MORNING COFFEE

France’s Economy Stalls. Unexpectedly the French Q2 GDP reported zero growth versus economist estimates for +0.3% growth in their economy.  The GDP number was not helped by the fact that household consumption dropped 0.7%. Fears are continuing about the government’s ability to cut the deficit and maintain the county’s AAA credit rating.

Upgrades

PETsMART (PETM): Oppenheimer raised their rating from perform to Outperform and placed a target price of $49.00 on the company. After Hours: 40.20 -0.26 (-0.63%)

Bed Bath & Beyond (BBBY): Oppenheimer raised their rating from perform to Outperform and raised their target price from $59.00 to $63.00. Pre-market: 53.35 +0.37 (0.70%)

AutoZone (AZO): Oppenheimer raised their rating from perform to Outperform and placed a target price of $332.00 on the company.

Oracle (ORCL): CLSA raised their rating from Buy to Outperform and placed a target price of $36.00 on the company. Pre-market: 27.79 +0.09 (0.32%)

Becton Dickinson (BDX): Mizuho raised their rating from Neutral to Outperform and raised their target price from $85.00 to $87.00.

Downgrades

DeVry (DV): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $71.00 to $53.00. After Hours: 48.70 -4.69 (-8.78%)

Eastman Chemical (EMN): Goldman Sachs lowered their rating from Neutral to Sell and placed a target price of $89.00 on the company. Pre-market: 83.48 -0.54 (-0.64%)

Adobe Systems (ADBE): RBC Capital lowered their rating from Sector Perform to Underperform and lowered their target price from $32.00 to $22.00. Pre-market: 23.75 -0.25 (-1.04%)

BP PLC (BP): Goldman Sachs lowered their rating from Buy to Neutral. Pre-market: 38.83 -0.87 (-2.19%)

Coverage Initiated

ITT Educational (ESI): Wunderlich initiated coverage with a Hold rating and target price of $82.00. Pre-market: 77.61 +1.58 (2.08%)

Coverage Reiterated/Price Target Changed

DeVry (DV): FBR Capital reiterated their Outperform rating and lowered their target price from $69.00 to $64.00. After Hours: 48.70 -4.69 (-8.78%)

Earning Reports

JC Penney (JCP): Reported EPS of $0.07 in line with estimates. Pre-market: 26.87 +0.04 (0.15%)

Markets

Futures at 7:58: Dow +0.65%. S&P 0.53%. Nasdaq +0.29%. Crude +0.23% to $85.92. Gold +0.18% to $1754.60. 

Europe: London +1.71%. Paris +2.08%. Frankfurt +2.42%. 

Asia: Japan -0.20% to 8964. Hong Kong +0.13% to 19620. China +0.45% to 2593. India -1.29% to 16840.