Morning Coffee Pre-Market Wall Street News

Wall Street Awaits Fed Decision. The FOMC will be wrapping up their two day policy meeting today and Wall Street will be watching closely. Economists are now more confident now that the Fed won't signal the end of its QE program, but their policy statement will be analyzed closely for any hints that the Fed may end their QE program in the future or begin to raise interest rates.

Upgrades:

Adobe Systems (ADBE): BofA Merrill Lynch raised their rating from Neutral to Buy and raised their target price from $47.00 to $57.00. Pre-market: 46.57 +3.21 (7.40%)

Ball Corp (BLL): RW Baird raised their rating from Neutral to Outperform and raised their target price from $48.00 to $50.00.

Toll Brothers (TOLL): Argus raised their rating from Hold to Buy and placed a target price of $42.00 on the company. Pre-market: 34.49 +0.45 (1.32%)

Downgrades:

American Eagle (AEO): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $23.00 to $21.00. Pre-market: 18.75 -0.41 (-2.14%)

Brown & Brown (BRO): William Blair lowered their rating from Outperform to Market Perform.

News Corp (NWSA): BTIG lowered their rating from Outperform to Neutral. Pre-market: 31.75 +0.19 (0.60%)

Research in Motion (BBRY): Bernstein lowered their rating from Market Perform to Underperform and lowered their target price from $15.00 to $10.00. Pre-market: 14.51 -0.33 (-2.22%)

Sprint Nextel (S): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $8.00 on the company. Pre-market: 7.11 -0.21 (-2.87%)

Coverage Initiated:

Coca-Cola (KO): Credit Suisse initiated coverage with a Outperform rating and target price of $48.00. Pre-market: 41.05 +0.12 (0.29%)

Dr Pepper Snapple (DPS): Credit Suisse initiated coverage with a Neutral rating and target price of $50.00.

PepsiCo (PEP): Credit Suisse initiated coverage with a Neutral rating and target price of $87.00.

Teva Pharm (TEVA): Maxim initiated coverage with a Buy rating and target price of $56.00.

Earning Reports:

Actuant (ATU): Reported EPS of $0.62 beating estimates by $0.04. Pre-market: 33.70 +0.62 (1.87%)

Adobe Systems (ADBE): Reported EPS of $0.36 beating estimates by $0.02. Pre-market: 46.40 +3.04 (7.01%)

FedEx (FDX): Reported EPS of $2.13 beating estimates by $0.18. Pre-market: 98.99 -0.49 (-0.49%)

La-Z-Boy (LZB): Reported EPS of $0.30 beating estimates by $0.02. After Hours: 19.91 -0.37 (-1.82%)

Markets: 
Futures at 7:31: Dow +0.10%. S&P -0.05%. Nasdaq +0.13%. Crude +0.17% to $98.62. Gold +0.31 at $1371.20.

Europe: London -0.53%. Paris -0.71%. Frankfurt -0.29%. 

Asia: Japan +1.83% to 13245. Hong Kong -1.13% to 20987. China-0.73% to 2143. India +0.12% to 19246. 

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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

Obama Is Spying On You! 

Shocking revelations have surfaced the Obama Administration using the NSA and other government agencies to spy on millions of Americans. Under a program with the NSA called PRISM the government has “direct access” to the servers of Apple (AAPL), AOL (AOL), Facebook (FB), Google (GOOG), Microsoft (MSFT), Paltalk, Skype, Yahoo (YHOO), and YouTube. Through this access the NSA is data mining key words, phrases, photos and more.

This comes on the news that the NSA has also been monitoring every call made through AT&T (T), Sprint (S), and Verizon (VZ).  The call monitoring includes who you called, when you called, the location of your call, how often you called and who those people called. Together, the service providers have 314.6M wirelesss and landline accounts. Yesterday in testimony Attorney General Eric Holder refused to answer when questioned by a member of congress as to whether they are or have been monitoring any member of Congress’s phone calls.

Additionally, reports are breaking that the NSA's operations also encompass your purchase information from unnamed credit-card providers.

Many are now saying that these actions are a direct violation of both the first and second amendments and that this government and administration is out of control.

This shocking news comes on the heels of several scandals. The IRS scandal where the IRS targeted conservative, religious and Jewish groups with audits, the AP and Fox News wire tapping scandal, the Benghazi attack scandal in which a U.S Ambassador and 4 other were killed, and the Fast & Furious gun running scandal, in which hundreds of Mexican citizen have been killed.

Upgrades

Abercrombie & Fitch (ANF): BofA Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $60.00 on the company.

Bayer AG (BAYRY): BNP Paribas raised their rating from Neutral to Outperform.

Broadcom (BRCM): Macquarie raised their rating from Neutral to Outperform and raised their target price from $35.70 to $40.80. Pre-market: 35.34 +0.38 (1.09%)

Brocade Communications (BRCD): ISI Group raised their rating from Neutral to Buy and placed a target price of $7.50 on the company. Pre-market: 5.55 +0.15 (2.78%)

Tyson Foods (TSN): Stephens raised their rating from Equal Weight to Overweight and raised their target price from $26.00 to $30.00.

Yum! Brands (YUM): UBS raised their rating from Neutral to Buy and raised their target price from $73.00 to $80.00. Pre-market: 72.15 +1.03 (1.45%)

Downgrades

Arch Coal (ACI): Raymond James lowered their rating from Market Perform to Underperform. Pre-market: 5.10 -0.01 (-0.20%)

Intel (INTC): Piper Jaffrey lowered their rating from Neutral to Underweight and lowered their target price from $21.00 to $20.00. Pre-market: 24.55 -0.10 (-0.41%)

Iron Mountain (IRM): Stifel lowered their rating from Buy to Hold. Pre-market: 29.06 -5.34 (-15.52%)

James River Coal (JRCC): Raymond James lowered their rating from Market Perform to Underperform. Pre-market: 2.43 -0.43 (-15.03%)

Sprint Nextel (S): Nomura lowered their rating from Buy to Neutral. Pre-market: 7.34 0.00 (0.00%)

VMware (VMW): Drexel Hamilton lowered their rating from Buy to Hold. Pre-market: 71.00 -0.83 (-1.16%)

Coverage Initiated

Bank of America (BAC): Macquarie initiated coverage with an Underperform rating and target price of $12.00. Pre-market: 13.28 +0.08 (0.61%)

Citigroup (C): Macquarie initiated coverage with an Outperform rating and target price of $62.00. Pre-market: 51.30 +0.47 (0.92%)

Goldman Sachs (GS): Macquarie resumed coverage with a Neutral rating. Pre-market: 160.70 +1.02 (0.64%)

Morgan Stanley (MS): Macquarie initiated coverage with an Outperform rating and target price of $30.00. Pre-market: 25.66 +0.25 (0.98%)

Qualcomm (QCOM): Topeka initiated coverage with a Hold rating and target price of $65.00. Pre-market: 63.23 +0.26 (0.41%)

Rambus (RMBS): Topeka initiated coverage with a Buy rating and target price of $10.00.

Take-Two (TTWO): Stifel initiated coverage with a Buy rating and target price of $21.00. After Hours: 16.29 +0.21 (1.31%)

Earning Reports:

Quiksilver (ZQK): Reported EPS of -$0.12 missing estimates by -$0.16. Pre-market: 6.90 -0.77 (-10.04%)

Thor Industries (THO): Reported EPS of $0.82 missing estimates by -$0.06. After Hours: 42.50 +1.26 (3.06%)

Vail Resorts (MTN): Reported EPS of $2.66 missing estimates by -$0.09. After Hours: 59.50 -2.66 (-4.28%)

Markets: 
Futures at 7:53: Dow -0.06%. S&P -0.06%. Nasdaq -0.06%. Crude +0.46% to $95.20. Gold -0.45% to $1409.40.

Europe: London -0.16%. Paris -0.10%. Frankfurt -0.27%. 

Asia: Japan -0.21% to 12878. Hong Kong -1.21% to 21575. China -1.39% to 2211. India -0.46% to 19429. 

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Your Professional sports career is very important, so you hired the best agent to negotiate your contract. 

Your Investments are even more important, so shouldn't you hire the best wealth manager to handle your investments? 

RL Paler Investment Advisors, LLC is one of the few elite firms that have been helping professional athletes for over 24 years. 

This presentation will outline the wealth management services we provide our athlete clients. 

Wealth Management Services for Professional Athletes

Morning Coffee Pre-Market Wall Street News

Payroll Numbers Miss Estimates. The morning ADP released their payroll report for May.  Economist had estimated that 157,000 new jobs were created.  But the report showed that private sector employment increased by only 135,000 jobs from April to May. Additionally,  April’s job gains were revised downward to 113,000 from 119,000. In a statement Carlos A. Rodriguez, president and CEO of ADP said "The majority of new jobs in May came from the service-providing sector, which added a total of 138,000 jobs, while the goods-producing sector recorded a loss of 3,000 jobs. Notably, a gain of 5,000 jobs in the construction industry during May was offset by a decline of 6,000 lost jobs in the manufacturing industry."

Upgrades

Bed Bath & Beyond (BBBY): Nomura raised their rating from Neutral to Buy and raised their target price from $72.00 to $82.00.

Forest Labs (FRX): Argus raised their rating from Hold to Buy and placed a target price of $46.00 on the company.

Downgrades

JA Solar (JASO): Goldman Sachs lowered their rating from Neutral to Sell and lowered their target price from $4.50 to $4.25.

Joy Global (JOY): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $72.00 to $60.00.

Microsoft (MSFT): Deutsche Bank lowered their rating from Buy to Hold. Pre-market: 34.60 -0.39 (-1.11%)

Occidental Petroleum (OXY): Sterne Agee lowered their rating from Buy to Neutral.

VMware (VMW): Deutsche Bank lowered their rating from Buy to Hold. Pre-market: 67.54 -1.08 (-1.57%)

Coverage Initiated

Allstate Corp (ALL): Nomura initiated coverage with a Neutral rating.

American International Group (AIG): Nomura initiated coverage with a Neutral rating.

Carlyle Group (CG): Sandler O’Neill initiated coverage with a Buy rating and target price of $36.00. Pre-market: 27.75 -0.07 (-0.24%)

Chubb (CB): Nomura initiated coverage with a Neutral rating. Pre-market: 86.23 +0.07 (0.08%)

First Solar (FSLR): Maxim Group resumed coverage with a Sell rating and target price of $42.00. Pre-market: 51.97 -0.65 (-1.24%)

Marsh & McLennan (MMC): Nomura initiated coverage with a Neutral rating.

PartnerRe (PRE): Nomura initiated coverage with a Neutral rating.

Travelers Group (TRV): Nomura initiated coverage with a Neutral rating.

Earning Reports

Brown-Forman (BF.B): Reported EPS of $0.52 beating estimates by +$0.06.

Jos A. Bank (JOSB): Reported EPS of $0.29 in-line with estimates.

Markets: 
Futures at 8:39: Dow -0.30%. S&P -0.31%. Nasdaq -0.30%. Crude +0.48% to $93.75. Gold +0.51 at $1404.30.

Europe: London -1.45%. Paris -1.21%. Frankfurt -0.85%. 

Asia: Japan -3.26% to 13015. Hong Kong -0.97% to 22069. China -0.38% to 2271. India +0.11% to 19568. 

Morning Coffee Pre-Market Wall Street News

Chrysler Post Nice Sales Gains.

Chrysler’s Group LLC's, which is owned by Fiat S.p.A (FIATY) reported that their May sales in the U.S. rose 11% beating estimates from Edmunds.com.

For May, Chrysler said it sold 166,596 vehicles, up from 150,041 a year ago, and +0.6% above April's total of 156,698. Truck sales at the company grew +8.8% while car sales increased +16%.

Sales of the Chrysler line of vehicles fell -2%, while Jeep rose +0.5%. Big sales increased were seen at Dodge led by the Dodge Avenger and Dodge Challenger.  Dodge saw their sales increase +23%.

General Motors Co. (GM), and Ford Motor Co. (F) along with other manufactures are expected to report May sales later today.

Overall, U.S. new auto sales for May are expected to rise +6.5% from a year earlier.

Upgrades

Best Buy (BBY): SunTrust raised their rating from Neutral to Buy and placed a target price of $35.00 on the company. Pre-market: 28.46 +0.91 (3.30%)

 Host Hotels & Resorts (HST): ISI Group raised their rating from Neutral to Buy.

Intel (INTC): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $23.00 to $28.00. Pre-market: 24.67 +0.39 (1.61%)

MetLife (MET): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $46.00 to $51.00. Pre-market: 44.99 +0.78 (1.76%)

Orbitz Worldwide (OWW): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $9.50 on the company.

Plum Creek Timber (PCL): Bank of America Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $55.00 on the company.

Starwood Hotels & Resorts (HOT): ISI Group raised their rating from Neutral to Buy.

Downgrades

Torchmark Corp (TMK): Janney Capital lowered their rating from Buy to Neutral.

Coverage Initiated

Applied Micro (AMCC): FBR Capital initiated coverage with an Outperform rating and target price of $11.00.

Guess? (GES): Topeka initiated coverage with a Hold rating and target price of $34.00.

Coverage Reiterated/Price Target Changed 

Google (GOOG): Cantor Fitzgerald reiterated their Buy rating and raised their target price from $900.00 to $1030.00. Pre-market: 874.77 +3.55 (0.41%)

Earning Reports

Cracker Barrel (CBRL): Reported EPS of $1.02 beating estimates by +$0.08. Pre-market: 93.01 +3.55 (3.97%)

Markets: 
Futures at 8:31: Dow +0.50%. S&P +0.29%. Nasdaq +0.33%. Crude +0.91% to $92.81. Gold +0.23% to $1396.70.

Europe: London -0.39%. Paris +0.16%. Frankfurt +0.13%. 

Asia: Japan -3.72% to 13262. Hong Kong -0.49% to 22282. China -0.06% to 2299. India -0.76% to 19610.