MORNING COFFEE

Fear Of Default Hits Markets. European stocks and U.S. futures are sharply lower, on fears the Eurozone debt crisis has gotten worse. European bank stocks are getting hit very hard. Over the weekend Greece said it will implement €2B in new budget cuts, but economists are still concerned that Greece will default on its debt.  If Greece defaults some are also concerned that it could spread to the other PIIGS in the EU. The PIIGS are other nations that having a debit crisis.  They include Portugal, Italy, Ireland, Greece and Spain.  German FM Philipp Roesler said Europe could no longer rule out an "orderly default."

Upgrades

 Monsanto (MON): Atlantic Equities raised their rating from Neutral to Overweight and raised their target price from $70.00 to $75.00. Pre-market: 64.02 -0.99 (-1.52%)

Oracle (ORCL): Goldman Sachs raised their rating from Buy to Conviction Buy and placed a target price of $33.00 on the company. Pre-market: 25.75 -0.25 (-0.96%)  

Downgrades

Cree(CREE): Wunderlich lowered their rating from Hold to Sell and lowered their target price from $34.00 to $25.00. Pre-market: 29.55 -1.79 (-5.71%)

Coverage Reiterated/Price Target Changed

Altera (ALTR): Auriga reiterated their Buy rating and lowered their target price from $53.00 to $42.00.

UPS (UPS): HSBC Securities reiterated their Neutral rating and lowered their target price from $100.00 to $82.00. Pre-market: 63.45 -0.77 (-1.20%)

Xilinx (XLNX) Auriga reiterated their Buy rating and lowered their target price from $39.00 to $35.00.

Markets:
Futures at 7:00: Dow -1.46%. S&P -1.83%. Nasdaq -1.69%.  Crude -1.31% to $86.13. Gold -0.73% to $1846.00.

Europe: London -2.73%. Paris -4.81%. Frankfurt -3.83%.

Asia: Japan -2.31%. Hong Kong -4.21%. China closed. India -2.17%.