MORNING COFFEE

Kraft To Split Into Two. Kraft (KFT) announced that they will split into two companies. The company plans to spin off its North American grocery business to its shareholders which would divide the company into two parts: grocery operations and global snacks business.  The company also reported Q2 earnings that beat forecasts and raised its 2011 outlook. Pre-market: 36.81 +2.51 (7.32%)

Upgrades

Sprint Nextel (S): Stifel Nicolaus raised their rating from Sell to Hold. Pre-market: 4.14 -0.01 (-0.24%)

McDonalds (MCD): Piper Jaffray raised their rating from Neutral to Overweight and raised their target price from $87.00 to $98.00. Pre-market: 85.50 -0.04 (-0.05%)

Tiffany & Co. (TIF): Goldman Sachs raised their rating from Sell to Neutral and placed a target price of $68.00 on the company. Pre-market: 72.76 -0.31 (-0.42%)

Downgrades

Hormel Foods (HRL): Goldman Sachs lowered their rating from Neutral to Sell. Pre-market: 27.78 -0.84 (-2.94%)

Coverage Reiterated/Price Target Changed

MasterCard (MA): FBR Capital reiterated their Outperform rating and raised their target price from $330.00 to $390.00. Pre-market: 334.03 -4.44 (-1.31%)

Molex (MOLX): Longbow reiterated their Buy rating and lowered their target price from $32.00 to $29.00.

Earning Reports

Cardinal Health (CAH): Reported EPS of $0.59 beating estimates by +$0.01. After Hours: 42.19 0.00 (0.00%)

CBOE Holdings (CBOE): Reported EPS of $0.36 beating estimates by +$0.03. After Hours: 22.77 -0.11 (-0.48%)

Church & Dwight (CHD): Reported EPS of $0.57 beating estimates by +$0.01.

CVS Caremark (CVS): Reported EPS of $0.65 in-line with estimates. After Hours: 36.21 0.00 (0.00%)

Fortune Brands (FO): Reported EPS of $0.93 missing estimates by -$0.07. After Hours: 57.60 -0.34 (-0.59%)

Southwest Air (LUV): Reported EPS of $0.15 missing estimates by -$0.05.

Markets

Futures at 8:01: Dow -0.53%. S&P -0.80%. Nasdaq -0.73%. Crude -1.15% to $90.86. Gold +0.23% to $1670.20. 

Europe: London -1.87%. Paris -0.80%. Frankfurt -0.67%. 

Asia: Japan +0.23% to 9659. Hong Kong -0.49% to 21885. China +0.21% to 2684. India -1.38% to 17693.