00 to $26.00. Pre-market: 23.64 +0.49 (2.12%)

FreightCar America (RAIL): Stephens raised their rating from Equal Weight to Overweight and raised their target price from $18.00 to $24.00. Pre-market: 19.96 +0.66 (3.42%)

Mead Johnson Nutrition (MJN): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $78.00 to $88.00. Pre-market: 76.11 0.00 (0.00%)

US Airways (LCC): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $18.00 to $26.00. Pre-market: 18.58 +0.51 (2.82%)

Verizon Communications (VZ): RBC Capital raised their rating from Sector Perform to Outperform and placed a target price of $54.00 on the company.

Downgrades:

Comstock Resources (CRK): Howard Weil lowered their rating from Sector Outperform to Sector Perform. Pre-market: 15.89 -0.12 (-0.75%)

ConAgra Foods (CAG): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $36.00 to $33.00.

Kellogg (K): JPMorgan lowered their rating from Neutral to Underweight and lowered their target price from $65.00 to $60.00.

Steven Madden (SHOO): Wedbush lowered their rating from Outperform to Neutral and maintained their target price of $55.00.

Coverage Initiated:

Angie’s List (ANGI): Telsey Advisory Group placed a target price of $29.00 on the company. Pre-market: 20.83 +0.59 (2.92%)

Perrigo (PRGO): CRT Capital initiated coverage with a Buy rating and target price of $145.00.

Earning Reports:

Coty (COTY): Reported EPS of $0.03 beating estimates by +$0.01.

FactSet Research (FDS): Reported EPS of $1.20 beating estimates by +$0.01. Pre-market: 111.00 -1.25 (-1.11%)

Markets: 
Futures at 8:20: Dow +0.05%. S&P +0.01%. Nasdaq +0.11%. Crude -0.43% to $106.12. Gold +0.10% to $1319.00. U.S. 10 Year +7/32 2.841%.

Europe: London -0.49%. Paris -0.23%. Frankfurt -0.21%. 

Asia: Japan -0.65% to 14312. Hong Kong -0.31% to 23181. China -2.05% to 2186. India +0.31% to 19804. 

Morning Coffee Pre-Market Wall Street News

U.S. Stock Futures Higher Ahead of FOMC Meeting. U.S. stock futures are higher before the opening as traders anxiously await the beginning of the FOMC meeting. The two day policy meeting is scheduled to begin today. Wall Street will be waiting for comments on the direction of the economy, interest rates and the potential winding down of the Fed’s bond buying program. Additionally, the inflation data of May is scheduled to be released today. Economists estimates are that the CPI rose +0.2% month-over-month after falling -0.4% in April, with the main driver of inflation being food and energy cost.

Upgrades:

Daimler AG (DDAIF): Natixis raised their rating from Hold to Buy.

Flir Systems (FLIR): Raymond James raised their rating from Market Perform to Strong Buy and placed a target price of $33.00 on the company.

Downgrades:

Charles River Labs (CRL): Goldman Sachs lowered their rating from Neutral to Sell. Pre-market: 42.40 -0.81 (-1.87%)

HSBC Holdings PLC (HBC): Citigroup lowered their rating from Buy to Neutral. Pre-market: 54.53 +0.74 (1.38%)

Williams Cos. (WMB): Goldman Sachs lowered their rating from Conviction Buy to Buy and placed a target price of $40.00 on the company. Pre-market: 33.00 -0.64 (-1.90%)

Coverage Initiated:

Huntington Ingalls (HII): Stifel initiated coverage with a Hold rating.

LinkedIn (LNKD): Pacific Crest initiated coverage with an Outperform rating and target price of $215.00. Pre-market: 179.21 +1.62 (0.91%)

T-Mobile U.S. (TMUS): Canaccord initiated coverage with a Hold rating and target price of $22.00.

Earning Reports:

FactSet (FDS): Reported EPS of $1.15 missing estimates by -$0.11. Pre-market: 99.01 -4.75 (-4.58%)

Korn/Ferry (KFY): Reported EPS of $0.32 beating estimates by +0.01.

Markets: 

Futures at 7:00: Dow +0.21%. S&P +0.09%. Nasdaq +0.35%. Crude -0.02% to $97.75. Gold -0.68% to $1373.90.

Europe: London +0.85%. Paris -0.05%. Frankfurt +0.05%. 

Asia: Japan -0.20% to 13007. Hong Kong 0.00% at 21226. China +0.14% to 2159. India -0.53% at 19223.