MORNING COFFEE

Wal-Mart Moves Ahead with Massmart Deal. A South African court dismissed an appeal from the government and unions which will allow Wal-Mart (WMT) to move forward with its $2.4B acquisition of Massmart.   The deal will help Massmart's African expansion and give Wal-Mart a strong presence in the region. Pre-market: 59.95 +0.18 (0.30%)

UPS and TNT Express Near Deal. UPS (UPS) announced they are near reaching a deal with TNT Express NV (TNTE). TNT Express is Europe’s second largest package-delivery company controlling 9.9% of the European market.  UPS has 7.7% of the European market and the deal would put UPS well ahead of FedEx’s (FDX) market share of only 3.3%.  Deutsche Post AG (DWP) DHL unit is the largest in Europe with 17.6% market share.  After the deal is completed UPS will have the same market share as DHL in Europe. A final announcement may come as soon as next week.

Upgrades

Cigna (CI): Susquehanna raised their rating from Neutral to Positive and raised their target price from $45.00 to $54.00. Pre-market: 44.53 +0.41 (0.93%)

Aeropostale (ARO): Caris raised their rating from Average to Above Average and placed a target price of $21.00 on the company. Pre-market: 19.33 +0.38 (2.01%)

Kohl’s (KSS): Jefferies raised their rating from Hold to Buy and raised their target price from $47.00 to $59.00. Pre-market: 50.01 +0.96 (1.96%)

Smith & Wesson (SWHC): Cowen raised their rating from Neutral to Outperform. Pre-market: 6.07 +0.41 (7.24%)

Downgrades

Medtronic (MDT): Argus lowered their rating from Hold to Sell. Pre-market: 37.62 -0.51 (-1.34%)

Pall Corp (PLL): JP Morgan lowered their rating from Neutral to Underweight. Pre-market: 59.48 -1.72 (-2.81%)

Pall Corp (PLL): Wedbush lowered their rating from Outperform to Neutral and placed a target price of $64.00 on the company. Pre-market: 59.48 -1.72 (-2.81%)

Ensco (ESV): Bernstein lowered their rating from Outperform to Market Perform and placed a target price of $60.00 on the company. Pre-market: 56.10 -0.41 (-0.73%)

SABMiller PLC (SBMRY): Natixis lowered their rating from Buy to Neutral.

Coverage Initiated

Dick's Sporting Goods (DKS): Argus initiated coverage with a Buy rating and target price of $55.00.

JP Morgan Chase (JPM): Guggenheim initiated coverage with a Buy rating and target price of $50.00. Pre-market: 40.58 +0.14 (0.35%)

Earning Reports

Aeropostale (ARO): Reported EPS of $0.44 beating estimates by +$0.07. Pre-market: 19.33 +0.38 (2.01%)

Smith & Wesson (SWHC): Reported EPS of $0.07 beating estimates by +$0.03. Pre-market: 6.07 +0.41 (7.24%)

Thor Industries (THO): Reported EPS of $0.25 beating estimates by +$0.01.

Ulta Salon (ULTA): Reported EPS of $0.73 beating estimates by +$0.06. Pre-market: 90.00 +0.73 (0.82%)

Zumiez (ZUMZ): Reported EPS of $0.60 in-line with estimates.

Markets: 
Futures at 9:03: Dow +0.71%. S&P +0.12%. Nasdaq +0.11%. Crude -0.23% to $106.34. Gold -0.92% to $1682.90. 

Europe: London -0.78%. Paris +0.17%. Frankfurt +0.21%. 

Asia: Japan -0.09% to 5854. Hong Kong -0.27% to 8285. China +0.79% to 2439. India +2.09% to 17503.