MORNING COFFEE

World Markets Sell Off. Stock markets worldwide are selling off on poor economic data that indicates China’s economy is slowing down and that the EU along with the U.S. could be heading for another recession.  Yesterday the Fed announced Operation Twist, in which the Fed will swap $400 billion of Treasuries into longer maturities in a range of 6-30 years. The hopes are that the action out help to reduce long term rates but the street reacted negatively to the news.

Upgrades

Bristol-Myers (BMY): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $30.00 to $37.00.

Netflix (NFLX): Wedbush raised their rating from Underperform to Outperform and raised their target price from $110.00 to $155.00.

Yahoo! (YHOO): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $18.00 on the company.

Downgrades

Urban Outfitters (URBN): Wedbush lowered their rating from Neutral to Underperform and lowered their target price from $30.00 to $20.00.

Under Armour (UA): Needham lowered their rating from Buy to Hold.

Procter & Gamble (PG): SunTrust lowered their rating from Buy to Neutral.

Coverage Initiated

Stryker (SYK): Kaufman Bros initiated coverage with a Buy rating and target price of $57.00 on the company.

St Jude Medical (STJ): Kaufman Bros initiated coverage with a Buy rating and target price of $50.00 on the company.

Boston Scientific (BSX): Kaufman Bros initiated coverage with a Hold rating and target price of $7.00 on the company.

Zimmer Hldgs (ZMH): Kaufman Bros initiated coverage with a Hold rating and target price of $57.00 on the company.

Earning Reports

CarMax (KMX): Reported EPS of $0.49 missing estimates by -$0.02.

Discover Financial Services (DFS): Reported EPS of $1.18 beating estimates by +$0.23.

FedEx (FDX): Reported EPS of $1.46 beating estimates by +$0.01.

Rite Aid (RAD): Reported EPS of -$0.11 beating estimates by +$0.06.

Markets
Futures at 9:12: Dow -2.48%. S&P -2.64%. Nasdaq -2.29%. 10-yr +0.47%. Euro -1.05% vs. dollar. Crude -4.46% to $82.09. Gold -3.05% to $1750.65.

Europe: London -4.63%. Paris -5.21%. Frankfurt -4.45%. 

Asia: Japan -2.07%. Hong Kong -4.85%. China -2.78%. India -4.13%.