Morning Coffee Pre-Market Wall Street News

Walgreen’s drops Medical Coverage for Employees. Walgreen (WAG) is expected to announce today that they will no longer offer health care insurance for employees and their families. Instead the company is expected to give employees cash so they can buy their own insurance on an exchange. The company is expected to site the Obamacare law for the change. Several companies have already announced that they will be dropping health insurance for their employees or spouses. They include IBM and Time Warner, Trader Joes, UPS, and Xerox. Additionally, McDonalds and Dunkin Donuts are looking to get waivers from the law.

Upgrades:

Comstock (CRK): Global Hunter Securities raised their rating from Accumulate to Buy.

Downgrades:

Caterpillar (CAT): Robert W. Baird lowered their rating from Outperform to Neutral and maintained their target price of $90.00. Pre-market: 86.41 -0.66 (-0.76%)

Exelon (EXC): RBC Capital lowered their rating from Outperform to Sector Perform.

Intuit (INTU): Morgan Stanley lowered their rating from Equal Weight to Underweight and placed a target price of $62.00 on the company.

James River Coal (JRCC): BB&T lowered their rating from Hold to Underweight.

Joy Global (JOY): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $57.00 to $55.00. Pre-market: 52.38 -0.58 (-1.10%)

Coverage Initiated:

Allstate (ALL): Guggenheim initiated coverage with a Buy rating and target price of $63.00.

Marsh & McLennan (MMC): Guggenheim initiated coverage with a Buy rating and target price of $51.00.

Symantec (SYMC): Nomura initiated coverage with a Neutral rating.

Travelers Cos. (TRV): Guggenheim initiated coverage with a Neutral rating and target price of $87.00.

United States Steel (X): BMO Capital initiated coverage with a Market Perform rating and target price of $19.00.

Earning Reports:

Adobe Systems (ADBE): Reported EPS of $0.32 missing estimates by -$0.02. Pre-market: 51.20 +3.06 (6.36%)

Cracker Barrel (CBRL): Reported EPS of $1.43 beating estimates by +$0.08. Pre-market: 103.00 -4.00 (-3.74%)

FedEx (FDX): Reported EPS of $1.53 beating estimates by +$0.03. Pre-market: 113.80 +3.12 (2.82%)

General Mills (GIS): Reported EPS of $0.70 in-line with estimates. Pre-market: 50.02 +0.24 (0.48%)

Markets: 
Futures at 8:57: Dow -0.03%. S&P -0.01%. Nasdaq +0.27%. Crude +0.43% to $105.90. Gold -0.50% to $1302.90. U.S. 10 Year -3/32 2.867%.

Europe: London -0.04%. Paris +0.37%. Frankfurt +0.28%. 

Asia: Japan +1.35% to 14505. Hong Kong -0.27% to 23117. China +0.29% to 2192. India +0.80% to 19962. 

Morning Coffee Pre-Market Wall Street News

Inflation Rose Less Than Expected. The Labor Department reported this morning that inflation rose less than expected in August.  The CPI rose only +0.1% in August versus the +0.2% increase in July. The core CPI, which excludes food and energy rose +0.1%. Wall Street economist had expected a +0.2% for both the CPI and Core CPI numbers.

Upgrades:

American States Water (AWR): Brean Capital raised their rating from Hold to Buy and placed a target price of $28.00 on the company.

Broadcom (BRCM): Susquehanna raised their rating from Neutral to Positive and raised their target price from $33.00 to $35.00. Pre-market: 27.33 +0.42 (1.56%)

Delta Airlines (DAL): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $22.00 to $26.00. Pre-market: 23.64 +0.49 (2.12%)

FreightCar America (RAIL): Stephens raised their rating from Equal Weight to Overweight and raised their target price from $18.00 to $24.00. Pre-market: 19.96 +0.66 (3.42%)

Mead Johnson Nutrition (MJN): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $78.00 to $88.00. Pre-market: 76.11 0.00 (0.00%)

US Airways (LCC): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $18.00 to $26.00. Pre-market: 18.58 +0.51 (2.82%)

Verizon Communications (VZ): RBC Capital raised their rating from Sector Perform to Outperform and placed a target price of $54.00 on the company.

Downgrades:

Comstock Resources (CRK): Howard Weil lowered their rating from Sector Outperform to Sector Perform. Pre-market: 15.89 -0.12 (-0.75%)

ConAgra Foods (CAG): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $36.00 to $33.00.

Kellogg (K): JPMorgan lowered their rating from Neutral to Underweight and lowered their target price from $65.00 to $60.00.

Steven Madden (SHOO): Wedbush lowered their rating from Outperform to Neutral and maintained their target price of $55.00.

Coverage Initiated:

Angie’s List (ANGI): Telsey Advisory Group placed a target price of $29.00 on the company. Pre-market: 20.83 +0.59 (2.92%)

Perrigo (PRGO): CRT Capital initiated coverage with a Buy rating and target price of $145.00.

Earning Reports:

Coty (COTY): Reported EPS of $0.03 beating estimates by +$0.01.

FactSet Research (FDS): Reported EPS of $1.20 beating estimates by +$0.01. Pre-market: 111.00 -1.25 (-1.11%)

Markets: 
Futures at 8:20: Dow +0.05%. S&P +0.01%. Nasdaq +0.11%. Crude -0.43% to $106.12. Gold +0.10% to $1319.00. U.S. 10 Year +7/32 2.841%.

Europe: London -0.49%. Paris -0.23%. Frankfurt -0.21%. 

Asia: Japan -0.65% to 14312. Hong Kong -0.31% to 23181. China -2.05% to 2186. India +0.31% to 19804. 

Active Shooter at Washington Navy Yard

Active Shooter at Washington Navy Yard

Morning Coffee Pre-Market Wall Street News

Summers Taps Out of Fed Chair Job. Reports say that Larry Summers has officially taped out for consideration as the next Fed Chairman, saying that "any possible confirmation process for me would be acrimonious." Both Democrats and Republican were expected to object to his nomination to replace Ben Bernanke. The top remaining contenders for the position are Janet Yellen, who would be the first woman Fed Chairman and Don Kohn.

Upgrades:

AstraZeneca (AZN): Nordea raised their rating from Sell to Buy. Pre-market: 51.88 +1.23 (2.43%)

Barclays (BCS): Nomura raised their rating from Reduce to Buy. Pre-market: 19.50 +0.28 (1.46%)

Bristol Myers Squibb (BMY): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $50.00 to $52.00. Pre-market: 44.41 +0.85 (1.95%)

Dominion Resources (D): ISI Group raised their rating from Neutral to Buy and raised their target price to$66.00.

Express (EXPR): The ResearchTeam raised their rating from Hold to Accumulate.

Intel (INTC): The ResearchTeam raised their rating from Reduce to Hold. Pre-market: 23.62 +0.18 (0.77%)

Mosaic (MOS): The ResearchTeam raised their rating from Reduce to Hold. Pre-market: 46.62 +0.63 (1.37%)

Synaptics (SYNA): The ResearchTeam raised their rating from Reduce to Hold. Pre-market: 64.26 +0.72 (1.13%)

Teleflex (TFX): Raymond James raised their rating from Market Perform to Outperform.

Western Union (WU): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $22.00 on the company. Pre-market: 18.87 +0.46 (2.50%)

Downgrades:

Las Vegas Sands (LVS): ISI Group lowered their rating from Buy to Neutral and placed a target price of $61.00 on the company.

Under Armour (UA): Susquehanna lowered their rating from Positive to Neutral and maintained a target price of $77.00 on the company. Pre-market: 78.25 -0.25 (-0.32%)

Wynn Resorts (WYNN): ISI Group lowered their rating from Buy to Neutral and placed a target price of $149.00 on the company. Pre-market: 151.14 +0.79 (0.53%)

Markets: 

Futures at 6:20: Dow +1.1%. S&P +1.1%. Nasdaq +1%. Crude -1.3% to $106.84. Gold +0.45% to $1314.50.  U.S. 10 Year +22/32 2.805%.

Europe: London +0.89%. Paris +0.98%. Frankfurt +1.29%. 

Asia: Japan closed. Hong Kong +1.47% to 23252. China -0.22% to 2231. India +0.05% to 19742. 

Morning Coffee Pre-Market Wall Street News

Tablets outpace PC’s. The research firm IDC announced that their research shows that shipments of tablet computers will outstrip those of PCs for the first time ever in Q4. The firm estimates that deliveries of tablets will reach 84.1M units and PC’s shipments will total only 83.1M. Companies that are expected to benefit from this trend include Apple (AAPL), Google (GOOG), and Samsung (SSNLF), while companies that will be hurt from this trend include Dell (DELL), H-P (HPQ), and Microsoft (MSFT).  IDC also estimates that the total market for Internet-connected devices of desktops, laptops, smartphones and tablets is projected to grow 28% to $622.4B in 2013 and then grow to $735.1B in 2015.

Upgrades:

Allstate (ALL): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $48.00-$52.00 to $58.00-$62.00.

SunTrust Bank (STI): Compass Point raised their rating from Neutral to Buy. Pre-market: 33.41 +0.15 (0.45%)

Wendy’s (WEN): Argus raised their rating from Hold to Buy and placed a target price of $10.00 on the company. Pre-market: 8.48 +0.23 (2.79%)

Zynga (ZNGA): Evercore raised their rating from Underweight to Equal Weight. Pre-market: 3.06 +0.06 (2.00%)

Downgrades:

AB InBev (BUD): Normura lowered their rating from Neutral to Reduce. Pre-market: 96.33 -1.32 (-1.35%)

Apple (AAPL): Credit Suisse lowered their rating from Outperform to Neutral. Pre-market: 471.00 +3.29 (0.70%)

Ericsson (ERIC): Goldman Sachs lowered their rating from Conviction Buy to Buy.

Halliburton (HAL): Macquarie lowered their rating from Outperform to Neutral and lowered their target price from $54.00 to $51.00. Pre-market: 49.76 -0.43 (-0.86%)

SABMiller PLC (SBMRY): Normura lowered their rating from Neutral to Reduce.

Symantec (SYMC): Morgan Stanley lowered their rating from Overweight to Equal Weight. Pre-market: 24.71 -0.55 (-2.18%)

Travelers Cos. (TRV): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $94.00-$98.00 to $92.00-$89.00. Pre-market: 83.20 -0.53 (-0.63%)

Coverage Initiated:

Aqua America (WTR): Ladenburg Thalmann initiated coverage with a Buy rating and target price of $28.00.

American Water Works (AWK): Ladenburg Thalmann initiated coverage with a Buy rating and target price of $50.00.

Expedia (EXPE): Janney Capital initiated coverage with a Neutral rating and target price of $53.00.

Priceline.com (PLCN): Janney Capital initiated coverage with a Neutral rating and target price of $925.00. Pre-market: 983.00 +1.44 (0.15%)

Markets: 
Futures at 7:59: Dow +0.04%. S&P -0.05%.  Nasdaq +0.16%. Crude +0.73% to $108.34. Gold -1.73% to $1340.00. U.S. 10 Year +4/32 2.898%.

Europe: London +0.12%. Paris -0.16%. Frankfurt +0.09%. 

Asia: Japan -0.26% to 14387. Hong Kong +0.07% to 22954. China +0.64% to 2256. India -1.08% to 1978 

Morning Coffee Pre-Market Wall Street News

Obama Delays Military Strike. In a televised speech last night President Obama has asked Congress to delay the vote on approving military strikes against Syria. Earlier in the week Sec. John Kerry floated an idea to have Syria give up their chemical weapon and Russia’s Vladimir Putin took the idea to Syria where their leaders agreed to the idea.  Many analysts are saying that all the delays have made the U.S. look weak and has allowed Syria to hide their chemical stock piles.  They are also questioning whether the agreement is just a stalling tactic similar to those being used by Iran to hide their nuclear weapons program.  

Upgrades:

ConAgra Food (CAG): Goldman Sachs raised their rating from Buy to Neutral and placed a target price of $42.00 on the company.

Ingersoll-Rand (IR): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $53.00 to $72.00. Pre-market: 64.90 +0.09 (0.14%)

Kennametal (KMT): Global Hunter raised their rating from Buy to Neutral and raised their target price from $37.00 to $55.00.

Morgan Stanley (MS): UBS raised their rating from Buy to Neutral and raised their target price from $28.00 to $33.00.

Nokia (NOK): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $5.00 to $7.00.

Revlon Inc. (REV): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $25.00 to $31.00.

RF Micro Devices (RFMD): Raymond James raised their rating from Market Perform to Strong Buy.

Skyworks Solutions (SWKS): Raymond James raised their rating from Outperform to Strong Buy.

Snap-On Tools (SNA): Janney Capital raised their rating from Neutral to Buy.

Downgrades:

Apple (AAPL): UBS lowered their rating from Buy to Neutral and lowered their target price from $560.00 to $520.00. Pre-market: 467.33 -27.31 (-5.52%)

Apple (AAPL): Credit Suisse lowered their rating from Outperform to Neutral and maintained their target price of $525.00. Pre-market: 467.33 -27.31 (-5.52%)

BlackRock (BLK): UBS lowered their rating from Buy to Neutral and lowered their target price from $310.00 to $280.00.

Lions Gate Entertainment (LGF): Cowen lowered their rating from Outperform to Market Perform and lowered their target price from $36.00 to $32.00.

Proctor Gamble (PG): SunTrust lowered their rating from Buy to Neutral and lowered their target price from $88.00 to $80.00.

Rockwell Automation (ROK): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $106.00 to $91.00. Pre-market: 103.55 -0.47 (-0.45%)

Take-Two Interactive (TTWO): Pacific Crest lowered their rating from Outperform to Sector Perform. Pre-market: 17.85 -0.29 (-1.60%)

Coverage Initiated:

W.P. Carey (WPC): BMO Capital initiated coverage with an Outperform rating and target price of $74.00.

Markets: 
Futures at 8:06: Dow +0.01%. S&P -0.07%. Nasdaq -0.38%. Crude -0.03% to $107.37. Gold -0.19% to $1361.40. U.S. 10 Year +7/32 2.946%

Europe: London -0.09%. Paris -0.10%. Frankfurt +0.55%. 

Asia: Japan +0.01% at 14425. Hong Kong -0.17% to 22937. China +0.15% to 2241. India +0.01% to 19997. 

Morning Coffee Pre-Market Wall Street News

Facebook Users Upset Over Privacy. Once again Facebook (FB) users are upset once they learned about the company newly proposed privacy language. The new language would allow for the indiscriminate use of members' information, likeness, and user-generated content for advertising purposes. Privacy groups are warning that the company is attempting to "routinely use the images and names of users for commercial advertising without consent. The Electronic Privacy Information Center, Center for Digital Democracy, Consumer Watchdog, Patient Privacy Rights, U.S. PIRG, and the Privacy Rights Clearinghouse have all voiced their concerns to the FTC in a letter.

Upgrades:

Diego PLC (DEO): Citigroup raised their rating from Neutral to Buy. Pre-market: 124.21 +1.13 (0.92%)

Ericsson (ERIC): Credit Suisse raised their rating from Neutral to Outperform. Pre-market: 13.00 +0.46 (3.67%)

Korn/Ferry (KFY): RW Baird raised their rating from Neutral to Outperform and raised their target price from $20.00 to $24.00. Pre-market: 19.72 +1.00 (5.34%)

Moody’s Corp (MCO): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $74.00 on the company.

Stryker (SYK): Credit Suisse raised their rating from Neutral to Outperform and maintained their target price of $77.00. Pre-market: 68.50 +0.71 (1.05%)

Coverage Initiated:

Arch Coal (ACI): Macquarie initiated coverage with a Neutral rating and target price of $4.50. Pre-market: 4.78 +0.05 (1.06%)

Brinker International (EAT): Wunderlich initiated coverage with a Hold rating and target price of $44.00.

Cracker Barrel Old Country Store (CBRL): Wunderlich initiated coverage with a Hold rating and target price of $106.00. Pre-market: 98.71 0.00 (0.00%)

Darden Restaurants (DRI): Wunderlich initiated coverage with a Hold rating and target price of $50.00. Pre-market: 47.43 +0.57 (1.22%)

Jack in the Box (JACK): Wunderlich initiated coverage with a Buy rating and target price of $46.00.

Peabody Energy (BTU): Macquarie initiated coverage with a Neutral rating and target price of $18.00. Pre-market: 18.20 +0.20 (1.11%)

Under Armour (UA): Jefferies initiated coverage with a Hold rating and target price of $71.00. Pre-market: 77.35 +0.46 (0.60%)

Zillow (Z): Deutsche Bank initiated coverage with a Hold rating and target price of $83.00

Earning Reports:

Korn/Ferry (KFY): Reported EPS of $0.33 beating estimates by +$0.03. Pre-market: 19.72 +1.00 (5.34%)

Smithfield Foods (SFD): Reported EPS of $0.27 missing estimates by -$0.16. Pre-market: 33.88 -0.08 (-0.24%)

Smith &Wesson (SWHC): Reported EPS of $0.45 beating estimates by +$0.09. Pre-market: 10.85 -0.63 (-5.49%)

Zumiez (ZUMZ): Reported EPS of $0.20 beating estimates by +$0.02. Pre-market: 24.05 -1.24 (-4.90%)

Markets: 
Futures at 8:31: Dow +0.34%. S&P +0.39%. Nasdaq +0.30%. Crude +0.17% to $109.17. Gold +0.88% to $1386.00. U.S. 10 Year +31/32 2.881%.

Europe: London -0.16%. Paris -0.12%. Frankfurt +0.53%. 

Asia: Japan -1.45% to 13860. Hong Kong +0.10% to 22621. China +0.83% to 2139. India +1.53% to 19263.