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.