MORNING COFFEE

Chances of Greek Default Increase. After hours of meetings Greek politicians failed to agree on a austerity program and other needed reforms. One of the main sticking points was cuts to pensions.  Greek finance minister Evangelos Venizelos will head to a Brussels summit today without the austerity measures needed to receive additional bailout funds. Additionally, the Greek unemployment rate hit a new record of 20.9% in November and December industrial production dropped 11.3%.

Downgrades 

Amgen (AMGN): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 68.00 -0.06 (-0.09%)

Cisco Systems (CSCO): ISI Group lowered their rating from Buy to Hold and placed a target price of $22.00 on the company. Pre-market: 20.18 -0.25 (-1.22%)

Cisco Systems (CSCO): MKM Partners lowered their rating from Buy to Neutral. Pre-market: 20.18 -0.25 (-1.22%)

Diamond Foods (DMND): SunTrust lowered their rating from Buy to Neutral. Pre-market: 21.94 -14.72 (-40.15%)

DIRECTV (DTV): Macquarie lowered their rating from Overweight to Neutral and lowered their target price from $52.00 to $50.00. Pre-market: 44.30 -0.62 (-1.38%)

Joy Global (JOY): Jefferies lowered their rating from Buy to Hold and lowered their target price from $100.00 to $90.00.

Coverage Initiated

Apple (AAPL): Mizuho initiated coverage with a Buy rating and target price of $635.00. Pre-market: 479.57 +2.89 (0.61%)

Dell (DELL): Mizuho initiated coverage with a Buy rating and target price of $20.00.

Dollar Tree (DLTR): JP Morgan initiated coverage with an Overweight rating and target price of $100.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Needham reiterated their Buy rating and raised their target price from $540.00 to $620.00. Pre-market: 479.57 +2.89 (0.61%)

CVS Caremark (CVS): Mizuho reiterated their Buy rating and raised their target price from $45.00 to $48.00. Pre-market: 43.50 -0.07 (-0.16%)

Walt Disney (DIS): Hilliard Lyons reiterated their Long Term Buy rating and raised their target price from $50.00 to $52.00. Pre-market: 41.06 -0.21 (-0.51%)

Earning Reports

Groupon (GRPN): Reported EPS of -$0.02 missing estimates by -$0.05. Pre-market: 21.87 -2.71 (-11.03%)

News Corp (NWSA): Reported EPS of $0.39 beating estimates by +$0.05. Pre-market: 19.48 -0.14 (-0.71%)

Visa (V): Reported EPS of $1.49 beating estimates by +$0.04. Pre-market: 112.76 +4.41 (4.07%)

PepsiCo (PEP): Reported EPS of $1.15 beating estimates by +$0.03. Pre-market: 65.15 -1.59 (-2.38%)

Intl Flavors (IFF): Reported EPS of $0.74 beating estimates by +$0.01.

Markets: 
Futures at 8:19: Dow +0.26%. S&P +0.16%. Nasdaq +0.14%. Crude +0.90% to $99.61. Gold +0.46% to $1738.90. 

Europe: London +0.59%. Paris +0.97%. Frankfurt +1.19%. 

Asia: Japan -0.15% to 9002. Hong Kong -0.04% to 21010. China +0.09% to 2350. India +0.70% to 17831.