MORNING COFFEE

Stocks Set To Open Lower Again. Stock sold off again in Europe and Asia on worries about the EU’s economic growth and the health of European banks.  Additionally, U.S. stocks are set to open lower on fears of what is occurring overseas and a string of bad economic reports.  Yesterday despite the recent downgrade in U.S. debt from AAA to AA investors are flocking to Treasury’s.  At open point yesterday the 10 year notes yield fell below 2.0%.  We have not seen those levels since the 1960’s. Some economist are now saying that there is a 50% chance for another recession in the U.S. 10yr Note -14/32 2.113%, 30yr Bond -15/32 3.445%

Upgrades

Dell (DELL): Needham raised their rating from Hold to Buy and placed a target price of $17.00 on the company. Pre-market: 13.75 -0.01 (-0.08%)

Coach (COH): KeyBanc raised their rating from Hold to Buy and placed a target price of $60.00 on the company.

Downgrades

Hewlett-Packard (HPQ): Needham lowered their rating from Buy to Underperform. Pre-market: 24.72 -4.79 (-16.23%)

Hewlett-Packard (HPQ): Robert Baird lowered their rating from Outperform to Neutral and lowered their target price from $51.00 to $30.00. Pre-market: 24.72 -4.79 (-16.23%)

Charles Schwab Corp. (SCHW): Macquarie lowered their rating from Outperform to Neutral and lowered their target price from $16.00 to $13.00.

Coverage Initiated

Dell (DELL): Ticonderoga initiated coverage with a Sell recommendation and target price of $9.25. Pre-market: 13.75 -0.01 (-0.08%)

Cree (CREE): Ticonderoga initiated coverage with a Buy recommendation and target price of $39.00.

Coverage Reiterated/Price Target Changed

Hewlett-Packard (HPQ): Auriga reiterated their Hold rating and lowered their target price from $45.00 to $43.00. Pre-market: 24.72 -4.79 (-16.23%)

Hewlett-Packard (HPQ): ISI Group reiterated their Hold rating and lowered their target price from $40.00 to $34.00. Pre-market: 24.72 -4.79 (-16.23%)

Aeropostale (ARO): Needham reiterated their Buy rating and lowered their target price from $24.00 to $15.00. Pre-market: 11.10 -1.39 (-11.13%)

Aeropostale (ARO): Oppenheimer reiterated their Outperform rating and lowered their target price from $16.00 to $14.00. Pre-market: 11.10 -1.39 (-11.13%)

Market

Futures at 8:16: Dow -1.0%. S&P -1.0%. Nasdaq -0.44%. Crude -0.87% to $81.66. Gold +1.97% to $1858.70. 

Europe: London -1.75%. Paris -1.56%. Frankfurt -2.59%. 

Asia: Japan -2.51% to 8719. Hong Kong -3.08% to 19400. China -0.98% to 2534. India -1.99% to 16142.