MORNING COFFEE

Goldman Sachs and S&P Lower Europe Growth Forecast.   Economist at Goldman Sachs (GS) have lowered their growth prospects for the Eurozone and now expect negative growth in the 4^th quarter 2011 and 1^st quarter of 2012.  The report says that even Germany and France will experience a mild recession.  Goldman also expects the U.S. economy to expand +1.7% this year and +1.4% next year.  Also lowering their European forecast was S&P.  S&P dropped its 2012 outlook for Europe growth to +1.1% from +1.5%.  The company also now says that the chance of a double dip recession stands at 40%.

Upgrades

Helen of Troy (HELE): Wedbush raised their rating from Underperform to Neutral and placed a target price of $26.00 on the company.

Expedia (EXPE): Susquehanna raised their rating from Neutral to Positive and raised their target price from $28.00 to $30.00. Pre-market: 24.19 -0.12 (-0.49%)

Downgrades

American Express (AXP): Jefferies lowered their rating from Buy to Hold and lowered their target price from $53.00 to $50.00. Pre-market: 42.70 -0.78 (-1.79%)

Fiat S.p.A. ADS (FIATY): RBS lowered their rating from Buy to Hold.

Coverage Initiated

Johnson & Johnson (JNJ): Cowen initiated coverage with an Outperform rating. Pre-market: 61.56 -0.52 (-0.84%)

Express Scripts (ESRX): Oppenheimer initiated coverage with an Outperform rating. Pre-market: 35.74 +0.03 (0.08%)

Owens Corning (OC): Ticonderoga initiated coverage with a Neutral rating.

Markets
Futures at 8:35: Dow -0.99%. S&P -0.96%. Nasdaq -0.98%. Crude -3.08% to $75.22 Gold -0.34% to $1652.20.

Europe: London -2.67%. Paris -2.94%. Frankfurt -3.66%.

Asia: Japan -1.05%. Hong Kong -3.40%. China closed. India -1.77%.