MORNING COFFEE

Market Looking for Fed Decision. The FOMC is expected to announce their decision on where interest rates should be today at 12:30 ET.  Most economists are expected the Fed to keep interest rates unchanged at 0%-0.25% and confirm that it will end its $600 billion Treasury buying program.  Additionally, economists are expecting the Fed to trim their growth expectations for the U.S. economy.  The market will be looking at the Feds wording for the future direction of interest rates.  Most are expecting the Fed to keep its wording the same.

Upgrades

Forest Labs (FRX): Argus raised their rating from Hold to Buy and placed a target price of $46.00 on the company. Pre-market: 40.80 +0.65 (1.62%)

Newell Rubbermaid (NWL): Raymond James raised their rating from Market Perform to Strong Buy and placed a target price of $19.00 on the company. Pre-market: 15.46 +0.26 (1.71%)

Forest Oil (FST): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $34.00 on the company. Pre-market: 26.56 +0.26 (0.99%)

Biogen Idec (BIIB): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $100.00 to $125.00. Pre-market: 100.15 +1.50 (1.52%)

Coverage Initiated

Polo Ralph Lauren (RL): Wells Fargo initiated coverage with a Buy rating and placed a value range of $138.00 to $145.00 on the company.

Boston Scientific (BSX): Stifel Nicolaus initiated coverage with a Buy rating and target price of $9.00. Pre-market: 7.06 +0.14 (2.02%)

Downgrades

Synovus (SNV): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $3.50 to $2.50.

Earning Reports

Adobe (ADBE): Reported FQ2 EPS of $0.55 beating estimates by +$0.04 on revenue of $1.02 billion, beating estimates by +$0.07 billion.  The company also gave FQ3 EPS guidance of $0.50-0.56. Pre-market: 30.30 -1.71 (-5.34%)

Jabil Circuit (JBL): Reported FQ3 EPS of $0.58 beating estimates by +$0.01 on revenue of $4.2 billion, beating estimates by +$0.06 billion. Pre-market: 19.33 +0.48 (2.55%)

CarMax (KMX): Reported EPS of $0.55 beating estimates by +$0.08. Pre-market: 33.30 +2.78 (9.11%)

FedEx (FDX): Reported EPS of $1.75 beating estimates by +$0.02. Pre-market: 91.48 +2.35 (2.64%)

·         Futures at 8:49: Dow -0.24%. S&P -0.25%. Nasdaq -0.32%. Crude -0.55% to $93.66. Gold -0.04% to $1545.80.

·         Europe: London -0.16%. Paris -0.31%. Frankfurt -0.17%.

·         Asia: Japan +1.8% to 9629. Hong Kong +0.0% to 21860. China+0.1% to 2649. India -0.1% to 17551.