MORNING COFFEE

Freddie Mac Bet Against Homeowners. According to a NPR-ProPublica report  Freddie Mac's (FMCC) investment division placed billions of dollars of investments against homeowners who were trying to refinance their mortgages. The report bring up questions about a conflict of interest amid reports that Freddie Mac has been turning down refinancing requests in order to benefit its prop trades.

Upgrades

Nike (NKE): Argus raised their rating from Hold to Buy and placed a target price of $118.00 on the company.

Under Armour (UA): Needham raised their rating from Hold to Buy and placed a target price of $86.00 on the company.

Downgrades

Pep Boys (PBY): BB&T Capital Markets lowered their rating from Hold to Underweight.

Pep Boys (PBY): The Benchmark Company lowered their rating from Buy to Hold.

RadioShack (RSH): Caris lowered their rating from Average to Below Average.

RadioShack (RSH): Raymond James lowered their rating from Outperform to Underperform.

Monster Beverage Co (MNST): CLSA lowered their rating from  Buy to Outperform and lowered their target price from $120.00 to $112.00.

Magna International (MGA): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $54.00 to $48.00.

Coverage Initiated

Zillow (Z): The Benchmark Company initiated coverage with a Buy rating and target price of $35.00.

BB&T Corp (BBT): Wunderlich initiated coverage with a Buy rating and target price of $34.00.

Earning Reports

Archer-Daniels (ADM): Reported EPS of $0.51 missing estimates by -$0.26.

Eli Lilly (LLY): Reported EPS of $0.87 beating estimates by +$0.07.

Mattel (MAT): Reported EPS of $1.07 beating estimates by +$0.06.

Pfizer (PFE): Reported EPS of $0.50 beating estimates by +$0.03.

U.S. Steel (X): Reported EPS of -$1.14 missing estimates by -$0.30.

UPS (UPS): Reported EPS of $1.28 beating estimates by +$0.03.

Markets: 
Futures at 8:58: Dow +0.37%. S&P +0.49%. Nasdaq +0.49%. Crude +1.48% to $100.23 Gold +0.79% to $1744.40. 

Europe: London +0.84%. Paris +1.80%. Frankfurt +1.36%. 

Asia: Japan +0.11% to 8803. Hong Kong +1.14% to 20390. China +0.33% to 2,292.61. India +1.96% to 17194.