MORNING COFFEE

Worlds Economic Growth Forecast Lowered. The IMF in their latest World Economic Outlook report lowered their global growth forecasts.  IMF chief economist said that the world economy has entered a "dangerous new phase."  He also said that "The recovery has weakened considerably. Strong policies are needed to improve the outlook and reduce the risks."  Estimated GDP growth in the U.S. was severely cut from 2.5% to 1.5% for 2012 and the EU from 1.7% to 1.1%. The IMF also warned of "severe repercussions" to the global economy unless the Eurozone strengthens its banking system and the U.S. straightens out its finances.

Upgrades

L'Oreal (LRLCY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

AutoZone (AZO): Gabelli lowered their rating from Buy to Hold and placed a target price of $341.00 on the company. Pre-market: 326.00 -1.75 (-0.53%)

VeriSign (VRSN): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $38.00 to $35.00. Pre-market: 28.21 -0.23 (-0.81%) 

Unilever (UN): Jefferies lowered their rating from Buy to Hold. Pre-market: 31.03 -0.04 (-0.13%)

Dollar General (DG): Deutsche Bank initiated coverage with a Hold rating and target price of $38.00.

Jefferies Group (JEF): Ticonderoga lowered their rating from Buy to Neutral. Pre-market: 13.85 -0.10 (-0.72%)

Coverage Initiated

Expeditors International of Washington (EXPD): Lazard Capital initiated coverage with a Buy rating and target price of $55.00 on the company.

EOG Resources (EOG): Stifel Nicolaus initiated coverage with a Hold rating.

Coverage Reiterated/Price Target Changed

Newell Rubbermaid (NWL): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $21.00 to $18.00.

Adobe Systems (ADBE): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $42.00 to $38.00. Pre-market: 25.99 +1.35 (5.48%)

Dish Network (DISH): Brean Murray reiterated their Buy rating and raised their target price from $35.00 to $38.00.

Jefferies Group (JEF): FBR Capital reiterated their Market Perform rating and lowered their target price from $23.00 to $15.00. Pre-market: 13.85 -0.10 (-0.72%)

Discover Financial Services (DFS): RBC Capital Markets reiterated their Top Pick rating and raised their target price from $30.00 to $33.00.

Earning Reports

General Mills (GIS): Reported EPS of $0.64 beating estimates by +$0.02.

Adobe Systems (ADBE): Reported EPS of $0.55 beating estimates by +$0.01. Pre-market: 25.99 +1.35 (5.48%)

Oracle (ORCL): Reported EPS of $0.48 beating estimates by +$0.01. Pre-market: 29.77 +1.42 (5.01%)

Markets
Futures at 8:58: Dow -0.25%. S&P +0.03%. Nasdaq -0.19%.Crude -0.93% to $86.10. Gold -0.40% to $1801.80.

Europe: London -0.54%. Paris -0.27%. Frankfurt -1.16%. 

Asia: Japan +0.23%. Hong Kong -1.00%. China +2.66%. India -0.20%.