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 The amount of outflow from bonds was almost double the $41B withdrawn during the financial crisis in October 2008. Mutual funds saw a mass exodus of $70.8B and ETFs saw $9B withdrawn in June.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. 

Morning Coffee Pre-Market Wall Street News

Oracle Misses Earnings, Shares Get Hammered. Oracle (ORCL) reported Q4 net profit rose 10% to $3.8B and adjusted EPS came in at $0.87 missing Wall Street estimates. Revenue at the company was flat at $10.9B. Some on Wall Street view the company as coming late to the “Cloud” and playing catch-up causing the pressure on earnings and organic growth. Additionally the company said that it would move from the NASDAQ to the NYSE on July 15^th. Once the move is completed Oracle will continue to trade under its current ticket symbol ORCL. Pre-market: 30.75 -2.46 (-7.41%)

Upgrades:

Bayer AG (BAYRY): Goldman Sachs raised their rating from Neutral to Buy.

Cardinal Health (CAH): William Blair raised their rating from Market Perform to Outperform. After Hours: 47.32 +0.25 (0.54%)

Facebook (FB): UBS raised their rating from Neutral to Buy and raised their target price from $28.00 to $30.00. Pre-market: 24.42 +0.52 (2.18%)

Forest Labs (FRX): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $40.00 to $50.00. Pre-market: 41.08 +0.89 (2.21%)

Kennametal (KMT): Barrington raised their rating from Market Perform to Outperform and placed a target price of $45.00 on the company.

Kimberly-Clark (KMB): BMO Capital raised their rating from Underperform to Market Perform and placed a target price of $96.00 on the company. After Hours: 95.00 +0.34 (0.36%)

NetGear (NTGR): Wedbush raised their rating from Neutral to Outperform and raised their target price from $32.00 to $38.00.

Southern Co (SO): Citigroup raised their rating from Neutral to Buy and maintained their target price of $51.00. Pre-market: 43.00 +0.52 (1.22%)

Streelcase (SCS): Longbow raised their rating from Neutral to Buy and placed a target price of $18.00 on the company.

Downgrades:

Diageo PLC (DEO): Santander lowered their rating from Buy to Hold. Pre-market: 115.78 +2.08 (1.83%)

ITT Educational (ESI): Argus lowered their rating from Hold to Sell. Pre-market: 24.85 -0.08 (-0.32%)

Newmont Mining (NEM): UBS lowered their rating from Buy to Neutral. Pre-market: 29.90 +0.15 (0.50%)

Coverage Initiated:

Burger King Worldwide (BKW): Wells Fargo initiated coverage with a Market Perform rating and target range of $21.00 - $22.00.

Wendy’s (WEN): Wells Fargo initiated coverage with a Market Perform rating and target range of $6.00 - $7.00.

Earning Reports:

CarMax (KMX): Reported EPS of $0.64 beating estimates by +$0.06. Pre-market: 45.24 +0.67 (1.50%)

Darden Restaurants (DRI): Reported EPS of $1.01 missing estimates by -$0.04. Pre-market: 51.00 -0.23 (-0.45%)

Oracle (ORCL): Reported EPS of $0.87 missing estimates by -$0.01. Pre-market: 30.75 -2.46 (-7.41%)

TIBCO Software (TIBX): Reported EPS of $0.18 in-line with estimates. Pre-market: 21.36 +0.35 (1.67%)

Markets: 

Futures at 7:00: Dow +0.63%. S&P +0.65%. Nasdaq +0.52%. Crude +0.36% to $95.49. Gold +0.45% to $1292.20.

Europe: London +0.87%. Paris +0.67%. Frankfurt +0.21%. 

Asia: Japan +1.66% to 13230. Hong Kong -0.59% to 20263. China -0.52% to 2073. India +0.29% at 18774.