Morning Coffee Pre-Market Wall Street News

Apple Expected to Unveil iPad Mini. Apple (AAPL) is expected to unveil the iPad Mini today.  The iPad Mini could help the company with their push into education. The company has dedicated education sales teams, conducts meetings with school officials, provides financing for volume orders, and has a digital textbook initiative. Reports say the new iPad Mini will start at $329.00.  The pricing could become an issue, since Google’s similarly sized Nexus 7 is priced at only $199.00 and has received many industry accolades.

Upgrades

Public Storage (PSA): Cantor Fitzgerald raised their rating from Sell to Hold and placed a target price of $143.50 on the company.

Yahoo! (YHOO): Susquehanna raised their rating from Neutral to Positive and raised their target price from $17.00 to $20.00.

Checkpoint Software (CHKP): JPMorgan raised their rating from Neutral to Overweight and placed a target price of $50.00 on the company.

Downgrades

NetApp (NTAP): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $40.0 to $30.00. Pre-market: 29.22 -0.68 (-2.27%)

Texas Instruments (TXN): Gabelli lowered their rating from Buy to Hold.

Western Digital (WDC): CLSA lowered their rating from Outperform to Underperform and placed a target price of $34.00 on the company.

Monster Beverage (MNST): Goldman Sachs lowered their rating from Conviction Buy to Buy and placed a target price of $62.00 on the company.

Coverage Initiated

Dunkin Brands (DNKN): Miller Tabak initiated coverage with a Hold rating and target price of $34.00.

Earning Reports

3M (MMM): Reported EPS of $1.65 in-line with estimates. Pre-market: 90.30 -2.23 (-2.41%)

Airgas (ARG): Reported EPS of $1.05 missing estimates by -$0.01.

Autoliv (ALV): Reported EPS of $1.23 missing estimates by -$0.22. Pre-market: 58.84 -4.78 (-7.51%)

CIT Group (CIT): Reported EPS of -$1.52 missing estimates by -$0.28.

Coach (COH): Reported EPS of $0.77 beating estimates by +$0.01. Pre-market: 57.90 +3.73 (6.89%)

DuPont (DD): Reported EPS of $0.44 missing estimates by -$0.05. Pre-market: 46.25 -3.51 (-7.05%)

Harley-Davidson (HOG): Reported EPS of $0.59 beating estimates by +$0.01. Pre-market: 43.30 -0.23 (-0.53%)

RadioShack (RSH): Reported EPS of -$0.33 missing estimates by -$0.16.

Ryder Systems (R): Reported EPS of $1.28 beating estimates by +$0.10.

UPS (UPS): Reported EPS of $1.06 in-line with estimates.

Markets: 
Futures at 8:23: Dow -1.07%. S&P -1.20%. Nasdaq -1.08%. Crude -1.90% to $86.98. Gold -0.90% to $1710.80.

Europe: London -1.25%. Paris -1.87%. Frankfurt -1.74%. 

Asia: Japan +0.04% at 9014. Hong Kong closed. China -0.86% to 2114. India -0.44% to 18710. 

Morning Coffee Pre-Market Wall Street News

U.S. Stocks Are The Best Investment.  According to Bloomberg, U.S. stocks are beating all other major asset class for the first time in 17 years. The Standard & Poor’s 500 Index is currently up 14% year-to-date, beating Treasuries, corporate bonds, commodities, the dollar and stocks in Asia and Europe. The last time that occurred was back in 1995 when the S&P 500 index was posting large gains. Analysts point out that currently the S&P 500 Index has a PE ratio that is close to those when the S&P was rallying and that the index went on to gain another 93% over in the next 2 1/2 years.

Wall Street analysts are now estimating that the S&P 500 could surpass its all-time high next year. The median forecast has the S&P ending 2012 at 1,585. That level would put the index 1.3% higher than a record achieved back in October 2007.

Upgrades

Eaton Corp (ETN): MKM Partners raised their rating from Neutral to Buy and raised their target price from $50.00 to $57.00.

Kinder Morgan Energy Partners (KMP): Argus raised their rating from Hold to Buy and placed a target price of $93.00 on the company. Pre-market: 85.49 +0.78 (0.92%)

Intl Flavors & Fragrances (IFF): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $73.00 on the company.

Cable Vision Systems (CVC): Canaccord raised their rating from Hold to Buy and raised their target price from $18.00 to $23.00. Pre-market: 138.02 0.00 (0.00%)

BB&T Corp (BBT): Sterne Agee lowered their rating from Neutral to Buy and target price of $35.00 on the company.

Downgrades

Canadian Pacific Railway (CP): BMO Capital lowered their rating from Outperform to Market Perform and lowered their target price from $93.00 to $90.00. Pre-market: 30.10 +0.32 (1.07%)

SanDisk (SNDK): RBC Capital lowered their rating from Outperform to Sector Perform and placed a target price of $50.00 on the company. Pre-market: 43.35 -0.67 (-1.52%)

BB&T Corp (BBT): Sterne Agee lowered their rating from Buy to Neutral and lowered their target price from $37.00 to $32.00. Pre-market: 30.10 +0.32 (1.07%)

Porsche (POAHY): Goldman Sachs lowered their rating from Buy to Neutral.

Coverage Initiated

H&R Block (HRB): BTIG Initiated coverage with a Buy rating and placed a target price of $23.00 on the company.

Wendy’s (WEN): Credit Suisse initiated coverage with a Neutral rating and target price of $4.50.

Public Storage (PSA): Goldman Sachs initiated coverage with a Neutral rating and target price of $147.00.

Coverage Reiterated/Price Target Changed

Honeywell (HON): Oppenheimer reiterated their Outperform rating and raised their target price from $68.00 to $71.00.

Earning Reports

Bank of Hawaii (BOH): Reported EPS of $0.92 beating estimates by +$0.02.

Caterpillar (CAT): Reported EPS of $2.54 beating estimates by +$0.30. Pre-market: 83.22 -0.64 (-0.76%)

Hasbro (HAS): Reported EPS of $1.24 beating estimates by +$0.04. Pre-market: 39.75 +0.70 (1.79%)

Koninklijke Philips Electronics (PHG): Reported EPS of $0.18 missing estimates by -$0.07. Pre-market: 25.94 +1.34 (5.45%)

SunTrust Banks (STI): Reported EPS of $1.98 missing estimates by -$0.03. Pre-market: 28.05 -0.58 (-2.03%)

VF Cop (VFC): Reported EPS of $3.52 beating estimates by +$0.02. Pre-market: 157.00 -9.77 (-5.86%)

Markets: 
Futures at 7:31: Dow +0.28%. S&P +0.33%. Nasdaq +0.62%. Crude +0.83% to $90.80. Gold +0.26% to $1728.20.

Europe: London +0.11%. Paris +0.16%. Frankfurt -0.10%. 

Asia: Japan +0.09% to 9011. Hong Kong +0.68% to 21698. China +0.21% to 2133. India +0.59% to 18793. 

Morning Coffee Pre-Market Wall Street News

Microsoft and Google Disappoint Wall Street. Both Google (GOOG) and Microsoft (MSFT) disappointed traders after both companies reported earnings that missed estimates.  Things started off bad for Google when their earnings report was accidently release during trading hours.  The company was not due to report until after the market close. The company reported EPS of $9.03 missing estimates by -$1.63. Share immediately began to fall and fell over 9%, until a freeze was put on trading the shares. When shares reopened for trade they recover some, but still posted a loss of 8% for the day.

Next was Microsoft’s turn to report.  The company reported that their FQ1 net profit dropped 22% to $4.47 billion as sales declined 8% to $16.01 billion, which missed expectations.  Earnings came in at EPS of $0.53. Earnings were hurt by a 33% drop Microsoft's Windows division and the slumping PC market.

Upgrades

Huntington Banc (HBAN): FBR Capital raised their rating from Underperform to Market Perform and raised their target price from $5.50 to $7.50. Pre-market: 6.62 +0.01 (0.15%)

Textron (TXT): JPMorgan raised their rating from Neutral to Overweight and maintained their target price of $29.00.

Harley-Davidson (HOG): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $38.00 to $56.00.

Verizon (VZ): Pacific Crest raised their rating from Sector Perform to Outperform and raised their target price from $38.00 to $56.00.

Abbott Labs (ABT): Wells Fargo raised their rating from Market Perform to Outperform and placed a target range of $71.00-$74.00 on the company.

Downgrades

Snap-On (SNA): Janney Capital lowered their rating from Buy to Neutral and maintained their target price of $81.00.

Fifth Third (FITB): Compass Point lowered their rating from Buy to Neutral and lowered their target price from $17.00 to $16.00. Pre-market: 15.00 -0.12 (-0.79%)

Northrop Grumman (NOC): Oppenheimer lowered their rating from Outperform to Perform.

Google (GOOG): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $800.00 to $765.00. Pre-market: 703.50 +8.50 (1.22%)

Marvell (MRVL): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $12.50 to $9.50.00. Pre-market: 7.95 -0.88 (-9.97%)

Advance Micro (AMD): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $5.00 to $3.00. Pre-market: 2.54 -0.08 (-3.05%)

NVIDIA (NVDA): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $5.00 to $3.00. Pre-market: 12.67 -0.19 (-1.48%)

Coverage Initiated

Baidu (BIDU): UBS initiated coverage with a Buy rating and target price of $155.00.

Coverage Reiterated/Price Target Changed

Google (GOOG): Cantor Fitzgerald reiterated their Buy rating and lowered their target price from $830.00 to $820.00. Pre-market: 703.50 +8.50 (1.22%)

Earning Reports

Advance Micro (AMD): Reported EPS of -$0.20 missing estimates by -$0.04. Pre-market: 2.54 -0.08 (-3.05%)

Capitol One (COF): Reported EPS of $2.01 beating estimates by +$0.31. Pre-market: 59.09 +1.79 (3.12%)

Chipotle Mexican Grill (CMG): Reported EPS of $2.27 missing estimates by -$0.03. Pre-market: 255.75 -30.18 (-10.56%)

E*TRADE (ETFC): Reported EPS of $0.10 missing estimates by -$0.01. Pre-market: 8.82 -0.60 (-6.37%)

Forward Air (FWRD): Reported EPS of $0.41 beating estimates by +$0.01.

Google (GOOG): Reported EPS of $9.03 missing estimates by -$1.63. Pre-market: 703.50 +8.50 (1.22%)

Microsoft (MSFT): Reported EPS of $0.65 beating estimates by +$0.02. Pre-market: 29.11 -0.39 (-1.31%)

Markets: 
Futures at 8:40: Dow -0.30%. S&P -0.21%. Nasdaq -0.14%. Crude +0.18% at $92.27. Gold -0.50% to $1736.00.

Europe: London -0.08%. Paris -0.45%. Frankfurt -0.47%. 

Asia: Japan +0.22% to 9003. Hong Kong +0.15% to 21552. China -0.16% to 2128. India -0.58% to 18682. 

MORNING COFFEE Pre-market Wall Street News

Wall Street Waits For Microsoft and Google’s Earnings. Tech giants Microsoft (MSFT) and Google (GOOG) are due to report earnings today after the market close.  Analysts are expecting that Microsoft will continue to just tread water while Google will show continued growth.  Microsoft's EPS consensus is for the company to report EPS of $0.59 down from $0.068 a year-ago.  Revenues are expected to drop 5.5% to $16.42 billion. In contrast Google's EPS are expected to increase to $10.66 from $9.72. Revenues at Google are expected to raise a whopping 58% to $11.87 billion. (MSFT) Pre-market: 29.57 -0.02 (-0.07%) (GOOG) Pre-market: 754.00 -1.49 (-0.20%)

Upgrades

Comerica (CMA): Stifel Nicolaus raised their rating from Sell to Hold.

ConocoPhillips (COP): Goldman Sachs raised their rating from Sell to Neutral and maintained their target price of $55.00. Pre-market: 58.27 +0.15 (0.26%)

Harley-Davidson (HOG): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $54.00 on the company. Pre-market: 44.61 +0.61 (1.39%)

Downgrades

Xylem (XYL): Ladenburg Thalmann lowered their rating from Buy to Hold.

Stryker (SYK): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $59.00 to $56.00. Pre-market: 51.90 -0.92 (-1.74%)

Abbott Labs (ABT): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 66.80 -2.24 (-3.24%)

Coverage Initiated

Fossil (FOSL): Caris & Company initiated coverage with an Above Average rating and target price of $104.00. Pre-market: 89.25 -0.29 (-0.32%)

Stryker (SYK): Northland Securities initiated coverage with a Market Perform rating and target price of $52.00. Pre-market: 51.90 -0.92 (-1.74%)

Coverage Reiterated/Price Target Changed 

Halliburton (HAL): Dahlman Rose reiterated their Buy rating and lowered their target price from $49.00 to $47.00. Pre-market: 34.99 -0.33 (-0.93%)

Earning Reports

Baxter (BAX): Reported EPS of $1.14 in-line with estimates. Pre-market: 61.90 -0.02 (-0.03%)

BB&T (BBT): Reported EPS of $0.66 missing estimates by -$0.06. Pre-market: 31.04 -1.23 (-3.81%)

Diamond Offshore (DO): Reported EPS of $1.28 beating estimates by +0.26. Pre-market: 71.25 +1.48 (2.12%)

Fifth Third (FITB): Reported EPS of $0.38 in-line with estimates. Pre-market: 15.25 +0.12 (0.79%)

Morgan Stanley (MS): Reported EPS of $0.28 beating estimates by +0.03. Pre-market: 18.68 +0.19 (1.03%)

Nokia (NOK): Reported EPS of -$0.07 beating estimates by +0.03. Pre-market: 2.91 -0.03 (-1.02%)

Polaris Inds (PII): Reported EPS of $1.33 beating estimates by +0.13. Pre-market: 86.27 +0.99 (1.16%)

Snap-On (SNA): Reported EPS of $1.26 beating estimates by +0.03. Pre-market: 76.00 +1.75 (2.36%)

Verizon (VZ): Reported EPS of $0.64 in-line with estimates. Pre-market: 45.25 +0.53 (1.19%)

Markets: 
Futures at 8:19: Dow +0.06%. S&P -0.23%. Nasdaq -0.27%. Crude -0.31% to $91.83. Gold -0.69% to $1740.0.

Europe: London -0.17%. Paris -0.34%. Frankfurt +0.28%. 

Asia: Japan +2.00% to 8983. Hong Kong +0.48% to 21519. China +1.24% to 2132. India +0.97% to 18792. 

Citigroup Replaces Pandit as New CEO Corbat Considers Shakeup

Citigroup Replaces Pandit as New CEO Corbat Considers Shakeup

MORNING COFFEE Pre-market Wall Street News

UnitiedHealth Profit Surge. UnitedHealth's (UNH) reported that their Q3 net profit surged 28% to $1.6 billion.  The company also reported that their Q3 EPS came in at $1.50 beating Wall Street estimates of only $1.34 by 12%.  Year-ago EPS was only $1.17.  Revenues at the company rose to $27.3 billion, an 8% increase. UnitedHealth added 670,000 new customers in the quarter.  The company also raised it 2012 EPS outlook to $5.20-$5.25, above Wall Street’s consensus of $5.10. Pre-market: 58.24 +0.75 (1.30%)

Upgrades

Sprint Nextel (S): Robert W. Baird raised their rating from Underperform to Neutral and raised their target price from $4.00 to $6.00. Pre-market: 5.73 +0.04 (0.70%)

Sprint Nextel (S): Bernstein raised their rating from Underperform to Market Perform and placed a target price of $6.00 on the company. Pre-market: 5.73 +0.04 (0.70%)

Citigroup (C): Raymond James raised their rating from Outperform to Strong Buy and raised their target price from $35.00 to $44.00. Pre-market: 35.55 -1.11 (-3.03%)

Kroger (KR): Jefferies raised their rating from Hold to Buy and raised their target price from $25.00 to $30.00.

Fossil (FOSL): Citigroup raised their rating from Neutral to Buy and placed a target price of $100.00 on the company. Pre-market: 87.50 +2.41 (2.83%)

LG Display Co. (LPL): CLSA raised their rating from Underperform to Outperform.

Downgrades

Sprint Nextel (S): Hudson Square Research lowered their rating from Buy to Hold. Pre-Market: 5.73 +0.04 (0.70%)

UPS (UPS): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $84.00 to $80.00.

Expeditors International (EXPD): Robert W. Baird lowered their rating from Outperform to Neutral and placed a target price of $40.00 on the company.

Clearwire (CLWR): DA Davidson lowered their rating from Buy to Neutral and placed a target price of $3.00 on the company. Pre-market: 2.19 -0.50 (-18.59%)

Coverage Initiated

Halliburton (HAL): Credit Suisse initiated coverage with an Outperform rating and target price of $44.00. Pre-market: 34.15 +0.31 (0.92%)

Schlumberger (SLB): Credit Suisse initiated coverage with a Neutral rating and target price of $68.00. Pre-market: 73.02 +0.26 (0.36%)

Baker Hughes (BHI): Credit Suisse initiated coverage with a Neutral rating and target price of $40.00.

Earning Reports:

WD-40 (WDFC): Reported EPS of $0.56 missing estimates by -$0.14. After Hours: 46.42 -4.92 (-9.58%)

Coca-Cola (KO): Reported EPS of $0.51 in-line with estimates Pre-market: 38.25 +0.12 (0.31%).

Domino’s Pizza (DPZ): Reported EPS of $0.43 beating estimates by +$0.02. Pre-market: 39.50 +1.26 (3.29%)

Forest Labs (FRX): Reported EPS of $0.08 beating estimates by +$0.06.

Goldman Sachs (GS): Reported EPS of $2.85 beating estimates by +$0.58. Pre-market: 125.25 +0.75 (0.60%)

Johnson & Johnson (JNJ): Reported EPS of $1.25 beating estimates by +$0.04. Pre-market: 69.26 +0.66 (0.96%)

Mattel (MAT): Reported EPS of $1.04 beating estimates by +$0.05. Pre-market: 36.90 +1.48 (4.18%)

PNC Financial (PNC): Reported EPS of $1.64 beating estimates by +$0.04. Pre-market: 61.80 -1.13 (-1.80%)

State Street Corp (STT): Reported EPS of $0.99 beating estimates by +$0.03.

UnitedHealth (UNH): Reported EPS of $1.50 beating estimates by +$0.16. Pre-market: 58.24 +0.75 (1.30%)

Markets: 
Futures at 7:50: Dow +0.43%. S&P +0.54%. Nasdaq +0.47%. Crude +0.20% to $92.04. Gold +0.38% to $1744.30.

Europe: London +0.99%. Paris +1.02%. Frankfurt +1.21%. 

Asia: Japan +1.44% to 8701. Hong Kong +0.28% to 21207. China 0.00% to 2099. India -0.73% to 18578.