MORNING COFFEE

EU Reaches Agreement without UK. 23 EU nations have increase their fiscal coordination and agreed that central banks will loan the IMF €200B ($267B) to lend to distressed EU members.  But U.K vetoed the measure, after not receiving protection for its financial sector.  The U.K government also warned that the new bloc would not be able to use EU resources.  Despite new doubt that the eurozone will be able to enforce its new fiscal rules U.S. stock futures are higher this morning.

Upgrades

Duke Energy (DUK):FBR Capital raised their rating from Underperform to Market Perform. Pre-market: 20.70 +0.21 (1.02%)

Yum! Brands (YUM): Bernstein raised their rating from Market Perform to Outperform and raised their target price from $57.00 to $70.00. Pre-market: 58.08 +0.59 (1.03%)

Downgrades

T. Rowe Price (TROW): Stifel Nicolaus lowered their rating from Buy to Hold.

Costco (COST): Susquehanna lowered their rating from Neutral to Negative and placed a target price of $65.00 on the company. Pre-market: 84.66 -1.10 (-1.28%)

Coverage Initiated

Ciena Corp (CIEN): Northland Securities initiated coverage with a Market Perform rating and target price of $12.50. Pre-market: 12.31 +0.28 (2.33%)

Sears Holdings (SHLD): Imperial Capital initiated coverage with a Underperform rating and target price of $6.00. Pre-market: 54.80 -3.54 (-6.07%)

Yahoo! (YHOO): BMO Capital initiated coverage with a Market Perform rating and target price of $17.00. Pre-market: 15.70 +0.09 (0.58%)

Earning Reports

Smith & Wesson (SWHC): Reported EPS of $0.01 beating estimates by +$0.05. Pre-market: 3.41 +0.08 (2.40%)

Pall (PLL): Reported EPS of $0.74 beating estimates by +$0.09.

Esterline Techs (ESL): Reported EPS of $1.21 beating estimates by +$0.03. Pre-market: 51.60 +0.52 (1.02%)

Markets: 
Futures at 8:19: Dow +0.89%. S&P +0.67%. Nasdaq +0.65%. Crude +0.11% to $98.44. Gold +0.25% to $1718.80. 

Europe: London +0.19%. Paris +1.19%. Frankfurt +0.74%. 

Asia: Japan -1.48% to 8536. Hong Kong -2.73% to 18586. China -0.62% to 2315. India -1.67% to 16213.