MORNING COFFEE

S&P Downgrades Spanish Banks.  S&P downgraded 11 Spanish banks, including Santander (STD) and BBVA (BBVA).  Last week the rating agency had downgraded Spanish sovereign debt by two-notch. STD Pre-market: 6.37 -0.10 (-1.55%) BBVA 6.87 0.00 (0.00%)

Sunoco To Be Bought Out. Energy Transfer Partners (ETP) has agreed to buy Sunoco (SUN) for $5.3 billion or $50.13 per share in cash and stock. ETP Pre-market: 49.01 +1.09 (2.27%) SUN Pre-market: 49.36 +8.45 (20.66%)

Upgrades

Kraft Food (KFT): JPMorgan raised their rating from Neutral to Overweight and placed a target price of $45.00 on the company. Pre-market: 39.75 +0.35 (0.89%)

Western Digital (WDC): Noble Financial raised their rating from Hold to Buy and placed a target price of $50.00 on the company. Pre-market: 38.51 +0.58 (1.53%)

Medtronic (MDT): Lazard Capital raised their rating from Hold to Neutral. Pre-market: 37.83 +0.14 (0.37%)

PPG Industries (PPG): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $120.00 to $122.00.

Dollar General (DG): Raymond James raised their rating from Outperform to Strong Buy and placed a target price of $57.00 on the company. Pre-market: 48.89 +1.11 (2.32%)

Downgrades

Procter & Gamble (PG): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 64.16 -0.28 (-0.43%)

Allscripts (MDRX): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 10.66 +0.36 (3.51%)

Olin Corp (OLN): Longbow lowered their rating from Buy to Neutral.

Earning Reports

Humana (HUM): Reported EPS of $1.49 missing estimates by -$0.05. Pre-market: 83.99 -3.83 (-4.36%)

Loews Corp (L): Reported EPS of $0.92 beating estimates by +$0.03.

NYSE Euronext (NYX): Reported EPS of $0.47 missing estimates by -$0.02.

Watson Pharm (WPI): Reported EPS of $1.64 beating estimates by +$0.04. Pre-market: 78.50 +2.34 (3.07%)

Markets: 
Futures at 7:00: -0.15%. S&P -0.29%. Nasdaq -0.36%. Crude -0.73% to $104.15. Gold -0.26% to $1660.50. 

Europe: London -0.50%. Paris -1.05%. Frankfurt -0.26%. 

Asia: Japan -0.43%. Hong Kong +1.70%. China -0.35%. India +0.76%.