MORNING COFFEE

U.S. Futures down on EU data.  U.S. stock futures on lower on poor EU economic data.  Eurozone inflation came in unchanged at 3% in October, while economist were looking for inflation to fall to just below 2%.  The unemployment rate rose to 10.2% missing estimates of a drop to 10% from the prior 10.1%. Additionally, Spain's economy recorded zero growth in Q3 2011 as the EU austerity programs slow domestic demand.  Also the OECD has cut its 2012 growth forecast for the EU to 0.3% from a prior 2%.

Upgrades

Marsh & McLennan (MMC):  Deutsche Bank raised their rating from Hold to Buy and placed a target price of $34.00 on the company.

Weyerhaeuser (WY): Deutsche Bank raised their rating from Sell to Hold and placed a target price of $19.00 on the company.

Downgrades

JB Hunt (JBHT): Stifel Nicolaus lowered their rating from Buy to Hold.

SanDisk (SNDK): Sterne Agee lowered their rating from Buy to Neutral and placed a target price of $58.00 on the company. Pre-market: 52.05 -1.33 (-2.49%)

Fossil (FOSL): Brean Murray lowered their rating from Buy to Hold. Pre-market: 106.45 -3.54 (-3.22%)

Standard Pacific (SPF): Raymond James lowered their rating from Market Perform to Underperform.

Canadian National Railroad (CNI): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Initiated

Kroger (KR): JP Morgan initiated coverage with a Neutral rating and target price of $25.00.

Earning Reports

Humana (HUM): Reported EPS of $2.54 beating estimates by +$0.51. Pre-market: 81.64 +1.29 (1.61%)

Shaw Group (SHAW): Reported EPS of -$0.44 missing estimates by -$0.98. Pre-market: 21.65 -0.53 (-2.39%)

TASER (TASR): Reported EPS of $0.02 beating estimates by +$0.01. Pre-market: 5.01 +0.17 (3.51%)

Markets: 
Futures at 8:25: Dow 0.0%. S&P -1.18%. Nasdaq -0.88%. Crude -1.35% to $92.69. Gold -0.55% to $1738.10. 

Europe: London -1.23%. Paris -1.79%. Frankfurt -1.85%. 

Asia: Japan -0.69% to 8988. Hong Kong -0.77% to 19865. China -0.21% to 2468. India -0.56% to 17705. 

MORNING COFFEE

EU debit deal being questioned. Just one day after the EU debt deal was announced some are questioning its effectiveness. Economists are pointing to Portugal’s real M1 deposits which have fallen to an annualized 21% over the past six months.  This is the same level that Greece experienced before it lost control of its economy.  M1 data is  a leading economic indicator for six months to a year ahead.  Additionally Italy sold €2.98B of 10-year notes priced to yield 6.06%, up from 5.86% last month.  The worry is that 7% is when other EU countries sought a bailout.

Upgrades:

Eli Lilly (LLY): First Global raised their rating from Market Perform to Outperform.

Downgrades:

Motorola Mobility (MII): ThinkEquity lowered their rating from Buy to Hold and placed a target price of $40.00 on the company.

Waste Management (WM): First Analysis lowered their rating from Overweight to Market Weight.

Iron Mountain (IRM): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed:

Baidu.com (BIDU): Brean Murray reiterated their Buy rating and raised their target price from $175.00 to $185.00.

Netflix (NFLX): Oppenheimer reiterated their Outperform rating and lowered their target price from $185.00 to $100.00.

Las Vegas Sands (LVS): Brean Murray reiterated their Buy rating and lowered their target price from $78.00 to $74.00.

Earning Reports:

Whirlpool (WHR): Reported EPS of $2.35 missing estimates by -$0.26.

Markets: 
Futures at 7:00: Dow -0.35%. S&P -0.4%. Nasdaq -0.4%. Crude -1.6% to $92.44. Gold -0.5% to $1738.30. 

Europe: London -0.3%. Paris 0.0%. Frankfurt +0.3%. 

Asia: Japan +1.4% to 9050. Hong Kong +1.7% to 20019. China +1.6% to 2473. India +3.0% to 17805. 

MORNING COFFEE

EU Debt Deal Set. Global markets are higher on the news that last night EU leaders agreed to an outline of a deal that they believe will solve the debt crisis. The deal has Private-sector holders of Greek debt taking a "voluntary" 50% cut.  If the deal was not accepted by the banks Luxembourg Prime Minister Jean-Claude Juncker said the leaders "wouldn't resist for one second to move toward a scenario of the total insolvency of Greece." Additional, the EU also agreed to increase the eurozone rescue fund to €1 trillion ($1.4 trillion) up from  €440 billion, and banks will be forced to raise another €106 billion to boost their Tier 1 capital.

Upgrades

Owens Corning (OC): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $36.00 on the company.

Cisco Systems (CSCO): UBS raised their rating from Neutral to Buy and raised their target price from $17.00 to $19.75.

Downgrades

Visa (V): FBR Capital lowered their rating from Outperform to Market Perform.

Advanced Micro Devices (AMD): Avian lowered their rating from Positive to Neutral.

Lockheed Martin (LMT): SunTrust lowered their rating from Buy to Neutral.

Coverage Reiterated/Price Target Changed

TJX (TJX): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $25.00 to $21.00.

Norfolk Southern (NSC): Stifel Nicolaus reiterated their Buy rating and raised their target price from $85.00 to $88.00.

Earning Reports

AFLAC (AFL): Reported EPS of $1.59 missing estimates by -$0.01

Airgas (ARG): Reported EPS of $1.03 beating estimates by +$0.01.

Ball Corp (BLL): Reported EPS of $0.79 in-line with estimates.

Bristol-Myers (BYM): Reported EPS of $0.61 beating estimates by +$0.03.

Celgene (CELG): Reported EPS of $1.02 beating estimates by +$0.07.

Colgate-Palmolive (CL): Reported EPS of $1.31 beating estimates by +$0.01.

Dow Chemical (DOW): Reported EPS of $0.62 missing estimates by -$0.02.

Exxon Mobil (XOM): Reported EPS of $2.13 in-line with estimates.

Proctor & Gamble (PG): Reported EPS of $1.03 in-line with estimates.

Markets: 
Futures at 7:00: Dow +1.75%. S&P +2.1%. Nasdaq +2.0%. Crude +2.6% to $92.56. Gold -0.5% to $1715.30. 

Europe: London +2.5%. Paris +4.8%. Frankfurt +4.4%. 

Asia: Japan +2.0% to 8927. Hong Kong +3.3% to 19689. China +0.3% to 2436. India +0.2% to 17289.