Morning Coffee Pre-Market Wall Street News

Nike Wants to Expand if Taxes Do Not Change. Reports say that Nike (NKE) is looking to significantly expand in Oregon. The expansion could add as many as 12,000 jobs directly and indirectly if the state government promises not to change the current tax code. The Oregon legislature is scheduled to hold a special session later this week to discuss the issue.

AbbVie Spinoff is Worth More Than Abbott. Abbott Laboratories' (ABT) AbbVie spin-off is worth more than Abbott.  The spinoff which is scheduled for January began trading yesterday as "When issued" in the secondary market.  The new Abbott is valued at $47.9 billion and AbbVie is valued at $55.3 billion. ABT Pre-market: 65.70 +0.37 (0.57%)

Upgrades

Monster Beverage (MNST): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $65.00 on the company. Pre-market: 54.30 +1.46 (2.76%)

Stryker (SYK): Goldman Sachs raised their rating from Neutral to Buy. Pre-market: 56.13 +1.34 (2.45%)

Dover (DOV): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $60.00 to $75.00.

Downgrades

Foster Wheeler (FWLT): Lazard Capital lowered their rating from Buy to Neutral.

Coverage Initiated

Colgate-Palmolive (CL): HSBC Securities initiated coverage with an Overweight rating.

Occidental Petroleum (OXY): Dahlman Rose initiated coverage with a Buy rating and placed a target price of $86.00 on the company.

Hess Corp. (HES): Dahlman Rose initiated coverage with a Hold rating. Pre-market: 50.00 -0.02 (-0.04%)

Gap (GPS): Goldman Sachs initiated coverage with a Buy rating and placed a target price of $41.00 on the company. Pre-market: 31.25 +0.36 (1.17%)

Tilly’s (TLYS): Goldman Sachs initiated coverage with a Buy rating and placed a target price of $18.00 on the company. Pre-market: 13.88 +0.46 (3.43%)

Aeropostale (ARO): Goldman Sachs initiated coverage with a Neutral rating and placed a target price of $14.00 on the company.

Coach (COH): Goldman Sachs initiated coverage with a Sell rating and placed a target price of $58.00 on the company. Pre-market: 56.00 -0.32 (-0.57%)

American Eagle (AEO): Goldman Sachs initiated coverage with a Neutral rating and placed a target price of $25.00 on the company.

Abercrombie & Fitch (ANF): Goldman Sachs initiated coverage with a Neutral rating and placed a target price of $54.00 on the company.

Earning Reports

Dollar General (DG): Reported EPS of $0.63 beating estimates by +$0.03. Pre-market: 45.71 -0.86 (-1.85%)

Markets: 
Futures at 7:25: Dow +0.26%. S&P +0.20%. Nasdaq +0.26%. Crude +0.60% to $86.07. Gold +0.02% to $1714.90.

Europe: London +0.12%. Paris +0.83%. Frankfurt +0.78%. 

Asia: Japan -0.09% to 9525. Hong Kong +0.21% to 22324. China -0.44% to 2075. India -0.12% at 19387. 

Morning Coffee Pre-Market Wall Street News

Hostess Bids Due Today. Today is the deadline for companies to submit bids for Hostess Brands. Analysts estimate the company’s brands could fetch $1 - $1.5 billion. Flowers Foods (FLO) is expected to be one of the companies interested in Hostess after the company expanded its credit facility last week.  Reports are that some of the major supermarket chains are also interested in Hostess.

Upgrades

Swift Transportation (SWFT): Dahlman Rose raised her rating from Hold to Buy and placed a target price of $12.00 on the company.

Swift Transportation (SWFT): Wunderlich raised her rating from Hold to Buy.

Noble Energy (NBL): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $112.00 to $120.00.

Noble Energy (NBL): Global Hunter raised their rating from Accumulate to Buy and raised their target price from $106.00 to $115.00.

Anadarko Petro (APC): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $103.00 to $105.00.

Forest Labs (FRX): Cowen raised their rating from Neutral to Outperform.

Abercrombie & Fitch (ANF): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $48.00 to $55.00.

Downgrades

Noble Energy (NBL): Sterne Agee lowered their rating from Buy to Neutral.

United States Steel (X): Longbow lowered their rating from Neutral to Underperform and placed a target price of $17.00 on the company. Pre-market: 21.48 -0.29 (-1.33%)

Coverage Initiated

Teradyne (TER): Needham initiated coverage with a Buy rating and target price of $20.00.

Markets: 
Futures at 8:04: Dow -0.07%. S&P -0.13%. Nasdaq -0.22%. Crude +0.81% to $86.63. Gold +0.50% to $1714.10.

Europe: London -0.08%. Paris -0.19%. Frankfurt -0.31%. 

Asia: Japan +0.07% to 9534. Hong Kong +0.39% to 22277. China +1.07% to 2084. India -0.07% to 19410. 

Morning Coffee Pre-Market Wall Street News

November Nonfarm Payrolls Expected to Decline. Employment data for November will be released this morning and economists expect payrolls to decline. Economists expect that only 85,000 nonfarm payrolls where created in November versus the 171,000 in October. The unemployment rate is expected to remain the same at 7.9%.

Downgrades

Prudential Financial (PRU): Sandler O’Neill lowered their rating from Buy to Hold. Pre-market: 52.85 +0.22 (0.42%)

Toronto Dominion Bank (TD): Scotia Capital lowered their rating from Outperform to Sector Perform. Pre-market: 82.19 +0.32 (0.39%)

Coverage Initiated

Bed Bath & Beyond (BBBY): Standpoint Research initiated coverage with a Buy rating and target price of $70.00. Pre-market: 58.21 +0.34 (0.59%)

Microchip (MCHP): Needham initiated coverage with a Buy rating and target price of $37.00.

PulteGroup (PHM): Topeka initiated coverage with a Buy rating. Pre-market: 16.27 -0.01 (-0.06%)

Toll Brothers (TOL): Topeka initiated coverage with a Hold rating.

KB Homes (KBH): Topeka initiated coverage with a Hold rating. Pre-market: 14.22 +0.05 (0.35%)

Lennar (LEN): Topeka initiated coverage with a Hold rating and target price of $33.00. Pre-market: 36.75 +0.46 (1.27%)

D.R. Horton (DHI): Topeka initiated coverage with a Hold rating. Pre-market: 18.91 +0.22 (1.18%)

Earning Reports

Smith & Wesson (SWHC): Reported EPS of $0.24 in-line with estimates. Pre-market: 11.27 +0.42 (3.87%)

Esterline Techs (ESL): Reported EPS of $1.97 beating estimates by +$0.41. Pre-market: 61.15 +0.50 (0.82%)

Markets: 
Futures at 8:32: Dow +0.51%. S&P +0.58%. Nasdaq +0.54%. Crude -0.02% to $86.23. Gold -0.14% to $1699.40.

Europe: London +0.28%. Paris +0.45%. Frankfurt +0.14%. 

Asia: Japan -0.19% to 9527. Hong Kong -0.26% to 22191. China +1.60% to 2062. India -0.32% to 19424. 

Morning Coffee Pre-Market Wall Street News

Call of Duty: Black Ops II sales Top $1 billion. Activision Blizzard (ATVI) is reporting that sales of "Call of Duty: Black Ops II" topped $1billion in the first 15 days of its release. Activision CEO Bobby Kotick said that the "Call of Duty" has now generated more revenues than cinema sales of the "Harry Potter" and "Star Wars" series. Pre-Market: 11.25 +0.02 (0.18%)

Upgrades

Canadian Pacific (CP): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $138.00 on the company. Pre-market: 57.12 -0.38 (-0.66%)

Chevron (CVX): Dahlman Rose raised their rating from Hold to Buy. Pre-market: 105.47 +0.30 (0.29%)

Starbucks (SBUX): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $55.00 to $62.00. Pre-market: 51.50 +0.71 (1.40%)

Downgrades

AutoZone (AZO): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $460.00 to $400.00.

Netflix (NFLX): Caris lowered their rating from Average to Below Average and placed a target price of $60.00 on the company. Pre-market: 81.90 -1.47 (-1.76%)

Earning Reports

Mens Warehouse (MW): Reported EPS of $0.95 missing estimates by -$0.03. Pre-market: 28.10 -3.25 (-10.37%)

Synopsys (SNPS): Reported EPS in-line with estimates.

H&R Block (HRB): Reported EPS of -0.37 beating estimates by +$0.03.

Smithfield Foods (SFD): Reported EPS of $0.61 beating estimates by +$0.18. Pre-market: 23.39 +0.49 (2.14%)

Toronto-Dominion Bank (TD): Reported EPS of $1.83 beating estimates by +$0.01.

Markets: 
Futures at 8:00: Dow 0.00%. S&P -0.09%. Nasdaq -0.09%. Crude -0.41% to $87.52 Gold -0.04% to $1693.20.

Europe: London +0.35%. Paris +0.15%. Frankfurt +0.91%. 

Asia: Japan +0.81% to 9545. Hong Kong -0.09% to 22250. China -0.13% to 2029. India +0.49% to 19487. 

Morning Coffee Pre-Market Wall Street News

Facebook to be added to NASDAQ 100. The social media site Facebook (FB) will be added to the NASDAQ 100 index next Wednesday. The company will replace Infosys (INFY), which is moving to the NYSE. FB Pre-market: 27.88 +0.42 (1.53%) INFY Pre-market: 43.71 -0.32 (-0.73%)

Upgrades

Tupperware (TUP): Argus raised their rating from Hold to Buy and placed a target price of $72.00 on the company.

American International (AIG): Argus raised their rating from Hold to Buy and placed a target price of $40.00 on the company. Pre-market: 33.63 +0.31 (0.93%)

Bob Evens Farms (BOBE): KeyBanc raised their rating from Hold to Buy and placed a target price of $45.00 on the company.

Waste Management (WM): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $33.00 to $42.00. Pre-market: 33.23 +0.60 (1.84%)

PNC Financial (PNC): Compass Point raised their rating from Neutral to Buy. Pre-market: 55.40 +0.32 (0.58%)

Downgrades

NVIDIA (NVDA): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 11.90 -0.20 (-1.61%)

Liberty Media (LMCA): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $117.00 to $110.00.

Intel (INTC): Raymond James lowered their rating from Market Perform to Underperform. Pre-market: 19.91 -0.06 (-0.30%)

Coverage Initiated

Honeywell (HON): Stifel Nicolaus initiated coverage with a Buy rating and target price of $72.00. Pre-market: 60.65 +0.13 (0.21%)

Cummins (CMI): Robert W. Baird initiated coverage with an Outperform rating and target price of $119.00. Pre-market: 98.73 +1.42 (1.46%)

United Technologies (UTX): Goldman Sachs initiated coverage with a Neutral rating and target price of $84.00.

Earning Reports

Pandora Media (P): Reported EPS of $0.05 beating estimates by +$0.04. Pre-market: 7.97 -1.48 (-15.66%)

Brown-Forman (BF.B): Reported EPS of $0.80 beating estimates by +$0.02.

Toro (TTC): Reported EPS of $0.00 beating estimates by +$0.01.

Markets: 
Futures at 7:45: Dow +0.43%. S&P +0.21%. Nasdaq +0.04%. Crude +0.11% to $88.60. Gold +0.37% to $1702.

Europe: London +0.18%. Paris +0.26%. Frankfurt +0.20%. 

Asia: Japan +0.39%. Hong Kong +2.16%. China +2.87%. India +0.23%. 

A free and open world depends on a free and open web.

“A free and open world depends on a free and open Internet. Governments alone, working behind closed doors, should not direct its future. The billions of people around the globe who use the Internet should have a voice.”

Morning Coffee Pre-Market Wall Street News

Qualcomm to Invest in Sharp. Reports say that Qualcomm (QCOM) will invest into troubled Sharp (SHCAY). Qualcomm will invest $120 million with an initial ¥4.93B ($59.9M) by the end of the year. The initial investment represents a 2.6% stake in Sharp, while the remainder will be invested by March. The companies will jointly develop new displays based on Sharp's IGZO technology. QCOM Pre-market: 63.30 -0.07 (-0.11%)

Upgrades

Public Storage (PSA): Cantor Fitzgerald raised their rating from Hold to Buy and raised their target price from $143.50 to $160.00.

Whole Foods Market (WFM): Northcoast raised their rating from Neutral to Buy. Pre-market: 91.90 -0.51 (-0.56%)

Smithfield Foods (SFD): BB&T raised their rating Hold to Buy and placed a target price of $28.00 on the company.

Downgrades

Cott (COT): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Initiated

Caribou Coffee (CBOU): Longbow initiated coverage with a Buy rating and target price of $17.00.

Royal Bank of Canada (RY): Citigroup initiated coverage with a Buy rating and target price of $67.00.

Flowserve (FLS): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $160.00.

Corning (GLW): Bernstein initiated coverage with an Outperform rating and target price of $15.20. Pre-market: 12.23 +0.08 (0.66%)

Tree House Foods (THS): Longbow initiated coverage with a Buy rating and target price of $63.00.

Earning Reports

Pep Boys (PBY): Reported EPS of -$0.13 missing estimates by -$0.28. Pre-market: 9.92 -0.76 (-7.12%)

AutoZone (AZO): Reported EPS of $5.41 beating estimates by +0.06. Pre-market: 373.84 -4.17 (-1.10%)

Big Lots (BIG): Reported EPS of -$0.10 beating estimates by +0.15. Pre-market: 30.20 +2.16 (7.70%)

Toll Brothers (TOL): Reported EPS of $0.35 beating estimates by +0.10. Pre-market: 33.75 +1.32 (4.07%)

Vail Resorts (MTN): Reported EPS of -$1.70 missing estimates by -$0.11. Pre-market: 51.75 -4.09 (-7.32%)

Markets: 
Futures at 7:28: Dow +0.08%. S&P +0.12%. Nasdaq +0.11%. Crude -1.12% to $88.09. Gold -1.07% to $1702.60.

Europe: London +0.02%. Paris +0.71%. Frankfurt +0.26%. 

Asia: Japan -0.27% to 9432. Hong Kong +0.15% to 21800. China +0.78% to 1975. India +0.22% to 19348.