MORNING COFFEE

Buffett Rule Fall Short In Senate. Yesterday in the Senate the Buffett Rule fell short of passing with a 51-45 vote.  Democrats were pushing the rule which would have raised the federal tax rate to at least 30% for those making over $2 million per year. If passed economists say the added tax revenue would not have funded the government for even one day.

Downgrades

Cabela’s (CAB): Feltl & Co lowered their rating from Buy to Hold. Pre-market: 38.40 -0.32 (-0.83%)

CSX (CSX): Argus lowered their rating from Buy to Hold. Pre-market: 21.99 -0.09 (-0.41%)

SAP AG (SAP): HSBC Securities lowered their rating from Overweight to Neutral. Pre-market: 64.38 +0.65 (1.02%)

Coverage Initiated

Progressive Corp. (PGR): MKM Partners initiated coverage with a Buy rating and placed a target price of $28.00 on the company. Pre-market: 22.78 +0.17 (0.75%)

Morgan Stanley (MS): Susquehanna initiated coverage with a Positive rating and placed a target price of $23.00 on the company. Pre-market: 17.82 +0.32 (1.83%)

Motorola Solutions (MSI): Raymond James initiated coverage with a Strong Buy rating and placed a target price of $60.00 on the company.

Kinder Morgan Energy Partners (KMP): Global Hunter initiated coverage with a Neutral rating and placed a target price of $85.00 on the company. Pre-market: 82.00 +0.25 (0.31%)

Raymond James Financial (RJF): Susquehanna initiated coverage with a Positive rating and placed a target price of $28.00 on the company.

Goldman Sachs (GS): Susquehanna initiated coverage with a Neutral rating and placed a target price of $124.00 on the company. Pre-market: 119.16 +1.43 (1.21%)

Coverage Reiterated/Price Target Changed

Mattel (MAT): Caris & Company reiterated their Above Average rating and raised their target price from $37.00 to $39.00. Pre-market: 31.35 +0.34 (1.10%)

Earning Reports

Coca-Cola (KO): Reported EPS of $0.89 beating estimates by +$0.01. Pre-market: 73.44 +1.00 (1.38%)

Comerica (CMA): Reported EPS of $0.66 beating estimates by +$0.10. Pre-market: 32.70 +1.84 (5.96%)

Forest Labs (FRX): Reported EPS of $0.78 beating estimates by +$0.08. Pre-market: 34.00 +0.36 (1.07%)

Goldman Sachs (GS): Reported EPS of $3.92 beating estimates by +$0.39. Pre-market: 119.16 +1.43 (1.21%)

Johnson & Johnson (JNJ): Reported EPS of $1.37 beating estimates by +$0.03. Pre-market: 64.20 +0.22 (0.34%)

Northern Trust (NTRS): Reported EPS of $0.67 beating estimates by +$0.01. Pre-market: 45.97 -0.19 (-0.41%)

State Street (STT): Reported EPS of $0.84 missing estimates by -$0.03. Pre-market: 43.77 +0.09 (0.21%)

TD Ameritrade (AMTD): Reported EPS of $0.25 beating estimates by +$0.01. Pre-market: 18.64 -0.14 (-0.75%)

U.S. Bancorp (USB): Reported EPS of $0.67 beating estimates by +$0.03.

Markets: 
Futures at 9:04: Dow +0.65%. S&P +0.76%. Nasdaq +0.53%. Crude +0.24% to $103.18. Gold +0.22% to $1654.00. 

Europe: London +1.08%. Paris +1.59%. Frankfurt +1.45%.

Asia: Japan -0.06%. Hong Kong -0.23%. China -0.94%. India +1.21%.