Morning Coffee Pre-Market Wall Street News

Judge Orders Hostess and Union to restart talks. Bankruptcy judge Robert Drain denied Hostess’s request filing to liquidate yesterday and told both sides to hold mediation talks today.  Hostess will also meet with its lender today. The union is refusing to make cuts that will save the company.

Upgrades

Merck (MRK): MKM Partners raised their rating from Neutral to Buy.

Joy Global (JOY): BMO Capital raised their rating from Underperform to Market Perform and raised their target price from $49.00 to $64.00.

Downgrades

Emerson (EMR): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $57.00 to $53.00.

Intel (INTC): UBS lowered their rating from Buy to Neutral and lowered their target price from $29.50 to $29.00.

Coverage Initiated

UnitedHealth Group (UNH): Lazard Capital initiated coverage with a Buy rating and placed a target price of $70.00 on the company.

Johnson & Johnson (JNJ): Stifel Nicolaus initiated coverage with a Hold rating.

Zimmer Holdings (ZMH): Stifel Nicolaus initiated coverage with a Hold rating.

St Jude Medical (STJ): Stifel Nicolaus initiated coverage with a Hold rating.

Stryker (SYK): Stifel Nicolaus initiated coverage with a Buy rating and target price of $65.00.

Medtronic (MDT): Stifel Nicolaus initiated coverage with a Hold rating. Pre-market: 42.30 +0.49 (1.17%)

Covidien (COV): Stifel Nicolaus initiated coverage with a Hold rating.

Boston Scientific (BSX): Stifel Nicolaus initiated coverage with a Buy rating and target price of $6.50.

Becton Dickinson (BDX): Stifel Nicolaus initiated coverage with a Hold rating.

Baxter (BAX): Stifel Nicolaus initiated coverage with a Hold rating.

Coach (COH): Wells Fargo initiated coverage with an Outperform rating and target range of $63.00 -$76.00.

Earning Reports

Agilent (A): Reported EPS of $0.86 beating estimates by +$0.06. Pre-market: 36.50 -1.01 (-2.69%)

Dycom (DY): Reported EPS of $0.36 beating estimates by +$0.02.

Urban Outfitters (URBN): Reported EPS of $0.40 missing estimates by -$0.01. Pre-market: 37.00 -0.07 (-0.19%)

Best Buy (BBY): Reported EPS of $0.03 missing estimates by -$0.09. Pre-market: 12.95 -0.80 (-5.82%)

Campbell Soup (CPB): Reported EPS of $0.88 beating estimates by +$0.03. Pre-market: 36.34 -0.61 (-1.65%)

Hewlett-Packard (HPQ): Reported EPS of $1.16 beating estimates by +$0.01. Pre-market: 11.77 -1.53 (-11.50%)

HJ Heinz (HNZ): Reported EPS of $0.90 beating estimates by +$0.02. Pre-market: 57.70 -1.02 (-1.74%)

Hormel Foods (HRL): Reported EPS of $0.49 in-line with estimates. Pre-market: 31.30 0.00 (0.00%)

Medtronic (MDT): Reported EPS of $0.88 in-line with estimates. Pre-market: 42.30 +0.49 (1.17%)

Markets: 
Futures at 8:43: Dow -0.08%. S&P +0.13%. Nasdaq +0.25%. Crude -0.72% to $88.65. Gold -0.11% to $1732.50.

Europe: London -0.19%. Paris -0.17%. Frankfurt +0.21%.

Asia: Japan -0.12% to 9143. Hong Kong -0.16% to 21228. China -0.40% to 2009. India -0.05% to 18329.

Morning Coffee Pre-Market Wall Street News

White House Wants To Slash Tax Breaks. As the fiscal cliff get closer reports say that the Obama Administration is proposing the elimination of $150 billion in tax breaks. As part of the negotiations to avert the fiscal cliff, tax breaks that would be eliminated include $28 billion for fossil fuel companies, $77 billion for inventory valuation, and $13 billion in capital-gains rates for P-E funds, VC firms, and real-estate transactions.

Upgrades

Halliburton (HAL): Macquarie raised their rating from Neutral to Outperform and placed a target price of $38.00 on the company. Pre-market: 31.00 +0.54 (1.77%)

Golar LNG Partners (GMLP): Citigroup raised their rating from Neutral to Buy and placed a target price of $33.50 on the company.

E*Trade Financial (ETFC): Evercore raised their rating from Underweight to Equal Weight. Pre-market: 7.94 +0.06 (0.71%)

Altria Group (MO): UBS raised their rating from Neutral to Buy and raised their target price from $35.00 to $36.00. Pre-market: 31.77 +0.53 (1.70%)

Bank of America (BAC): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $11.00 on the company. Pre-market: 9.32 +0.20 (2.19%)

Downgrades

VF Corp (VFC): DA Davidson lowered their rating from Buy to Neutral and placed a target price of $169.00 on the company. Pre-market: 156.12 +0.30 (0.19%)

Earning Reports

Lowe's (LOW): Reported EPS of $0.40 beating estimates by +$0.05. Pre-market: 33.45 +1.47 (4.60%)

Tyson Foods (TSN): Reported EPS of $0.55 beating estimates by +$0.11. Pre-market: 17.45 +0.57 (3.38%)

Markets: 
Futures at 7:36: Dow +0.49%. S&P +0.63%. Nasdaq +0.70%. Crude +1.22% to $87.98. Gold +0.55% to $1724.00.

Europe: London +1.23%. Paris +1.55%. Frankfurt +0.32%. 

Asia: Japan +1.43% to 9153.2. Hong Kong +0.49% to 21262. China +0.11% to 2017. India +0.16% to 18339. 

Morning Coffee Pre-Market Wall Street News

Google To Build 4G Network. Reports say that Google (GOOG) has been in talks with Dish Network (DISH) about building a 4G network using Dish’s spectrum. If such a 4G network were to be built it would be very costly, but would fit into Google’s push into mobile devices. The question is would such a network provide free access with Google relying on the additional ad revenues it would receive to fund such a project. GOOG Pre-market: 650.00 +2.74 (0.42%) DISH Pre-market: 34.93 +0.30 (0.87%)

President Obama To Meet With Congressional Leaders Today. President Barack Obama is scheduled to meet with all four Congressional leaders this morning to discuss ways of avoiding the looming fiscal cliff. States that would be hit hardest by the fiscal cliff include California, Illinois, Georgia, South Dakota and Virginia.

Upgrades

Gamestop (GME): Caris & Company raised their rating from Average to Buy and raised their target price from $20.00 to $31.00. After Hours: 24.23 -0.27 (-1.11%)

Gap (GPS): Canaccord Genuity raised their rating from Sell to Hold and raised their target price from $31.00 to $35.00. Pre-market: 34.74 +1.48 (4.45%)

Mylan Inc (MYL): Leerink raised their rating from Market Perform to Outperform and raised their target price from $26.00 to $30.00. Pre-market: 25.70 +0.20 (0.79%)

Bayer AG ADS (BAYRY): JPMorgan raised their rating from Neutral to Overweight.

Coverage Initiated

Halliburton (HAL): MLV & Co initiated coverage with a Hold rating and target price of $36.00. After Hours: 30.36 0.00 (0.00%)

Charles Schwab (SCHW): Compass Point initiated coverage with a Neutral rating and target price of $13.50.

TD Ameritrade (AMTD): Compass Point initiated coverage with a Neutral rating and target price of $17.00.

E*Trade (ETFC): Compass Point initiated coverage with a Neutral rating and target price of $8.50.

Valero Energy (VLO): Imperial Capital initiated coverage with an In-line rating and target price of $41.00. After Hours: 29.65 +0.07 (0.24%)

Downgrades

American Eagle Outfitters (AEO): BMO Capital lowered their rating from Outperform to Market Perform and lowered their target price from $27.00 to $20.00.

Earning Reports

Autodesk (ADSK): Reported EPS of $0.47 beating estimates by +$0.04.

Dell (DELL): Reported EPS of $0.39 missing estimates by -$0.01. Pre-market: 9.29 -0.27 (-2.82%)

Gap (GPS): Reported EPS of $0.63 beating estimates by +$0.01. Pre-market: 34.98 +1.72 (5.17%)

Intuit (INTU): Reported EPS of -$0.03 beating estimates by +$0.03.

Foot Locker (FL): Reported EPS of $0.63 beating estimates by +$0.09. Pre-market: 33.75 +1.90 (5.97%)

J.M. Smucker (SJM): Reported EPS of $1.45 in-line with estimates. Pre-market: 85.50 +0.12 (0.14%)

Markets: 
Futures at 7:19: Dow -0.18%. S&P -0.21%. Nasdaq -0.17%. Crude -0.14% at $85.33. Gold -0.30% to $1709.00.

Europe: London -0.67%. Paris -0.36%. Frankfurt -0.53%. 

Asia: Japan +2.20% to 9024. Hong Kong +0.24% to 21159. China -0.77% to 2015. India -0.79% to 18309. 

Morning Coffee Pre-Market Wall Street News

Eurozone Economy In Double Dip Recession. The Eurozone’s GDP fell by an expected 0.1% in Q3 after falling in Q2 by 0.2% sending the region into its second recession since 2009. Germany the zone largest economy continued to contract falling to 0.2% from 0.3%, Economist feel that Q4 will show continued contraction.

Upgrades

Halliburton (HAL): CLSA raised their rating from Underperform to Buy and placed a target price of $38.00 on the company. Pre-market: 30.30 +0.35 (1.17%)

Express Scripts (ESRX): Citigroup raised their rating from Neutral to Buy and placed a target price of $62.00 on the company. Pre-market: 50.57 +0.52 (1.04%)

Baker Hughes (BHI): CLSA raised their rating from Outperform to Buy and placed a target price of $38.00 on the company. Pre-market: 40.09 +0.45 (1.14%)

Abercrombie & Fitch (ANF): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $54.00 on the company. Pre-market: 41.93 +0.01 (0.02%)

Downgrades

Paychex (PAYX): Credit Suisse lowered their rating from Outperform to Neutral and lowered their target price from $36.00 to $35.00. Pre-market: 31.17 -0.38 (-1.19%)

Coverage Initiated

Exelis (XLS): Stifel Nicolaus initiated coverage with a Hold rating.

Earning Reports

Children's Place (PLCE): Reported EPS of $1.60 in-line with estimates. Pre-market: 51.99 -5.01 (-8.79%)

Dollar Tree (DLTR): Reported EPS of $0.51 beating estimates by +$0.02. Pre-market: 40.35 +2.59 (6.86%)

Perry Ellis (PERY): Reported EPS of $0.25 beating estimates by +$0.01.

Sally Beauty (SBH): Reported EPS of $0.39 beating estimates by +$0.03. Pre-market: 24.00 -0.75 (-3.03%)

Target (TGT): Reported EPS of $0.81 in-line with estimates. Pre-market: 61.85 +0.47 (0.77%)

Wal-Mart (WMT): Reported EPS of $1.08 beating estimates by +$0.01. Pre-market: 68.99 -2.32 (-3.25%)

Markets: 
Futures at 7:30: Dow -0.20%. S&P +0.07%. Nasdaq +0.09%. Crude +0.18% to $86.46. Gold -0.66% to $1718.50.

Europe: London -0.43%. Paris -0.44%. Frankfurt -0.91%. 

Asia: Japan +1.90% to 8830. Hong Kong -1.55% to 21109. China -1.22% to 2030. India -0.79% to 18471. 

Morning Coffee Pre-Market Wall Street News

Cisco’s Profits Soar. After the market close yesterday Cisco (CSCO) reported FQ1 results beat analyst expectations. Net profits at the company soared 18% to $2.1 billion with EPS of $0.48. Revenues at the company also rose 6% to $11.9 billion. The company also gave FQ2 guidance that was in line with Wall Street estimates. Pre-market: 18.05 +1.20 (7.12%)

"European Day of Action and Solidarity" Hits The Eurozone.  In their first coordinated efforts unions across the EU plan to hold a "European Day of Action and Solidarity" by striking. The strikes are the result of austerity programs put in place due to the eurozone debt crisis. Millions of union workers are expected to take part across Spain and Portugal. In addition to protest in Spain and Portugal union workers in Greece, Italy, France and Belgium plan work stoppages and demonstrations.

Upgrades

Cisco Systems (CSCO): Pacific Crest raised their rating from Sector Perform to Outperform. Pre-market: 18.05 +1.20 (7.12%)

Royal Caribbean (RCL): Argus raised their rating from Hold to Buy and placed a target price of $40.00 on the company. Pre-market: 34.72 +0.18 (0.52%)

Downgrades

Mosaic (MOS): Canaccord lowered their rating from Buy to Hold and lowered their target price from $65.00 to $55.00. Pre-market: 48.10 -2.65 (-5.22%)

Home Depot (HD): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 63.17 -0.21 (-0.33%)

Barrick Gold (ABX): Argus lowered their rating from Buy to Hold. Pre-market: 35.30 +0.01 (0.03%)

JC Penney (JCP): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $30.00 to $20.00. Pre-market: 17.45 +0.05 (0.29%)

Coverage Initiated

Marathon Petroleum (MPC): Imperial Capital initiated coverage with an Outperform rating and target price of $64.00 on the company.

Baxter International (BAX): Bernstein initiated coverage with an Outperform rating and target price of $79.00.

Earning Reports

Cisco Systems (CSCO): Reported EPS of $0.48 beating estimates by +$0.02. Pre-market: 18.13 +1.28 (7.60%)

Abercrombie & Fitch (ANF): Reported EPS of $0.87 beating estimates by +$0.27. Pre-market: 40.95 +9.77 (31.33%)

Staples (SPLS): Reported EPS of $0.46 beating estimates by +$0.01. Pre-market: 11.75 +0.50 (4.44%)

Tyco (TYC): Reported EPS of $0.33 missing estimates by -$0.03. Pre-market: 26.70 -0.63 (-2.31%)

Markets: 
Futures at 7:18: Dow +0.45%. S&P +0.23%. Nasdaq +0.45%. Crude -0.07% to $85.30. Gold -0.08% to $1723.50.

Europe: London -0.57%. Paris -0.43%. Frankfurt -0.34%. 

Asia: Japan +0.04% at 8665. Hong Kong +1.20% to 21442. China +0.37% to 2055. India closed.