MORNING COFFEE

ECB to Cut Rates. The next few days will be a few crucial days for the EU, with leaders meeting in an attempt to come up with a plan to keep the eurozone debt crisis from spreading. Today the Wall Street expects the ECB to cut interest rates to a record low of 1% from 1.25% and unveil a new package of bank aid. The European Banking Authority is also expected to say how much banks will need to raise to absorb losses from eurozone bonds.  Additionally, eurozone chief Jean-Claude Juncker in an announcement said the euro "is in no way at risk." Despite this reports say some European central banks are preparing for a partial, or complete, eurozone breakdown. Ireland, is said to be considering whether it needs to increase the number of printing presses in case it must print new notes.  The Swiss are also considering alternate currencies to use as a franc reference point.

Downgrades

THQ (THQI): Brean Murray lowered their rating from Buy to Hold. Pre-market: 1.20 -0.26 (-17.81%)

THQ (THQI): Pacific Crest lowered their rating from Outperform to Sector Perform. Pre-market: 1.20 

-0.26 (-17.81%)

Las Vegas Sands (LVS): Janney Capital lowered their rating from Buy to Neutral and lowered their target price from $57.00 to $48.00. Pre-market: 45.00 -0.62 (-1.36%)

Valero Energy (VLO): RBC Capital lowered their rating from Top Pick to Outperform and lowered their target price from $33.00 to $32.00. Pre-market: 22.10 +0.04 (0.18%)

Coverage Initiated

Tranocean (RIG): Goldman Sachs initiated coverage with a Sell rating and target price of $48.00. Pre-market: 45.37 -0.02 (-0.04%)

Diamond Offshore Drilling (DO): Goldman Sachs initiated coverage with a Sell rating and target price of $70.00.

Halliburton (HAL): Goldman Sachs initiated coverage with a Conviction Buy rating and target price of $55.00. Pre-market: 34.35 +0.95 (2.84%)

Coverage Reiterated/Price Target Changed

CVS Caremark (CVS): Mizuhoreite rated their Buy rating and raised their target price from $$41.00 to $42.00.

Earning Reports

Pacific Sunwear (PSUN): Reported EPS of -$0.10 beating estimates by +$0.05. Pre-market: 1.70 +0.35 (25.93%)

Ciena (CIEN): Reported EPS of -$0.03 missing estimates by -$0.10. Pre-market: 12.30 +0.39 (3.27%)

Costco (COST): Reported EPS of $0.73 missing estimates by -$0.07. Pre-market: 85.81 -1.66 (-1.90%)

Smithfield Foods (SFD): Reported EPS of $0.76 beating estimates by +$0.06.

Markets: 
Futures at 8:21: Dow -0.02%. S&P -0.19%. Nasdaq +0.04%. Crude +0.43% to $100.92. Gold +0.12% to $1746.90. 

Europe: London +0.91%. Paris +0.48%. Frankfurt +0.99%. 

Asia: Japan -0.66% to 8665. Hong Kong -0.69% to 19108. China -0.12% to 2330. India -2.30% at 16488.