MORNING COFFEE

Treasury Yields Fall, Market Set to Open Lower. Stock markets worldwide fell after S&P lowered the U.S. debt rating from AAA to AA+.  Moody’s and Fitch have also made announcements of possible downgrades.  Despite the downgrade, Treasury yields are lower as overseas investors flocked Treasury bonds.  This gave credence that even with the downgrade investors view Treasury bond as one of the safest investments. Gold also benefited passing $1,700oz for the first time and hitting $1,714. In currency trading the Swiss franc and the yen rose against the dollar and the euro. 10yr Note +20/32 2.494%, 30yr Bond +24/32 3.813%

Upgrades

Proctor & Gamble (PG): Bernstein raised their rating from Market Perform to Outperform and raised their target price from $69.00 to $72.00. Pre-market: 60.13 -0.46 (-0.76%)

Coca-Cola (KO): Goldman Sachs raised their rating from Buy to Conviction Buy and placed a target price of $77.00 on the company. Pre-market: 65.95 -0.82 (-1.23%)

Berkshire Hathaway (BRK.A / BRK.B): Keefe Bruyette raised their rating from Market Perform to Outperform and placed a target price of $133,000.

Royal Dutch Shell (RDS.A): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $80.00 on the company. Pre-market: 62.56 -1.84 (-2.86%)

EMC (EMC): Auriga raised their rating from Hold to Buy and placed a target price of $80.00 on the company. Pre-market: 22.51 -0.48 (-2.09%)

TJX Co. (TJX): Goldman Sachs raised their rating from Buy to Conviction Buy and raised their target price from $61.00 to $66.00.

Wells Fargo (WFC): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $33.00 on the company. Pre-market: 24.59 -0.62 (-2.46%)

Downgrades

Texas Instruments (TXN): FBR Capital lowered their rating from Outperform to Market Perform and placed a target price of $80.00 on the company. Pre-market: 26.45 -0.74 (-2.72%)

CSX Corp. (CSX): RW Baird lowered their rating from Outperform to Neutral and lowered their target price from $31.00 to $28.00. Pre-market: 21.00 -0.97 (-4.42%)

Earning Reports

Dynegy (DYN): Reported EPS of -$0.95 missing estimates by -$0.45. Pre-market: 3.97 -0.93 (-18.98%)

Tyson Foods (TSN): Reported EPS of $0.46 beating estimates by +$0.06. Pre-market: 16.30 -0.01 (-0.06%)

US Cellular (USM): Reported EPS of $0.46 beating estimates by +$0.43.

Futures at 8:22: Dow -1.74%. S&P -1.99%. Nasdaq -2.0%. Crude -3.67% to $83.71. Gold +3.43% to $1708.50. 

Europe: London -1.74%. Paris -1.75%. Frankfurt -2.22%. 

Asia: Japan -2.18% to 9098. Hong Kong -2.17% to 20491. China -3.79% to 2527. India -1.82% to 16990.