MORNING COFFEE

Eurozone Gets Warning.  European markets are lower after Standard & Poor’s placed the ratings of the entire eurozone on "Creditwatch with negative implications." The warning included Germany and France.  The warning means that there is a one-in-two chance of a downgrade within 90 days.  S&P also put the EFSF long-term credit rating on "Creditwatch with negative implications."

Upgrades

Orbitz (OWW): The Benchmark Company raised their rating from Hold to Buy and raised their target price from $3.00 to $5.00.

Texas Instrument (TXN): JMP Securities raised their rating from Market Perform to Outperform and placed a target price of $36.00 on the company. Pre-market: 30.36 +0.13 (0.43%)

General Electric (GE): Bernstein raised their rating from Market Perform to Outperform and raised their target price from $19.00 to $21.00. Pre-market: 16.48 +0.15 (0.92%)

Downgrades

THQ (THQI): Cowen lowered their rating from Outperform to Neutral. Pre-market: 1.75 -0.07 (-3.85%)

Ingersoll-Rand (IR): Sterne Agee lowered their rating from Buy to Neutral.

Earning Reports

AutoZone (AZO): Reported EPS of $4.68 beating estimates by +$0.24. Pre-market: 343.90 +4.93 (1.45%)

Toll Brothers (TOL): Reported EPS of $0.09 beating estimates by +$0.03. Pre-market: 21.40 +0.66 (3.18%)

PepBoys (PBY): Reported EPS of $0.13 in line with estimates.

Markets: 
Futures at 8:28: Dow +0.43%. S&P +0.06%. Nasdaq +0.38%. Crude +0.02% at $101.01. Gold -0.77% to $1721.20. 

Europe: London -0.02%. Paris -0.59%. Frankfurt -1.07%. 

Asia: Japan -1.39% to 8575. Hong Kong -1.24% to 18942. China -0.31% to 2326. India -0.25% to 16805.