MORNING COFFEE

Fed Says Economy Expanding Slower Than Expected. Yesterday the Fed announced that they would keep interest rates unchanged at 0% - 0.25%.  It was noted that the Fed changed their wording on how long they would maintain the record low interest rates from “an extended period” to give specific time frame of mid 2013. The Fed also gave a more pessimistic economic outlook saying that the economy was expanding "considerably slower" than expected.  In their statement the Fed said it discussed a "range of policy tools" it is "prepared to employ" to help the struggling economy if needed. 10yr Note +9/32 2.207%, 30yr Bond +14/32 3.608%

Upgrades

Altria (MO): Davenport raised their rating from Neutral to Buy and placed a target price of $31.00 on the company. Pre-market: 25.03 -0.15 (-0.60%)

Newmont Mining (NEM): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $84.00 on the company. Pre-market: 56.09 +0.69 (1.25%)

Check Point Software (CHKP): Macquarie raised their rating from Neutral to Outperform and placed a target price of $59.00 on the company.

Goldman Sachs Group (GS): Rochdale raised their rating from Sell to Neutral and placed a target price of $120.00 on the company. Pre-market: 121.28 -1.45 (-1.18%)

ENSCO (ESV): Global Hunter raised their rating from Accumulate to Buy and maintain their target price of $62.00 on the company.

Eli Lilly (ELI): Argus raised their rating from Hold to Buy and placed a target price of $41.00 on the company.

Cicso Systems (CSCO): Gleacher raised their rating from Neutral to Buy and placed a target price of $20.00 on the company. Pre-market: 14.01 -0.05 (-0.32%)

Downgrades

Walt Disney (DIS): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $42.00 to $39.00. Pre-market: 33.18 -1.52 (-4.38%)

Costco (COST): Jefferies lowered their rating from Buy to Hold and lowered their target price from $93.00 to $71.00. Pre-market: 74.15 -0.51 (-0.68%)

Target Corp (TGT): Jefferies lowered their rating from Buy to Hold and lowered their target price from $59.00 to $11.00. Pre-market: 48.76 -0.19 (-0.39%)

Coverage Initiated

Micron Tech (MU): Bernstein initiated coverage with a Market Perform rating and target price of $7.60. Pre-market: 6.10 -0.09 (-1.45%)

Coverage Reiterated/Price Target Changed

DISH Network (DISH): Brean Murray reiterated their Buy rating and lowered their target price from $38.00 to $35.00. Pre-market: 22.28 -0.30 (-1.33%)

Jefferies Group (JEF): Ticonderoga reiterated their Buy rating and lowered their target price from $26.00 to $23.00.

Earning Reports

Kelly Services (KELYA): Reported EPS of $0.50 beating estimates by +$0.22. Pre-market: 14.10 +0.57 (4.21%)

Macy's (M): Reported EPS of $0.55 beating estimates by +$0.07. Pre-market: 26.25 +0.81 (3.18%)

Polo Ralph Lauren (RL): Reported EPS of $1.90 beating estimates by +$0.44. Pre-market: 131.75 +11.90 (9.93%)

Markets

Futures at 8:34: Dow -0.98%. S&P -1.23%. Nasdaq -1.45%. Crude +3.46% to $82.04. Gold +1.41% to $1766.60. 

Europe: London -0.26%. Paris -0.81%. Frankfurt +0.88%. 

Asia: Japan +1.05% to 9039. Hong Kong +2.34% to 19784. China +0.91% to 2549. India +1.62% to 17131.