MORNING COFFEE

ECB Loans to 523 Banks.  The ECB has loaned €489 billion ($639 billion) to 523 banks in the ECB's "longer-term refinancing operation." Economist had expected only €310B in loans. The three-year loans averaged a benchmark rate of 1%. The move was an attempt to prevent the credit market from freezing up due to the eurozone debt crisis. It was the biggest ECB infusion of credit into the banking system in the euro's 13 year history.  Portfolio manager Rick Paler at RL Paler Investment Advisors, LLC said “The loans may avoid a short liquidity crunch, but it does nothing to ease the sovereign debt crisis.”

Downgrades

AT&T (T): Argus lowered their rating from Buy to Hold. Pre-market: 29.00 -0.12 (-0.41%)

JP Morgan Chase (JPM): Sterne Agee lowered their rating from Buy to Neutral and placed a target price of $36.00 on the company. Pre-market: 31.87 -0.34 (-1.06%)

Oracle (ORCL): CLSA lowered their rating from Buy to Underperform and lowered their target price from $36.00 to $30.00. Pre-market: 26.19 -2.98 (-10.22%)

Oracle (ORCL): Canaccord lowered their rating from Buy to Hold and placed a target price of $28.00 on the company. Pre-market: 26.19 -2.98 (-10.22%)

Coverage Initiated

Xylem (XYL): Ladenburg initiated coverage with a Buy rating and target price of $30.00.

 Cree (CREE): Needham initiated coverage with a Buy rating. Pre-market: 20.52 +0.03 (0.15%)

Pep Boys (PBY): The Benchmark Company initiated coverage with a Buy rating and target price of $14.00.

General Motors (GM): Sterne Agee initiated coverage with a Buy rating and target price of $36.00. Pre-market: 19.70 +0.01 (0.05%)

Earning Reports

Cintas (CTAS): Reported EPS of $0.57 beating estimates by +$0.09. After Hours: 33.50 +2.22 (7.10%)

Nike (NKE): Reported EPS of $1.00 beating estimates by +$0.03. Pre-market: 95.00 +1.37 (1.46%)

Oracle (ORCL): Reported EPS of $0.54 missing estimates by -$0.03. Pre-market: 26.19 -2.98 (-10.22%)

Paychex (PAYX): Reported EPS of $0.39 beating estimates by +$0.01. Pre-market: 29.70 -0.54 (-1.79%)

CarMax (KMX): Reported EPS of $0.36 missing estimates by -$0.02. Pre-market: 30.51 -0.56 (-1.80%)

Shaw Group (SHAW): Reported EPS of $0.69 beating estimates by +$0.25. 

         

Walgreens (WAG): Reported EPS of $0.63 missing estimates by -$0.04. Pre-market: 31.45 -2.05 (-6.12%)

Markets: 
Futures at 7:53: Dow -0.04%. S&P -0.11%. Nasdaq -0.10%. Crude +0.14% to $97.10. Gold -0.14% to $1615. 

Europe: London -0.48%. Paris -0.71%. Frankfurt -0.43%. 

Asia: Japan +1.48% to 8460. Hong Kong +1.86% to 18416. China -1.12% to 2191. India +3.36% to 15685.