MORNING COFFEE

S&P Cuts Italy’s Credit Rating. S&P announced that it has cut Italy's credit rating to A from A+, with an negative outlook.  The rating agency noted the current political situation is limiting the country’s ability to respond to its debt crisis.  In other EU news, reports say that Greek Prime Minister George Papandreou is considering holding a referendum on whether to continue with austerity or exit the euro. Greek officials are denying the report.

Upgrades

Ralph Lauren (RL): Cowen raised their rating from Neutral to Outperform. Pre-market: 151.75 +1.23 (0.82%)

Downgrades

Moody’s (MCO): The Benchmark Company lowered their rating from Buy to Hold and placed a target price of $29.00 on the company. Pre-market: 31.09 -1.61 (-4.92%)

Marvell  Tech (MRVL): JMP Securities lowered their rating from Outperform to Market Perform. Pre-market: 15.12 -0.12 (-0.79%)

Coverage Initiated

Abbott Labs (ABT): Jefferies initiated coverage with a Buy rating and target price of $60.00.

VMware (VMW): Merriman Jefferies initiated coverage with a Buy rating and target range of $125.00 to $135.00. Pre-market: 92.30 +0.50 (0.54%)

Noble Energy (NBL): Deutsche Bank initiated coverage with a Buy rating and target price of $120.00. Pre-market: 80.50 +1.02 (1.28%)

Carbonite (CARB): Canaccord Genuity initiated coverage with a Buy rating and target price of $16.00. Pre-market: 13.30 +0.57 (4.48%)

Carbonite (CARB): Oppenheimer initiated coverage with an Outperform rating and target price of $17.00. Pre-market: 13.30 +0.57 (4.48%)

Coverage Reiterated/Price Target Changed 

Apple (AAPL): Wedbush reiterated their Outperform rating and raised their target price from $510.00 to $530.00. Pre-market: 414.30 +2.67 (0.65%)

FedEx (FDX): Dahlman Rose reiterated their Buy rating and lowered their target price from $122.00 to $120.00. Pre-market: 75.90 +0.14 (0.18%)

Earning Reports

AutoZone (AZO): Reported EPS of $7.18 beating estimates by +$0.22. Pre-market: 329.02 -2.93 (-0.88%)

ConAgra (CAG): Reported EPS of $0.29 missing estimates by -$0.02. Pre-market: 23.04 -0.35 (-1.50%)

FactSet (FDS): Reported EPS of $0.96 beating estimates by +$0.01. Pre-market: 90.00 +1.19 (1.34%)

Jefferies Group (JEF): Reported EPS of $0.30 beating estimates by +$0.03. Pre-market: 13.91 -0.21 (-1.49%)

Markets
Futures at 8:57: Dow +0.42% S&P +0.37%. Nasdaq +0.73%. Crude +0.61% to $86.22. Gold +0.67% to $1791.00

Europe: London +0.98%. Paris +0.65%. Frankfurt +1.91%.

Asia: Japan -1.61%. Hong Kong +0.51%. China +0.41%. India +2.11%.