MORNING COFFEE

U.S. Warned About Debt Level. Rating agency Fitch has once again warned that rising U.S. debt is not consistent with the U.S. maintaining its AAA rating. Fitch said at least an additional $3.5 trillion in deficit reduction measures will be needed to lower the debt to 90% of GDP by the second half of the decade. This comes as Zero Hedge said that they have calculated that the U.S. debt has passed the 100% mark.

Upgrades

Zimmer Holdings (ZMH): Mizuho raised their rating from Neutral to Buy and raised their target price from $53.00 to $62.00. Pre-market: 52.83 +1.00 (1.93%)

VMware (VMW): Wunderlich raised their rating from Hold to Buy and placed a target price of $95.00 on the company. Pre-market: 78.25 +1.40 (1.82%)

Micron Tech (MU): Wedbush raised their rating from Neutral to Buy and raised their target price from $7.00 to $8.00. Pre-market: 5.58 +0.04 (0.72%)

Advance Auto Parts (AAP): BB&T raised their rating from Hold to Buy.   

Downgrades

KB Homes (KBH): Stifel Nicolaus lowered their rating from Buy to Hold. Pre-market: 7.14 -0.08 (-1.11%)

Boston Scientific (BSX): Mizuho lowered their rating from Buy to Neutral and lowered their target price from $7.00 to $5.40. Pre-market: 5.15 -0.06 (-1.15%)

Coverage Initiated

EMC (EMC): Ticonderoga initiated coverage with a Buy rating and target price of $27.00.

VMware (VMW): Ticonderoga initiated coverage with a Neutral rating. Pre-market: 78.25 +1.40 (1.82%)

Earning Reports

Bed Bath & Beyond (BBBY): Reported EPS of $0.95 beating estimates by +$0.06. Pre-market: 58.70 -2.73 (-4.44%)

Micron (MU): Reported EPS of -$0.19 missing estimates by -$0.09. Pre-market: 5.58 +0.04 (0.72%)

American Greetings (AM): Reported EPS of $0.50 missing estimates by -$0.32.

Markets: 
Futures at 8:32: Dow +0.49%. S&P +0.61%. Nasdaq +0.60%. Crude +0.43% to $99.10. Gold +0.07% to $1614.70. 

Europe: London +1.17%. Paris +1.44%. Frankfurt +1.20%. 

Asia: Japan -0.77% to 8395. Hong Kong -0.21% to 18378. China -0.22% to 2186. India +0.82% to 15813.