MORNING COFFEE

Moody’s Gives Banks Downgrade Warnings. The rating agency Moody's announced that it could cut the credit ratings of 17 global banks and securities firms.  The possible downgrades are due to funding issues, regulatory issues and a difficult operating environment. U.S. banks under review include Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM) and Morgan Stanley (MS).

Upgrades

Zillow (Z): Craig-Hallum raised their rating from Sell to Hold and placed a target price of $35.00 on the company. Pre-market: 35.65 +1.66 (4.88%)

Polo Ralph Lauren (RL): Argus raised their rating from Hold to Buy and placed a target price of $202.00 on the company. Pre-market: 173.00 +0.38 (0.22%)

General Mills (GIS): CLSA raised their rating from Underperform to Outperform and raised their target price from $40.00 to $44.00. Pre-market: 39.58 -0.03 (-0.08%)

Expeditors International (EXPD): Jefferies raised their rating from Hold to Buy and raised their target price from $45.00 to $53.00.

Downgrades

Comcast Corp. (CMCSA): Argus lowered their rating from Buy to Hold. Pre-market: 28.25 -0.27 (-0.95%)

Deere & Co. (DE): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $93-$96 to $90-$93. Pre-market: 84.51 +0.23 (0.27%)

Coverage Initiated

USG (USG): Macquarie initiated coverage with an Underperform rating and target price of $12.00 on the company. Pre-market: 13.79 0.00 (0.00%)

Earning Reports

Blue Nile (NILE): Reported EPS of $0.30 missing estimates by -$0.13. Pre-market: 32.50 -9.33 (-22.30%)

CBS (CBS): Reported EPS of $0.57 beating estimates by +$0.04. Pre-market: 28.70 -0.87 (-2.94%)

Clearwire (CLWR): Reported EPS of -$0.81 missing estimates by -$0.46. Pre-market: 2.14 -0.22 (-9.32%)

Oceaneering Intl (OII): Reported EPS of $0.54 beating estimates by +$0.02.

Skechers USA (SKX): Reported EPS of -$1.18 missing estimates by -$0.96.

Tesla Motors (TSLA): Reported EPS of -$0.69 missing estimates by -$0.06. Pre-market: 33.70 +0.10 (0.30%)

Markets: 

Futures at 7:45: Dow -0.35%. S&P -0.34%. Nasdaq -0.28%. Crude -0.83% to $100.96. Gold -0.71% to $1716.00. 

Europe: London -0.66%. Paris -0.74%. Frankfurt -1.04%. 

Asia: Japan -0.24% to 9238.1. Hong Kong -0.41% to 21277. China -0.42% to 2357. India -0.27% to 18154.