MORNING COFFEE

Global Central Banks Move to Save EU.  In a coordinated move the U.S. Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank announced a plan to shore up Europe’s financial system in an attempt to prevent massive defaults on sovereign debt and a collapse of the Euro.  The announcement has U.S. futures rising and the Euro strengthening against the dollar.

S&P Lowers Bank Ratings. S&P has lowered the rating on 37 of the largest financial institutions around the globe.  U.S. banks were also hit with downgrades, which included Bank of America (BAC), Citigroup (C), Goldman Sachs (GS) and Morgan Stanley (MS).

Upgrades

D.R. Horton (DHI): Raymond James raised their rating from Market Perform to Outperform.

Transocean (RIG): Tudor Pickering raised their rating from Trim to Hold.

Downgrades

Transocean (RIG): Argus lowered their rating from Buy to Hold.

Netflix (NFLX): Wedbush lowered their rating from Neutral to Underperform and placed a target price of $45.00 on the company.

Corning (GLW): CLSA lowered their rating from Outperform to Underperform and lowered their target price from $17.00 to $14.00.

Daimler AG (DDAIF): JP Morgan lowered their rating from Overweight to Neutral.

Coverage Initiated

Celgene (CELG): Auriga initiated coverage with a Buy rating and target price of $71.00.

Earnings

American Eagle (AEO): Reported EPS of $0.27 in-line with estimates.

Jos.A. Bank (JOSB): Reported EPS of $0.54 beating estimates by +$0.03.

OmniVision (OVTI): Reported EPS of $0.48 beating estimates by +$0.16.

Markets: 
Futures at 7:00: Dow +0.7%. S&P +0.8%. Nasdaq +0.9%. Crude +0.3% to $100.09. Gold +0.1% to $1720.40. 

Europe: London +1.1%. Paris +0.9%. Frankfurt +1.7%.

Asia: Japan -0.5% to 8435. Hong Kong -1.5% to 17989. China -3.3% to 2333. India +0.7% to 16123.