MORNING COFFEE

Moody’s Cuts U.K. Banks Ratings.  Rating agency Moody's (MCO) has downgraded 12 U.K. financial institutions.  The company cut Lloyds TSB (LYG) and Santander U.K. (STD) by a notch, and cut Royal Bank of Scotland (RBS) by two notches. The rating cuts are occurring as some traders are questioning U.K. bank exposure to the Eurozone debt crisis. LYG Pre-market: 2.18 +0.01 (0.46%), STD Pre-market: 8.60 +0.13 (1.53%) RBS Pre-market: 7.47 -0.17 (-2.23%)

Nonfarm Payrolls To Be Released. The September nonfarm payroll data is due to be released this morning.  Wall Street economists are expecting 55,000 new jobs to have been created.  August numbers where a big disappointment and the unemployment rate stands at a very high 9.1%. Missing estimates again will be a big disappointment to the market.  The report will come one day after President Obama told Congress to pass his jobs bill now.  The bill is currently not up for a vote since he does not have enough Democratic votes for it to pass.

Upgrades

Dean Foods (DF): Bernstein raised their rating from Market Perform to Outperform and raised their target price from $12.00 to $14.00. Pre-market: 9.30 +0.21 (2.31%)

Wynn Resorts (WYNN): Credit Suisse raised their rating from Neutral to Outperform and a target price of $167.00. Pre-market: 136.70 +4.12 (3.11%)

Downgrades

Illumina (ILMN): UBS lowered their rating from Buy to Neutral and lowered their target price from $80.00 to $32.00. Pre-market: 27.20 -12.73 (-31.88%)

Illumina (ILMN): Deutsche Bank lowered their rating from Buy to Neutral and lowered their target price from $52.50.00 to $30.00. Pre-market: 27.20 -12.73 (-31.88%)

Illumina (ILMN): Piper Jaffray lowered their rating from Overweight to Neutral and lowered their target price from $85.00 to $35.00. Pre-market: 27.20 -12.73 (-31.88%)

Coverage Initiated

Walt Disney (DIS): JP Morgan initiated coverage with an Overweight rating and target price of $42.00. Pre-market: 32.35 +0.32 (1.00%)

Huntington Ingalls (HII): UBS initiated coverage with a Neutral rating and target price of $24.00.

Electronic Arts (ERTS): Robert W. Baird initiated coverage with a Neutral rating and target price of $25.00.

Take-Two (TTWO): Robert W. Baird initiated coverage with a Neutral rating and target price of $15.00.

Markets: 
Futures at 8:35: Dow +0.73%. S&P +0.86%. Nasdaq +0.83%. Crude -0.39% to $82.26. Gold +0.02% to $1653.20. 

Europe: London +1.13%. Paris +1.43%. Frankfurt +1.78%. 

Asia: Japan +0.98% to 8606. Hong Kong +3.11% to 17707. China closed. India +2.78% to 16233.