MORNING COFFEE

USPS $5.1 Billion in Debt. The U.S. Postal Service is now $5.1 billion in debt and may run out of cash by the end of 2012.  The Postal Service has been having problems for years as people have turned to the internet and email as their primary means of communication.  The agency is a government entity yet receives very little federal cash and need Congressional approval to implement any reforms.  Additionally, our national debt is expected to hit the $15 trillion mark today and the interest on that debt is $454 billion each year.

Upgrades

Research In Motion (RIMM): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $18.00 to $22.00. Pre-market: 19.40 +0.27 (1.41%)

Dick’s Sporting Goods (DKS): Goldman Sachs raised their rating from Buy to Conviction Buy and raised their target price from $45.00 to $49.00. Pre-market: 41.49 +0.08 (0.19%)

Downgrades

Tenet Healthcare (THC): Leerink lowered their rating from Outperform to Market Perform.

Dell Inc. (DELL): FBN Securities lowered their rating from Outperform to Sector Perform and lowered their target price from $20.00 to $17.00. Pre-market: 15.27 -0.36 (-2.30%)

Coverage Reiterated/Price Target Changed

Ulta Salon (ULTA): Oppenheimer maintained their Outperform rating and raised their target price from $70.00 to $85.00.

Earning Reports

Abercrombie & Fitch (ANF): Reported EPS of $0.57 missing estimates by -$0.15. Pre-market: 51.50 -4.20 (-7.54%)

Dell (DELL): Reported EPS of $0.54 beating estimates by +$0.07. Pre-market: 15.27 -0.36 (-2.30%)

Sally Beauty (SBH): Reported EPS of $0.29 beating estimates by +$0.01.

Target (TGT): Reported EPS of $0.87 beating estimates by +$0.13. Pre-market: 54.95 +1.77 (3.33%)

Tyco (TYC): Reported EPS of $0.92 beating estimates by +$0.06. Pre-market: 46.10 +0.31 (0.68%)

Markets: 
Futures at 8:35: Dow -0.73%. S&P -1.00%. Nasdaq -0.41%. Crude -0.18% to $99.16. Gold -0.49% to $1772.90. 

Europe: London -0.72%. Paris +0.03%. Frankfurt -0.94%. 

Asia: Japan -0.92% to 8463. Hong Kong -2.00% to 18961. China -2.48% to 2467. India -0.63% to 16776.