U.S. Banks Must Raise Capital

U.S. Banks Must Raise Capital. The eight largest banks in the U.S. have to hold an additional $68B in capital to absorb future losses. U.S. regulators voted to raise the "leverage ratio" to 5-6% of their total assets which is above Basel III standard of 3%. The banks affected include Bank of America (BAC), Bank of New York Mellon (BK), Citigroup (C),  Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), State Street (ST), Wells Fargo (WFC). The banks will have until January 1, 2018 to comply.

Upgrades:

Alcoa (AA): Deutsche Bank raised their rating from Sell to Hold and placed a target price of $10.00 on the company. Pre-market: 13.01 +0.48 (3.83%)

Berkshire Hathaway (BRK.B): The ReasearchTeam raised their rating from Hold to Accumulate. Pre-market: 123.69 +0.56 (0.45%)

Nike (NKE): Stifel raised their rating from Hold to Buy and placed a target price of $87.00 on the company.

Downgrades:

Apache Corp. (APA): Deutsche Bank lowered their rating from Buy to Hold and placed a target price of $91.00 on the company. Pre-market: 84.70 -0.48 (-0.56%)

Arris Group (ARRS): The Street.com lowered their rating from Buy to Hold.

Credit Suisse (CS): JPMorgan lowered their rating from Neutral to Underweight. Pre-market: 32.27 -0.01 (-0.03%)

Cisco Systems (CSCO): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $25.00 to $24.00.

The Hershey Comp. (HSY): Goldman Sachs lowered their rating from Neutral to Sell and placed a target price of $70.00 on the company. Pre-market: 99.37 -2.35 (-2.31%)

Royal Caribbean (RCL): Pareto lowered their rating from Buy to Hold.

Coverage Initiated:

Ball Corp. (BLL): Credit Suisse initiated coverage with a Neutral rating and target price of $59.00.

Cabela’s (CAB): Credit Suisse initiated coverage with a Neutral rating and target price of $71.00.

CBS Corp. (CBS): JPMorgan initiated coverage with an Overweight rating.

General Motors (GM): JPMorgan initiated coverage with an Underweight rating and target price of $33.00. Pre-market: 33.94 -0.59 (-1.71%)

International Paper (IP): Credit Suisse initiated coverage with an Outperform rating and target price of $67.00.

Intuitive Surgical (ISRG): Sterne Agee initiated coverage with an Underperform rating and target price of $440.00. Pre-market: 438.76 -51.08 (-10.43%)

Kellogg Comp. (K): Nomura initiated coverage with a Buy rating and target price of $70.00.

Earning Reports:

Alcoa (AA): Reported EPS of $0.09 beating estimates by +$0.04. Pre-market: 13.01 +0.48 (3.83%)

Constellation Brands (STZ): Reported EPS of $0.81 beating estimates by +$0.05. Pre-market: 84.75 +3.27 (4.01%)

Progressive (PGR): Reported EPS of $0.54 beating estimates by +$0.15. Pre-market: 24.86 +0.70 (2.90%)

WD-40 (WDFC): Reported EPS of $0.67 missing estimates by -$0.01.

Markets: 
Futures at 8:41: Dow +0.35%. S&P +0.27%. Nasdaq +0.43%. Crude +0.13% to $102.69. Gold -0.37% to $1304.00. U.S. 10 Year -6/32 to 2.705%.

Europe: London +0.8%. Paris +0.4%. Frankfurt +0.4%. 

Asia: Japan -2.1% to 14300. Hong Kong +1.1% to 22843. China +0.3% to 2105. India +1.6% to 22702. 

#RLPaler #TopWealthManager #WallStreet #Stocks #EarningReports #AnalystsUpgradesDowngrades    

World Economic Growth Accelerating

World Economic Growth Accelerating. The World Bank announced that they expect global economic growth to accelerate to 3.2% in 2014 from 2.4% in 2013. The banks Global Economic Prospects report forecast that the U.S. economy will expand by 2.8% from 1.8% and goes on to say that the worlds advanced economies seem "to be finally turning the corner" following the financial crisis.

Upgrades:

Dick’s Sporting Goods (DKS): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $56.00 to $65.00.

Intel (INTC): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $21.00 to $31.00. Pre-market: 26.75 +0.24 (0.91%)

Western Digital (WDC): Pacific Crest raised their rating from Sector Perform to Outperform and placed a target price of $105.00 on the company. Pre-market: 88.70 +0.81 (0.92%)

Downgrades:

Airgas (ARG): Goldman Sachs lowered their rating from Neutral to Sell and placed a target price of $101.00 on the company.

Cirrus Logic (CRUS): Pacific Crest lowered their rating from Sector Perform to Underperform and placed a target price of $14.00 on the company. Pre-market: 19.30 -0.80 (-3.98%)

Dollar General (DG): S&P lowered their rating from 4 Stars to 2 Stars.

PETsMART (PETM): UBS lowered their rating from Buy to Neutral and lowered their target price from $82.00 to $72.00. Pre-market: 65.88 -1.22 (-1.82%)

Unilever (UN/UL): JPMorgan lowered their rating from Neutral to Underweight. Pre-market: 38.32 -0.73 (-1.87%) / Pre-market: 39.30 -0.66 (-1.65%)

Coverage Initiated:

FedEx (FDX): Susquehanna initiated coverage with a Neutral rating and target price of $150.00.

Morgan Stanley (MS): Keefe Bruyette initiated coverage with a Market Perform rating and target price of $34.00. Pre-market: 31.48 +0.38 (1.22%)

United Parcel Service (UPS): Susquehanna initiated coverage with a Neutral rating and target price of $107.00.

Earning Reports:

Bank of America (BAC): Reported EPS of $0.29 beating estimates by +$0.03. Pre-market: 17.16 +0.39 (2.33%)

Fastenal (FAST): Reported EPS of $0.33 missing estimates by -$0.01. After Hours: 48.49 +0.28 (0.58%)

Markets: 
Futures at 7:16: Dow +0.23%. S&P +0.20%. Nasdaq +0.34%. Crude +0.55% to $92.10. Gold -0.61% to $1237.80. U.S. 10 Year +1/32 to 2.868%.

Europe: London +0.40%. Paris +0.92%. Frankfurt +1.22%. 

Asia: Japan +2.50% to 15809. Hong Kong +0.49% to 22902. China -0.17% to 2023. India +1.22% to 21289. 

#RLPaler #WallStreet #PreMarket #WealthManagement #EarningReports #AnalystsRatings

Morning Coffee Pre-Market Wall Street News

Obama Delays Military Strike. In a televised speech last night President Obama has asked Congress to delay the vote on approving military strikes against Syria. Earlier in the week Sec. John Kerry floated an idea to have Syria give up their chemical weapon and Russia’s Vladimir Putin took the idea to Syria where their leaders agreed to the idea.  Many analysts are saying that all the delays have made the U.S. look weak and has allowed Syria to hide their chemical stock piles.  They are also questioning whether the agreement is just a stalling tactic similar to those being used by Iran to hide their nuclear weapons program.  

Upgrades:

ConAgra Food (CAG): Goldman Sachs raised their rating from Buy to Neutral and placed a target price of $42.00 on the company.

Ingersoll-Rand (IR): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $53.00 to $72.00. Pre-market: 64.90 +0.09 (0.14%)

Kennametal (KMT): Global Hunter raised their rating from Buy to Neutral and raised their target price from $37.00 to $55.00.

Morgan Stanley (MS): UBS raised their rating from Buy to Neutral and raised their target price from $28.00 to $33.00.

Nokia (NOK): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $5.00 to $7.00.

Revlon Inc. (REV): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $25.00 to $31.00.

RF Micro Devices (RFMD): Raymond James raised their rating from Market Perform to Strong Buy.

Skyworks Solutions (SWKS): Raymond James raised their rating from Outperform to Strong Buy.

Snap-On Tools (SNA): Janney Capital raised their rating from Neutral to Buy.

Downgrades:

Apple (AAPL): UBS lowered their rating from Buy to Neutral and lowered their target price from $560.00 to $520.00. Pre-market: 467.33 -27.31 (-5.52%)

Apple (AAPL): Credit Suisse lowered their rating from Outperform to Neutral and maintained their target price of $525.00. Pre-market: 467.33 -27.31 (-5.52%)

BlackRock (BLK): UBS lowered their rating from Buy to Neutral and lowered their target price from $310.00 to $280.00.

Lions Gate Entertainment (LGF): Cowen lowered their rating from Outperform to Market Perform and lowered their target price from $36.00 to $32.00.

Proctor Gamble (PG): SunTrust lowered their rating from Buy to Neutral and lowered their target price from $88.00 to $80.00.

Rockwell Automation (ROK): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $106.00 to $91.00. Pre-market: 103.55 -0.47 (-0.45%)

Take-Two Interactive (TTWO): Pacific Crest lowered their rating from Outperform to Sector Perform. Pre-market: 17.85 -0.29 (-1.60%)

Coverage Initiated:

W.P. Carey (WPC): BMO Capital initiated coverage with an Outperform rating and target price of $74.00.

Markets: 
Futures at 8:06: Dow +0.01%. S&P -0.07%. Nasdaq -0.38%. Crude -0.03% to $107.37. Gold -0.19% to $1361.40. U.S. 10 Year +7/32 2.946%

Europe: London -0.09%. Paris -0.10%. Frankfurt +0.55%. 

Asia: Japan +0.01% at 14425. Hong Kong -0.17% to 22937. China +0.15% to 2241. India +0.01% to 19997. 

Morning Coffee Pre-Market Wall Street News

Moody’s Warns of Possible Bank Downgrades. The rating agency Moody's (MCO) said that it has put several major U.S. Banks on review for possible downgrades. Banks that could receive credit downgrades include Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS) and Wells Fargo (WFC).

Upgrades:

First Solar (FSLR): Raymond James raised their rating from Underperform to Market Perform.

Toronto-Domino Bank (TD): Scotia Capital raised their rating from Sector Perform to Outperform.

Trina Solar (TSL): Raymond James raised their rating from Underperform to Market Perform.

VMware (VMW): Jefferies raised their rating from Hold to Buy and raised their target price from $86.00 to $105.00.

Downgrades:

Abercrombie & Fitch (ANF): RW Baird lowered their rating from Outperform to Neutral and lowered their target price from $59.00 to $42.00.

Aeropostale (AEO): Topeka lowered their rating from Buy to Hold.

Dick’s Sporting Goods (DKS): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $56.00 to $44.00.

Guess? Inc (GES): Piper Jaffray lowered their rating from Overweight to Neutral and lowered their target price from $35.00 to $31.00.

Pandora Media (P): Stifel lowered their rating from Buy to Hold.

Pandora Media (P): Raymond James lowered their rating from Outperform to Market Perform.

Staples (SPLS): Credit Suisse lowered their rating from Outperform to Neutral and lowered their target price to $15.00 on the company.

Coverage Initiated:

Ball Corp (BLL): Northcoast initiated coverage with a Neutral rating.

Chipotle Mexican Grill (CMG): Northcoast initiated coverage with a Sell rating and target price of $400.00.

Dean Foods (DF): Northcoast initiated coverage with a Neutral rating.

Dunkin Brands Group (DNKN): Northcoast initiated coverage with a Neutral rating.

Panera Bread Co (PNRA): Northcoast initiated coverage with a Buy rating and target price of $205.00.

Tim Hortons (THI): Northcoast initiated coverage with a Buy rating and target price of $72.00.

Earning Reports:

Aeropostale (AEO): Reported EPS of -$0.34 missing estimates by -$0.09.

Autodesk (ADSK): Reported EPS of $0.45 beating estimates by +$0.03.

Foot Locker (FL): Reported EPS of $0.46 missing estimates by -$0.01.

Gap (GPS): Reported EPS of $0.64 in-line with estimates.

Pandora Media (P): Reported EPS of $0.04 beating estimates by +$0.02.

Ross Stores (ROST): Reported EPS of $0.98 beating estimates by +$0.05.

Markets: 
Futures at 6:20: Dow -0.1%. S&P -0.1%. Nasdaq 0.0%. Crude +0.2% to $105.22. Gold +0.3% to $1374.90.

Europe: London +0.2%. Paris -0.5%. Frankfurt 0.0%. 

Asia: Japan +2.2% to 13661. Hong Kong -0.1% to 21864. China -0.5% to 2057. India +1.1% to 18519.