MORNING COFFEE

N Korea May Have Tested Nuke for Iran. Reports say that intelligence agencies detected two nuclear weapons tests in North Korea during 2010 and the test may have been conducted for Iran. The news comes as President Obama and Israeli Prime Minister Binyamin Netanyahu will meet today to discuss Iran’s nuclear program and the possibility of military action.

Greece Close to Default. According to The Daily Telegraph, Greece is on course to default since it appears that it will fall short of the 95% agreement it needs from private creditors to secure its bond swap. Reports say that Greece will use a collective action clause (CAC) to impose the deal if it receives 66% approval, which would cause the ratings agencies and the ISDA to declare a default.

Upgrades

Lockheed Martin (LMT): RBC Capital raised their rating from Underperform to Outperform and raised their target price from $82.00 to $98.00. Pre-market: 89.15 +0.65 (0.73%)

Pandora Media (P): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $18.00 on the company. Pre-market: 14.60 +0.70 (5.04%)

Big Lots (BIG): Northcoast raised their rating from Neutral to Buy and placed a target price of $53.00 on the company. Pre-market: 43.20 +0.49 (1.15%)

Allstate (ALL): Argus raised their rating from Hold to Buy and placed a target price of $36.00 on the company. Pre-market: 31.42 +0.18 (0.58%)

Downgrades

Jabil Circuit (JBL): Needham lowered their rating from Strong Buy to Buy.

Leap Wireless (LEAP): Bernstein lowered their rating from Outperform to Market Perform. Pre-market: 9.95 -0.60 (-5.69%)

Markets: 
Futures at 8:21: Dow -0.12%. S&P -0.17%. Nasdaq -0.13%. Crude -0.06% to $106.63. Gold -0.36% to $1703.70. 

Europe: London -0.15%. Paris -0.16%. Frankfurt -0.52%. 

Asia: Japan -0.80% to 9699. Hong Kong -1.38% to 21265. China -0.64% to 2445. India -1.55% to 17363.