MORNING COFFEE

New Master Plan for EU. Reports say that EU and ECB officials are working on a “master plan" to restructure Europe.  The master plan would include restructuring EU banking and fiscal planning while deepening the political union. Indications are the Germany would drop its opposition to the banking and fiscal plans in return for EU governments giving up more sovereignty.

Portuguese Banks Receive Bailout. The Portuguese government will use more than €6.6 billion of its international bailout money to bail out its banks. The government will inject €1.65 billion into state-controlled Caixa Geral de Depositos, €3.5 billion into Banco Comercial Portugues SA, and €1.5 billion into Banco BPI SA (BBSPY). The bailout will help the banks as loan losses are rising.  In return the Portuguese government will receive convertible bonds from Banco Comercial Portugues and Banco BPI in return.

Upgrades

Boeing (BA): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $80.00 on the company. Pre-market: 67.81 +0.57 (0.85%)

Bank of America (BAC): Evercore raised their rating from Equal Weight to Overweight. Pre-market: 7.07 +0.05 (0.71%)

Downgrades

Cheesecake Factory (CAKE): William Blair lowered their rating from Outperform to Market Perform.

Yum! Brands (YUM): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 64.02 -0.68 (-1.05%)

Charles Schwab (SCHW): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $20.00 to $13.00. Pre-market: 11.99 -0.11 (-0.91%)

TD Ameritrade (AMTD): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $22.00 to $18.00. Pre-market: 16.35 -0.12 (-0.73%)

Regions Financial (RF): Deutsche Bank lowered their rating from Buy to Hold and lowered their target price from $7.50 to $6.50. Pre-market: 5.83 -0.05 (-0.85%)

Cummins (CMI): Wells Fargo Bank lowered their rating from Outperform to Market Perform and lowered their target price range from $132.00-$135.00 to $100.00-$103.00. Pre-market: 92.63 -0.93 (-0.99%)

Markets: 
Futures at 7:00: -0.02%. S&P +0.28%. Nasdaq +0.24%. Crude -1.08% to $82.33. Gold -0.09% to $1620.70. 

Europe: London closed. Paris +0.73%. Frankfurt -0.45%. 

Asia: Japan -1.71%. Hong Kong -2.01%. China -2.73%. India +0.15%.