MORNING COFFEE

EU stocks Fall On Italian Debt Concerns. European markets are lower along with U.S. futures on concerns about Italian debt.  The yield on the Italian 10-year government bond has surged past the crucial 7% mark, which is the yield were other EU counties sought help to preventing on their debt. At midday the yield had risen to 7.447%.  The ECB is buying bonds in "decent sizes" in a hope to prevent a catastrophe for Italy and the eurozone.

Upgrades

H & R Block (HRB): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $19.00 on the company. Pre-market: 15.28 -0.25 (-1.61%)

Rite Aid (RAD): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $1.00 to $1.50. Pre-market: 1.13 0.00 (0.00%)

Downgrades

McCormick & Schmick’s Seafood Restaurants (MSSR): DA Davidson lowered their rating from Buy to Neutral and placed a target price of $8.75 on the company.

Charles Schwab & Co. (SCHW): ISI Group lowered their rating from Buy to Hold. Pre-market: 12.23 -0.65 (-5.05%)

Abercrombie & Fitch (ANF): SunTrust lowered their rating from Buy to Neutral. Pre-market: 56.50 -1.71 (-2.94%)

Blue Nile (NILE): Deutsche Bank lowered their rating from Hold to Sell and lowered their target price from $30.00 to $24.00. Pre-market: 37.00 -11.81 (-24.20%)

Walgreen (WAG): Credit Suisse raised their rating from Outperform to Neutral and raised their target price from $42.00 to $31.00. Pre-market: 32.20 -0.99 (-2.98%)

Earning Reports

Dean Foods (DF): Reported EPS of $0.18 beating estimates by +$0.03. Pre-market: 10.21 -0.27 

(-2.58%)

General Motors (GM): Reported EPS of $1.03 beating estimates by +$0.08. Pre-market: 23.18 -1.86 (-7.43%)

Macy’s (M): Reported EPS of $0.32 beating estimates by +$0.16. Pre-market: 30.80 -1.36 (-4.23%)

Polo Ralph Lauren (RL): Reported EPS of $2.46 beating estimates by +$0.23. Pre-market: 148.56 -10.49 (-6.60%)

Markets: 
Futures at 9:00: Dow -1.63%. S&P -2.11%. Nasdaq -1.63%. Crude -1.75% to $95.09. Gold -0.06% to $1799.30. 

Europe: London -1.92%. Paris -2.03%. Frankfurt -2.09%. 

Asia: Japan +1.15% to 8755. Hong Kong +1.71% to 20014. China +0.84% to 2524. India -1.18% to 17362.