MORNING COFFEE

Super Failure. The Congressional “super committee” and come up with a super failure after months of negations produce $1.2 trillion in deficit cuts by Wednesday's deadline. Reports say that Democrats were proposing massive tax hikes and very little cuts to entitlement programs, while republicans offer smaller tax hikes combined with larger cuts to entitlement programs. With no deal even close to being made, the mandatory cuts with take effect.  The cuts will come in the form of entailment programs and the military.  Economists are now saying that the U.S. debt rating may be downgraded again.

Upgrades

Wal-Mart (WMT): JP Morgan raised their rating from Neutral to Overweight and placed a target price of $64.00 on the company. Pre-market: 57.00 -0.23 (-0.40%)

Hershey Foods (HSY): Ticonderoga raised their rating from Neutral to Buy and placed a target price of $66.00 on the company.

Morgan Stanley (MS): Collins Stewart raised their rating from Hold to Buy and placed a target price of $21.00 on the company. Pre-market: 13.90 -0.31 (-2.18%)

Downgrades

Progressive Corp (PGR):  FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $22.00 to $19.00.

Target Corp. (TGT): JP Morgan lowered their rating from Overweight to Neutral and placed a target price of $58.00 on the company. Pre-market: 51.85 -1.15 (-2.17%)

Research In Motion (RIMM): JMP Securities lowered their rating from Market Perform to Underperform and placed a target price of $12.00 on the company. Pre-market: 17.60 -0.59 (-3.24%)

Earning Reports

Tyson Foods (TSN): Reported EPS of $0.26 missing estimates by -$0.05.

Markets: 
Futures at 8:39: Dow -1.16%. S&P -1.27%. Nasdaq -0.83%. Crude -1.21% to $97.45. Gold -0.92% to $1709.00.  

 

Europe: London -1.59%. Paris -2.09%. Frankfurt -2.03%. 

Asia: Japan -0.32% to 8348. Hong Kong -1.44% to 18226. China -0.06% to 2415. India -2.60% to 15946.