MORNING COFFEE

Debt Issues Continue Around The Globe. Sovereign debt issues seem to be popping up like moles in a Whac-a-mole game. After a bad debt offering yesterday, things got worse for Italy. In the latest Italian bond auction yields on three-year paper rose to 7.89% from 4.93% only a month ago. Also in Europe, S&P said it could downgrade France’s AAA rating in the next week.  Moody’s has placed 87 EU banks on review with a view that the average downgrade will be 2 notches.  In the U.S. rating agency Fitch revised its outlook on the U.S. to Negative while affirming the country's AAA-rating. The Negative rating represents a slightly greater than 50% chance of a downgrade agency within the next two-years.

Upgrades

Honeywell (HON): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $69.00 on the company. Pre-market: 51.55 -0.11 (-0.21%)

Coverage Initiated

E.I. DuPont (DD): UBS initiated coverage with a Neutral rating and placed a target price of $44.50 on the company. Pre-market: 45.02 +0.01 (0.02%)

Triumph Group (TGI): Sterne Agee initiated coverage with a Buy rating and placed a target price of $70.00 on the company.

Boeing (BA): Sterne Agee initiated coverage with a Buy rating and placed a target price of $82.00 on the company. Pre-market: 64.87 -0.12 (-0.18%)

National Oilwell (NOV): Jefferies initiated coverage with a Buy rating and placed a target price of $88.00 on the company. Pre-market: 66.25 +0.44 (0.67%)

Halliburton (HAL): Jefferies initiated coverage with a Buy rating and placed a target price of $47.00 on the company. Pre-market: 32.92 +0.15 (0.46%)

Coverage Reiterated/Price Target Changed

Netflix (NFLX): Canaccord Genuity reiterated their Sell rating and lowered their target price from $60.00 to $57.00. Pre-market: 69.22 -0.73 (-1.04%)

Guess? (GES): Brean Murray reiterated their Buy rating and lowered their target price from $44.00 to $39.00.

Earning Reports

Tiffany & Co. (TIF): Reported EPS of $0.70 beating estimates by +$0.10. Pre-market: 67.37 -6.25 (-8.49%)

Markets: 
Futures at 8:52: Dow +0.13%. S&P +0.30%. Nasdaq +0.18%. Crude +0.20% to $98.39. Gold -0.06% to $1709.60. 

Europe: London -0.21%. Paris -0.30%. Frankfurt 0.00%. 

Asia: Japan +2.30% to 8478. Hong Kong +1.21% to 18256. China +1.23% to 2412. India -0.98% to 16008.