MORNING COFFEE

Two Rating Agencies Affirm AAA Rating. Yesterday President Obama signed the debt deal passed by both houses which raised the debt limit and cut some spending.  Now both Moody's and Fitch have confirmed the U.S. will keep its AAA rating. Moody’s did assign a negative outlook to the rating and both rating agencies said that more deficit-reduction measures are needed.  Analysts will now be watching S&P, since they had stated that they would lower the U.S.’s AAA credit rating if meaningful cuts were not made to control spending.

Upgrades

Allscripts-Misys Healthcare (MDRX): Auriga raised their rating from Hold to Buy and placed a target price of $22.00 on the company. After Hours: 17.02 +0.28 (1.67%)

Diageo PLC (DEO): Deutsche Bank raised their rating from Hold to Buy. Pre-market: 80.05 +0.60 (0.76%)

Fiserv (FISV): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $68.00 to $70.00.

Occidental Petroleum (OXY): Societe Generale raised their rating from Hold to Buy and placed a target price of $108.00 on the company. After Hours: 94.30 -0.30 (-0.32%)

Downgrades

Ford (F): Goldman Sachs lowered their rating from Conviction Buy to Buy and lowered their target price from $20.00 to $17.00. Pre-market: 11.84 -0.01 (-0.08%)

Leap Wireless (LEAP): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $19.00 to $11.00. After Hours: 10.27 0.00 (0.00%)

MetroPCS (PCS): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $22.00 to $10.00. After Hours: 10.17 -0.09 (-0.88%)

Texas Instruments (TXN): Sterne Agee lowered their rating from Buy to Neutral. Pre-market: 29.10 0.00 (0.00%)

Coverage Reiterated/Price Target Changed

Allscripts-Misys Healthcare (MDRX): FBR Capital reiterated their Market Perform rating and lowered their target price from $22.00 to $19.00. After Hours: 17.02 +0.28 (1.67%)

Emerson (EMR): FBR Capital reiterated their Market Perform rating and lowered their target price from $60.00 to $57.00. After Hours: 47.16 +0.10 (0.21%)

Coach (COH): Needham reiterated their Buy rating and raised their target price from $68.00 to $74.00. After Hours: 60.71 -0.32 (-0.52%)

Earning Reports

Agrium (AGU): Reported EPS of $4.56 beating estimates by +$0.26. After Hours: 86.00 +0.38 (0.44%)

Comcast (CMCSA): Reported EPS of $0.42 beating estimates by +$0.01. Pre-market: 22.97 +0.24 (1.06%)

Constellation Energy (CEG): Reported EPS of $0.76 missing estimates by -$0.09.

Garmin (GRMN): Reported EPS of $0.63 missing estimates by -$0.04. Pre-market: 27.00 -4.53 (-14.37%)

Marsh McLennan (MMC): Reported EPS of $0.50 beating estimates by +$0.02.

RR Donnelley & Sons (RRD): Reported EPS of $0.53 beating estimates by +$0.01.

Time Warner (TWX): Reported EPS of $0.60 beating estimates by +$0.04. Pre-market: 32.16 -1.84 (-5.41%)

Futures at 7:30: Dow +0.38%. S&P +0.38%. Nasdaq +0.39%. Crude -0.67% to $93.18. Gold +1.48% to $1668.90.

Europe: London -1.27%. Paris -0.56%. Frankfurt -0.96%. 

Asia: Japan -2.11% to 9637. Hong Kong -1.91% to 21993. China -0.03 at 2678. India -0.94% to 17941.