MORNING COFFEE

Greek Bond Holders Could Take Big Hit. Jean-Claude Juncker, the head of the Eurozone's finance ministers said that Greek bondholders could take a 50% - 60% haircut.  This new figure is well above the 21% agreed to in the country's second bailout deal back in July. This is the first admission that the move is being considered.

Upgrades

Synaptics (SYNA): Collins Stewart raised their rating from Neutral to Buy and placed a target price of $40.00 on the company. Pre-market: 28.25 +0.76 (2.76%)

Sara Lee (SLE): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $17.00-$19.00 to $19.00-$21.00. Pre-market: 16.71 0.00 (0.00%)

Netflix (NFLX): Hudson Square raised their rating from Sell to Hold. Pre-market: 108.94 -2.68 (-2.40%)

Downgrades

Sprint Nextel (S): Argus lowered their rating from Buy to Hold. Pre-market: 2.21 -0.01 (-0.45%)

Legg Mason (LM): Sterne Agee lowered their rating from Neutral to Underperform and placed a target price of $32.00 on the company. Pre-market: 26.60 -0.55 (-2.03%)

Federated Investors (FII): Sterne Agee lowered their rating from Neutral to Underperform and placed a target price of $21.00 on the company.

Coverage Initiated

McDonalds (MCD): CLSA initiated coverage with a Buy rating and target price of $103.00. Pre-market: 88.30 -0.21 (-0.24%)

Yum! Brands (YUM): CLSA initiated coverage with a Buy rating and target price of $103.00.

Dow Chemical (DOW): Ticonderoga initiated coverage with a Buy rating and target price of $39.00.

Coverage Reiterated/Price Target Changed 

Morgan Stanley (MS): Ticonderoga reiterated their Buy rating and lowered their target price from $26.00 to $22.00. Pre-market: 15.03 -0.26 (-1.70%)

Expedia (EXPD): The Benchmark Company reiterated their Hold rating and lowered their target price from $36.00 to $32.00.

Markets: 
Futures at 6:41: Dow -0.33%. S&P -0.70%. Nasdaq -0.31%. Crude -0.88% to $84.66. Gold -0.39% to $1664.80.

Europe: London -0.80%. Paris -0.66%. Frankfurt -0.81%. 

Asia: Japan +1.95%. Hong Kong +2.43%. China +0.16%. India -0.13%.