MORNING COFFEE

Facebook Raises IPO Price. 

Facebook (FB) announced that it was raising their IPO price range to $34.00-$38.00 a share from $28.00-$35.00 due to heavy demand. Some analysts are warning that the hype may push the shares too high once they begin trading and that investor may be able to pick up the shares at a cheaper price once the hype has faded.

Moody’s Downgrades Banks. The rating agency Moody's (MCO) has downgraded 26 Italian banks by one-to-four notches.  The company noted an economy in recession, asset quality challenges, and access to funding markets. Additionally, Moody’s said that the outlook for the banks affected remains negative.

Upgrades

Akamai Tech (AKAM): Janney Capital raised their rating from Neutral to Buy and raised their target price from $33.00 to $35.00. Pre-market: 30.30 +0.64 (2.16%)

Southern Co (SO): Jefferies raised their rating from Hold to Buy and raised their target price from $46.00 to $50.50.

Dominion Resources (D): Jefferies raised their rating from Hold to Buy and raised their target price from $52.00 to $58.00.

Amazon.com (AMZN): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $190.00 to $270.00. Pre-market: 227.24 +4.31 (1.93%)

Total S.A. ADS (TOT): UBS raised their rating from Neutral to Buy. Pre-market: 44.72 +0.56 (1.27%)

Downgrades

Applied Materials (AMAT): Needham lowered their rating from Buy to Hold.

Kennametal (KMT): BB&T lowered their rating from Buy to Hold.

McDonalds (MCD): Cowen lowered their rating from Outperform to Neutral. Pre-market: 91.30 +0.42 (0.46%)

Experian PLC (EXPGY): Credit Suisse lowered their rating from Outperform to Neutral.

Xcel Energy (XEL): Jefferies lowered their rating from Buy to Hold and lowered their target price from $30.00 to $29.00.

Coverage Initiated

Phillips 66 (PSX): Citigroup initiated coverage with a Buy rating and target price of $40.00.

Marriot Intl (MAR): Deutsche Bank initiated coverage with a Hold rating and target price of $44.00.

Earning Reports

Groupon (GRPN): Reported EPS of $0.02 in-line with estimates. Pre-market: 14.40 +2.67 (22.71%)

Arctic Cat (ACAT): Reported EPS of -$0.49 beating estimates by +$0.06.

Home Depot (HD): Reported EPS of $0.65 in-line with estimates. Pre-market: 48.15 -1.73 (-3.47%)

Markets: 
Futures at 8:23: Dow +0.40%. S&P +0.48%. Nasdaq +0.74%. Crude +0.15% to $94.93. Gold +0.05% to $1561.80. 

Europe: London -0.20%. Paris +0.36%. Frankfurt +0.09%. 

Asia: Japan -0.81%. Hong Kong +0.81%. China -0.25%. India +0.69%.