MORNING COFFEE

Fitch May Downgrade Italian Debt. The rating agency Fitch announced that they could downgrade a number of eurozone countries, including Italy.  The downgrade could be one or two notches by the end of the month. In a statement they said that Italy is the greatest risk to the euro amid the sovereign-debt crisis.  Fitch also said it currently has no plans cut France's AAA credit rating during 2012.

Upgrades

Cirrus Logic (CRUS): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $26.00 on the company. Pre-market: 18.65 +1.68 (9.90%)

Tractor Supply Co. (TSCO): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $67.00 to $72.00. Pre-market: 71.16 +0.56 (0.79%)

Downgrades

Consolidated Edison (ED): ISI Group lowered their rating from Hold to Sell. Pre-market: 59.30 +0.03 (0.05%)

Coverage Initiated

Comerica (CMA): BTIG initiated coverage with a Buy rating and target price of $36.00.

AT&T (T): Deutsche Bank initiated coverage with a Hold rating and target price of $32.00. Pre-market: 29.89 +0.23 (0.78%)

Earning Reports

Alcoa (AA): Reported EPS of -0.03 missing estimates by -0.02. Pre-market: 9.71 +0.28 (3.02%)

WD-40 (WDFC): Reported EPS of 0.42 missing estimates by -0.12.

Markets: 
Futures at 7:09: Dow +0.88%. S&P +0.93%. Nasdaq +0.83%. Crude +1.91% to $103.24. Gold +1.90% to $1638.60. 

Europe: London +1.51%. Paris +2.79%. Frankfurt +2.75%. 

Asia: Japan +0.38% to 8422. Hong Kong +0.73% to 19004. China +2.69% to 2286. India +2.22% to 16165.