MORNING COFFEE

Apple Beats Estimates. Despite slower iPhone sales at both AT&T (T) and Verizon (VZ) Apple (AAPL) beat street estimates. FQ2 earnings topped estimates as EPS almost doubled to $12.30 and revenue shot up 59% to $39.2B. iPhone shipments jumped 88% to 35.1 million units and iPad sales soared over 150% to 11.8 million. Asia-Pacific, likely driven by China, played a big role in the earnings beat. Pre-market: 614.61 +54.33 (9.70%)

Upgrades

United States Steel (X): Macquarie raised their rating from Underperform to Neutral and raised their target price from $25.00 to $29.00.

Apple (AAPL): Scotia Capital raised their rating from Sector Perform to Outperform and raised their target price from $656.00 to $843.00. Pre-market: 614.61 +54.33 (9.70%)

United Tech (UTX): Argus raised their rating from Hold to Buy and placed a target price of $96.00 on the company. Pre-market: 80.83 +0.98 (1.23%)

Panera Bread (PNRA): Miller Tabak raised their rating from Hold to Buy and raised their target price from $175.00 to $178.00. Pre-market: 151.50 +3.25 (2.19%)

Aeropostale (ARO): Janney Montgomery Scott raised their rating from Neutral to Buy and placed a target price of $96.00 on the company.

Ryder Systems (R): Robert Baird raised their rating from Neutral to Outperform and placed a target price of $61.00 on the company.

Downgrades

McDonalds (MCD): Argus lowered their rating from Buy to Hold. Pre-market: 95.10 +0.51 (0.54%)

Wal-Mart (WMT): Argus lowered their rating from Buy to Hold. Pre-market: 58.00 +0.23 (0.40%)

Symantec (SYMC): Lazard Capital lowered their rating from Buy to Neutral.

Coverage Reiterated/Price Target Changed 

Apple (AAPL): Canaccord Genuity reiterated their Buy rating and raised their target price from $740.00 to $775.00. Pre-market: 614.61 +54.33 (9.70%)

Apple (AAPL): ISI Group reiterated their Buy rating and raised their target price from $650.00 to $750.00. Pre-market: 614.61 +54.33 (9.70%)

Apple (AAPL): Mizuho reiterated their Buy rating and raised their target price from $700.00 to $725.00. Pre-market: 614.61 +54.33 (9.70%)

Earning Reports

Aflac (AFL): Reported EPS of $1.68 beating estimates by +$0.04. Pre-market: 44.29 +2.29 (5.45%)

Apple (AAPL): Reported EPS of $12.30 beating estimates by +$2.26. Pre-market: 614.61 +54.33 (9.70%)

DeVry (DV): Reported EPS of $1.00 beating estimates by +$0.01

Boeing (BA): Reported EPS of $1.11 beating estimates by +$0.16.

Caterpillar (CAT): Reported EPS of $2.37 beating estimates by +$0.32. Pre-market: 106.85 -1.55 (-1.43%)

Corning (GLW): Reported EPS of $0.30 beating estimates by +$0.02.

Credit Suisse (CS): Reported EPS of $0.03 beating estimates by +$0.21.

Eli Lilly (LLY): Reported EPS of $0.92 beating estimates by +$0.12.

General Dynamics (GD): Reported EPS of $1.57 missing estimates by -$0.12.

GlaxoSmithKline (GSK): Reported EPS of $0.27 missing estimates by -$0.02.

Harley-Davidson (HOG): Reported EPS of $0.74 beating estimates by +$0.02.

Molex (MOLX): Reported EPS of $0.36 beating estimates by +$0.02.

National Oilwell (NOV): Reported EPS of $1.44 beating estimates by +$0.05.

Northrop Grumman (NOC): Reported EPS of $1.96 beating estimates by +$0.37.

Markets: 
Futures at 9:14: Dow +0.39%. S&P +0.72%. Nasdaq +1.99%. Crude +0.45% to $104.02. Gold -0.15% to $1641.30. 

Europe: London +0.26%. Paris +2.22%. Frankfurt +1.63%. 

Asia: Japan +0.98%. Hong Kong -0.15%. China +0.75%. India -0.33%.