Morning Coffee Pre-Market Wall Street News

U.S. Economy Adds 195,000 New Jobs. According to the U.S. Labor Department the economy added 195,000 new jobs in June. Wall Street economists were looking for only 166,000 new jobs to have been created in June. Private employers added 202,000 positions, while local, state and federal governments shed 7,000 workers. The Manufacturing sector which is a good barometer for the overall economy lost 6,000 jobs in June. While construction gained 13,000 new jobs.

Additionally, the unemployment rate held steady, but high at 7.6%, unchanged from May.  Two weeks ago, Fed Chairman Ben Bernanke said that he anticipated that the Fed’s current bond-buying program would begin to end when unemployment fell below 7%.

Upgrades:

Apache Corp (APA): Argus raised their rating from Hold to Buy and placed a target price of $95.00 on the company. Pre-market: 81.50 +1.27 (1.58%)

Buffalo Wild Wings (BWLD): Miller Tabak raised their rating from Hold to Buy and raised their target price from $99.00 to $117.00.

Pandora (P): HSBC raised their rating from Neutral to Overweight. Pre-market: 19.85 +0.42 (2.16%)

SABMiller (SBMRY): Societe Generale raised their rating from Hold to Buy.

Downgrades:

Mead Johnson Nutrition (MJN): Morgan Stanley lowered their rating from Overweight to Equal Weight and placed a target price of $76.00 on the company. Pre-market: 69.41 +0.56 (0.81%)

Markets: 
Futures at 7:55: Dow +0.97%. S&P +0.81%. Nasdaq +0.73%. Crude +0.52% to $101.75. Gold -1.13% to $1237.70. U.S. 10 Year -1 6/32 2.646%

Europe: London +0.27%. Paris -0.14%. Frankfurt -0.61%. 

Asia: Japan +2.08% to 14310. Hong Kong +1.89% to 20855. China +0.05% to 2007. India +0.44% to 19496.

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. 

Morning Coffee Pre-Market Wall Street News

EU Unemployment Hits Record High. Unemployment in the eurozone rose in April to a new high of 12.2% from 12.1% in March. The new number means that over 19.4 million people are unemployed. Inflation in the zone rose to an annual 1.4% in May up from 1.2% in April. The core CPI, which excluded food and energy rose more than economist had expected to 1.2% from 1%.

Netflix Added to Nasdaq 100. On June 6^th Netflix (NFLX) will be added to the Nasdaq 100 replacing Perrigo (PRGO). Shares of Netflix may rise as portfolio managers at the company to their index funds. NFLX Pre-market: 224.70 +2.04 (0.92%)

Upgrades

Canadian National Railway (CNI): JPMorgan raised their rating from Underweight to Neutral and raised their target price from $96.00 to $110.00.

Downgrades

Golar LNG Partners (GMLP): BMO Capital lowered their rating from Outperform to Sector Perform and placed a target price of $34.00 on the company.

Panera Bread (PNRA): Lazard Capital lowered their rating from Buy to Neutral. Pre-market: 191.74 -2.08 (-1.07%)

Scotts Miracle-Gro (SMG): BMO Capital lowered their rating from Market Perform to Underperform and placed a target price of $43.00 on the company.

Coverage Initiated

Boston Scientific (BSX): Wedbush initiated coverage with a Neutral rating and target price of $10.00.

Chesapeake Energy (CHK): Goldman Sachs initiated coverage with a Neutral rating and target price of $26.00. Pre-market: 22.76 +0.23 (1.02%)

CVS Caremark (CVS): Wells Fargo initiated coverage with an Outperform rating and target range of $68.00 - $72.00.

Express Scripts (ESRX): Wells Fargo initiated coverage with a Market Perform rating and target range of $64.00 - $69.00.

Jazz Pharma (JAZZ): Stifel initiated coverage with a Buy rating and target price of $80.00.

Medtronic (MDT): Wedbush initiated coverage with a Neutral rating and target price of $54.00.

St Jude Medical (STJ): Wedbush initiated coverage with an Outperform rating and target price of $57.00.

Tiffany & Co (TIF): Credit Suisse initiated coverage with an Outperform rating and target price of $89.00.

Coverage Reiterated/Price Target Changed

Guess? (GES): B. Riley & Co. reiterated their Neutral rating and raised their target price from $26.00 to $36.00. Pre-market: 31.53 +2.18 (7.43%)

Earning Reports

Guess? (GES): Reported EPS of $0.14 beating estimates by +$0.06. Pre-market: 31.53 +2.18 (7.43%)

Krispy  Kreme (KKD): Reported EPS of $0.20 beating estimates by +$0.04. Pre-market: 15.77 +1.51 (10.59%)

Lions Gate Entertainment (LGF): Reported EPS of $0.66 beating estimates by +$0.21. Pre-market: 29.10 +1.07 (3.82%)

OmniVision (OVTI): Reported EPS of $0.31 beating estimates by +$0.10. Pre-market: 18.60 +3.11 (20.08%)

Pall (PLL): Reported EPS of $0.74 beating estimates by +$0.01.

Markets: 

Futures at 7:33: Dow -0.50%. S&P -0.50%. Nasdaq -0.50%. Crude -0.78% to $92.89. Gold +0.13% to $1413.30.

Europe: London -0.91%. Paris -0.60%. Frankfurt -0.54%. 

Asia: Japan +1.37% to 13775. Hong Kong -0.41% to 22392. China -0.74% to 2301. India -2.25% to 19760. 

Morning Coffee Pre-Market Wall Street News

Shineway in Talks with Smithfield Foods. China based Shineway has been reported to be in talks with Smithfield Foods (SFD) to purchase the company in a deal worth $4.5-5 billion. The acquisition if completed would represent a 25-30% premium over Smithfield's close yesterday of $25.97. Pre-market: 32.34 +6.37 (24.53%)

Upgrades

Analog Devices (ADI): Citigroup raised their rating from Neutral to Buy and raised their target price from $48.00 to $54.00. Pre-market: 45.60 +0.12 (0.26%)

Microchip Tech (MCHP): Citigroup raised their rating from Neutral to Buy and raised their target price from $39.00 to $47.00.

Peugot SA (PEUGY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

Brocade (BRCD): Morgan Stanley lowered their rating from Equal Weight to Underweight and placed a target price of $4.50 on the company. Pre-market: 5.25 -0.13 (-2.42%)

Comerica (CMA): Wunderlich lowered their rating from Buy to Hold and placed a target price of $40.00 on the company.

Coverage Initiated

Flagstar Bancorp (FBC): BTIG initiated coverage with a Buy rating and target price of $18.00.

SeaWorld Entertainment (SEAS): Lazard Capital initiated coverage with a Neutral rating. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): Macquarie initiated coverage with an Outperform rating and target price of $44.00. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): KeyBank initiated coverage with a Buy rating and target price of $45.00. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): JPMorgan initiated coverage with a Neutral rating and target price of $41.00. Pre-market: 37.00 -0.71 (-1.88%)

Earning Reports

Bank of Montreal (BMO): Reported EPS of $1.46 missing estimates by -$0.04. Pre-market: 60.70 -0.51 (-0.83%)

Brown Shoes (BWS): Reported EPS of $0.32 beating estimates by +$0.10.

Chico's FAS (CHS): Reported EPS of $0.32 missing estimates by -$0.04. Pre-market: 18.18 -1.16 (-6.00%)

Movado Group (MOV): Reported EPS of $0.28 beating estimates by +$0.06.

Trina Solar (TSL): Reported EPS of -$0.90 missing estimates by -$0.16.

Wet Seal (WTSL): Reported EPS of $0.03 beating estimates by +$0.03. Pre-market: 4.66 +0.16 (3.56%)

Markets: 
Futures at 8:30: Dow -0.39%. S&P -0.54%. Nasdaq -0.45%. Crude -0.69% to $94.35. Gold +0.66% to $1388.10.

Europe: London -1.47%. Paris -1.22%. Frankfurt -1.42%. 

Asia: Japan +0.10% to 14326. Hong Kong -1.61% to 22555. China +0.12% to 2324. India -0.07% to 20148. 

Morning Coffee Pre-Market Wall Street News

Valeant to Purchase Bausch & Lomb. Bausch & Lomb which is currently owned by Warburg Pincus LLC will be purchased by Valeant (VRX) for $8.7B in cash, including $4.2B in debt. The Bausch & Lomb deal is the largest of 15 acquisitions for the Montreal-based company. In 2012 Bausch & Lomb generated $3 billion in sales from its contact lenses, eye-care solutions and prescription medicines.

Upgrades

Bayer AG (BAYRY): Jefferies raised their rating from Hold to Buy.

Eli Lilly (ELI): Jefferies raised their rating from Underperform to Hold and raised their target price from $44.00 to $49.00.

Expeditors International (EXPD): BB&T raised their rating from Hold to Buy and placed a target price of $50.00 on the company.

GlaxoSmithKline (GSK): Deutsche Bank raised their rating from Hold to Buy.

Merck & CO (MRK): Jefferies raised their rating from Hold to Buy and raised their target price from $48.00 to $54.00.

Novo Nordisk (NVO): Deutsche Bank raised their rating from Sell to Hold.

Texas Instruments (TXN): Drexel Hamilton raised their rating from Hold to Buy and raised their target price from $32.00 to $40.00.

Downgrades

Broadcom (BRCM): Susquehanna lowered their rating from Positive to Neutral and placed a target price of $39.00.

Lloyds Banking Group (LYG): Citigroup lowered their rating from Buy to Neutral.

Royal Bank of Scotland (RBS): Citigroup lowered their rating from Hold to Sell.

St. Jude Medical (STJ): Canaccord Genuity lowered their rating from Hold to Sell.

Coverage Initiated

Jabil Circuit (JBL): Standpoint Research initiated coverage with a Buy rating and target price of $28.00.

Earning Reports

Tiffany & Co (TIF): Reported EPS of $0.70 beating estimates by +$0.18.

Markets: 
Futures at 9:09: Dow +0.78%. S&P +0.81%. Nasdaq +0.93%. Crude +1.09% to $94.15. Gold -0.41% to $1381.10.

Europe: London +1.80%. Paris +1.46%. Frankfurt +1.22%. 

Asia: Japan +1.20% to 14312. Hong Kong +1.05% to 22924. China +1.23% to 2321. India +0.65% to 20161. 

Morning Coffee Pre-Market Wall Street News

Durable Goods Beats Forecast. Orders for U.S. durable goods increase more than economists had estimated in April. Bookings for equipment, meant to last more than three years rose 3.3%, while economists had expected an increase of only 1.6%.  This come on the heels of March’s revised -5.9% decline. Bookings for commercial aircraft climbed 18.1% last month after slumping 43% in March. Excluding transportation equipment, durable orders climbed 1.3%, which is the first gain in three months. Bookings for non-defense capital goods excluding aircraft increased 1.2% after a 0.9% in March.

Upgrades

Pandora Media (P): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $16.00 to $24.00. Pre-market: 19.07 +1.91 (11.13%)

Procter & Gamble (PG): UBS raised their rating from Neutral to Buy and raised their target price from $75.00 to $95.00. Pre-market: 81.65 +2.95 (3.75%)

Sherwin-Williams (SHW): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $180.00 to $205.00.

Wendy’s (WEN): Janney Capital raised their rating from Neutral to Buy. Pre-arket: 6.20 +0.20 (3.33%)

Downgrades

Cirrus Logic (CRUS): Canaccord lowered their rating from Buy to Hold and lowered their target price from $25.00 to $18.00. Pre-market: 17.86 +0.10 (0.56%)

rue21 (RUE): Janney Capital lowered their rating from Buy to Neutral and placed a target price of $42.00 on the company.

Saks (SKS): Argus lowered their rating from Buy to Hold.

Salesforce.com (CRM): Wedbush lowered their rating from Outperform to Neutral and lowered their target price from $51.00 to $42.00. Pre-market: 43.02 -2.67 (-5.84%)

Earning Reports

Abercrombie & Fitch (ANF): Reported EPS of -$0.09 missing estimates by -$0.04. Pre-market: 49.85 -4.52 (-8.31%)

Aeropostale (ARO): Reported EPS of -$0.16 beating estimates by +$0.01. Pre-market: 15.50 -0.98 (-5.95%)

Foot Locker (FL): Reported EPS of $0.91 beating estimates by +$0.03. Pre-market: 34.85 -0.83 (-2.33%)

Gap (GPS): Reported EPS of $0.71 beating estimates by +$0.02. Pre-market: 40.50 -0.86 (-2.08%)

Pandora Media (P): Reported EPS of -$0.10 in-line with estimates. Pre-market: 19.07 +1.91 (11.13%)

Ross Stores (ROST): Reported EPS of $1.07 in-line with estimates.

Salesforce.com (CRM): Reported EPS of $0.10 in-line with estimates. Pre-market: 43.02 -2.67 (-5.84%)

Sears Holdings (SHLD): Reported EPS of -$1.29 missing estimates by -$0.69. Pre-market: 48.95 -9.22 (-15.85%)

Williams-Sonoma (WSM): Reported EPS of $0.41 beating estimates by +$0.05.

Zumiez (ZUMZ): Reported EPS of $0.13 beating estimates by +$0.01.

Markets: 
Futures at 8:25: Dow -0.28%. S&P -0.40%. Nasdaq -0.46%. Crude -0.67% to $93.60. Gold +0.01% to $1392.10.

Europe: London -0.40%. Paris +0.34%. Frankfurt -0.23%. 

Asia: Japan +0.89% to 14612. Hong Kong -0.23% to 22619. China +0.57% to 2289. India +0.15% to 19704.