MORNING COFFEE

BP’s Top Kill Fails. After attempting to stop the oil leak in the Gulf of Mexico, BP (BP) said Saturday that its 'top kill' efforts had failed. BP now will attempt to cut the pipe completely in half and cap it.  The procedure will increase the amount of oil spilling into the Gulf until the pipe can be capped.   Additionally, there are reports the U.S. government is seriously talking about the possibility of seizing control of BP’s American operations, finances and firing the CEO. Premarket:BP -14.7% 

French Debt Could Be Downgraded. France said it faces severe challenges in maintaining its triple-A credit rating, and announced some controversial cost-cutting measures in an effort to calm market anxieties. France's actions follow a Friday downgrade of Spain to AA+ from AAA.

Upgrades

Visa (V): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $86.00 on the company.

AOL (AOL): The Benchmark Company raised their rating from Hold to Buy and placed a target price of $25.00 on the company.

Priceline.com (PCLN): KeyBanc Capital Markets raised their rating from Hold to Buy and placed a target price of $260.00 on the company.

Downgrades

American Eagle (AEO): Caris & Company lowered their rating from Buy to Above Average and lowered their target price from $23.00 to $20.00.

Coverage Initiated

Finish Line (FINL): Phoenix Partners Group initiated coverage with a Buy rating and target price of $22.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Broadpoint AmTech reiterated the Buy rating and raised their target price from $320.00 to $340.00.

AutoZone (AZO): Morgan Joseph the Buy rating and raised their target price from $186.00 to $215.00.

·         Futures: Dow -1.1%. S&P -1.4%. Nasdaq -1.1%. Crude -2.6% to $72.06. Gold +0.8% to $1224.20.

·         Asia: Japan -0.6% to 9712. Hong Kong -1.4% to 19497. China -0.9% to 2568. India -2.2% to 16572.

·         Europe: London -2.1%. Paris -2.3%. Frankfurt -1.7%.

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