MORNING COFFEE

World Markets Hit Bear Territory.   The MSCI All-Country World Index of 45 nations hit bear market territory for the first time in over two years.  Markets worldwide fell yesterday on concerns about the EU debt crisis, an economic slowdown in China.  In addition, traders were disappointment over the Feds latest trick they pulled out of a hat to stimulate the U.S. economy called Operation Twist.  The Dow, S&P and Nasdaq all closed down more than 3%. Economically sensitive sectors got slammed and precious metals, copper, and oil all got hit hard. This morning both Asian and European markets are continuing their decline today.

Upgrades

Oceaneering Intl (OII): Global Hunter Securities raised their rating from Neutral to Buy and placed a target price of $44.00 on the company. Pre-market: 36.70 -1.31 (-3.45%)

Royal Dutch Shell (RDS.A): The Benchmark Company raised their rating from Sell to Hold. Pre-market: 60.23 -1.42 (-2.30%)

Downgrades

National Oilwell Varco (NOV): Global Hunter Securities lowered their rating from Buy to Accumulate and lowered their target price from $97.00 to $70.00. Pre-market: 53.33 -1.08 (-1.98%)

PepsiCo (PEP): Stifel Nicolaus lowered their rating from Buy to Hold. Pre-market: 60.66 -0.26 (-0.43%)

Coverage Initiated

Xilinx (XLNX): William Blair initiated coverage with an Outperform rating.

Under Armour (UA): Argus initiated coverage with a Buy rating and target price of $90.00. Pre-market: 70.40 -0.12 (-0.17%)

McCormick (MKC): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $52.00.

Edison (EIX): FBR Capital initiated coverage with an Outperform rating and target price of $41.00.

Coverage Reiterated/Price Target Changed

Nike (NKE): FBR Capital reiterated their Outperform rating and raised their target price from $97.00 to $100.00. Pre-market: 88.00 +3.82 (4.54%)

Earning Reports

Nike (NKE): Reported EPS of $1.36 beating estimates by +$0.14. Pre-market: 88.00 +3.82 (4.54%)

Cintas (CTAS): Reported EPS of $0.52 beating estimates by +$0.05. Pre-market: 28.50 -0.27 (-0.94%)

Finish Line (FINL): Reported EPS of $0.39 beating estimates by +$0.01. Pre-market: 19.11 +0.68 (3.69%)

KB Homes (KBH): Reported EPS of -$0.13 beating estimates by +$0.02. Pre-market: 5.76 +0.04 (0.70%)

Markets
Futures at 9:04: Dow -0.82%.  S&P -0.74%.  Nasdaq -0.71%. 10-yr -0.03%. Euro -0.05% vs. dollar. Crude -2.25% to $78.72 Gold -2.75% to $1694.00.

Europe: London -0.74%. Paris -1.12%. Frankfurt -1.18%.

Asia: Japan closed. Hong Kong -1.36%. China -0.41%. India -1.22%.