MORNING COFFEE

Italian Economy in Recession. According to reports the Italian economy entered recession in Q4 as GDP dropped a quarterly -0.7%, adding to a fall of -0.2% in Q3. Additionally the eurozone economy contracted by -0.3% in Q4.  It was the first eurozone contraction since Q2 2009.  The decline in the eurozone had been expected due to the debt crisis and austerity measures implemented by governments.

Downgrades

Bank of America (BAC): Bernstein lowered their rating from Outperform to Market Perform and placed a target price of $9.00 on the company. Pre-market: 8.01 +0.03 (0.38%)

Fossil (FOSL): The Benchmark Company lowered their rating from Buy to Hold.

Fossil (FOSL): CLSA lowered their rating from Outperform to Buy and placed a target price of $132.00 on the company.

Zynga (ZNGA): Robert W. Baird lowered their rating from Outperform to Neutral. Pre-market: 13.51 -0.84 (-5.87%)

Lockheed Martin (LMT): Bernstein lowered their rating from Outperform to Market Perform and lowered their target price from $103.00 to $99.00.

Dell Inc. (DELL): Sterne Agee lowered their rating from Neutral to Underperform and placed a target price of $15.00 on the company. Pre-market: 17.93 -0.11 (-0.61%)

Hasbro (HAS): Sterne Agee lowered their rating from Buy to Neutral and placed a target price of $41.00 on the company.

Kimberly Clark (KMB): Janney Capital lowered their rating from Buy to Neutral and lowered their target price from $79.00 to $74.00.

Earning Reports

Zynga (ZNGA): Reported EPS of $0.05 beating estimates by +$0.01. . Pre-market: 13.51 -0.84 (-5.87%)

Abercrombie & Fitch (ANF): Reported EPS of $1.12 missing estimates by -$0.03. Pre-market: 43.60 -0.99 (-2.22%)

Comcast (CMCSA): Reported EPS of $0.47 beating estimates by +$0.05. Pre-market: 29.05 +1.80 (6.61%)

Dr Pepper Snapple (DPS): Reported EPS of $0.82 beating estimates by +$0.08. Pre-market: 40.00 +0.89 (2.28%)

Teva Pharma (TEVA): Reported EPS of $1.59 beating estimates by +$0.01. Pre-market: 44.55 +1.03 (2.37%)

Markets: 
Futures at 8:15: Dow +0.23%. S&P +0.38%. Nasdaq +0.49%. Crude +1.06% to $101.85. Gold +0.69% to $1729.40. 

Europe: London +0.12%. Paris +0.76%. Frankfurt +0.87%. 

Asia: Japan +2.30% to 9260. Hong Kong +2.14% to 21365. China +0.94% to 2367. India +1.98% to 18202.