MORNING COFFEE

Stock Tumble On Greek News. World markets are in freefall after Greece announced it would hold a referendum on the austerity measures it would have to take in order to receive the EU-IMF bailout proposal announced just last week. Polls show Greeks have a negative view of the package, and would vote “no” on the package.   This brings Greece closer to defaulting on their debt and may encourage other PIIGS nations to do the same. 

Upgrades

Citigroup (C): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $45.00 to $48.00. Pre-market: 29.00 -2.59 (-8.20%)

Downgrades

Legg Mason (LM): Ticonderoga lowered their rating from Hold to Sell and placed a target price of $22.00 on the company. Pre-market: 26.53 -0.97 (-3.53%)

Barclays PLC (BCS): UBS lowered their rating from Buy to Neutral and placed a target price of $13.85 on the company. Pre-market: 11.13 -1.38 (-11.03%)

Alcatel-Lucent (ALU): MKM Partners lowered their rating from Buy to Neutral and placed a target price of $3.00 on the company. Pre-market: 2.47 -0.27 (-9.85%)

Alcatel-Lucent (ALU): JP Morgan Partners lowered their rating from Overweight to Neutral. Pre-market: 2.47 -0.27 (-9.85%)

Canadian Pacific Railway (CP): BMO Capital lowered their rating from Outperform to Market Perform and placed a target price of $68.00 on the company. Pre-market: 60.00 -1.88 (-3.04%)

Telefonica (TEF): Deutsche Bank lowered their rating from Buy to Hold. Pre-market: 20.15 -1.22 (-5.71%)

Coverage Initiated

Valero Energy (VLO): Global Hunter initiated coverage with an Accumulate rating and target price of $33.00. Pre-market: 24.33 -0.27 (-1.10%)

Earning Reports

Baker Hughes (BHI): Reported EPS of $1.18 missing estimates by -$0.02. Pre-market: 52.40 -5.59 (-9.64%)

Emerson (EMR): Reported EPS of $1.01 beating estimates by +$0.05. Pre-market: 47.03 -1.09 (-2.27%)

Henry Schein (HSIC): Reported EPS of $0.99 missing estimates by -$0.01. Pre-market: 64.00 -5.32 (-7.67%)

MetroPCS (PCS): Reported EPS of $0.19 missing estimates by -$0.04. Pre-market: 7.90 -0.60 (-7.06%)

Pfizer (PFE): Reported EPS of $0.62 beating estimates by +$0.07. Pre-market: 19.13 -0.13 (-0.67%)

Markets: 
Futures at 8:53: Dow -2.13%. S&P -3.16%. Nasdaq -2.61%. Crude -3.25% to $90.13. Gold -1.80% to $1694.00. 

Europe: London -3.31%. Paris -5.70%. Frankfurt -6.06%. 

Asia: Japan -1.70% to 8836. Hong Kong -2.49% to 19370. China +0.07% to 2470. India -1.27% to 17481.