MORNING COFFEE

Defense Companies Fight Budget Cuts.  In a move to fight back against the $50 billion in defense cuts set to be implemented Jan. 1 2013, defense companies are threatening layoff.  Boeing (BA), Lockheed Martin (LMT), Northrop Grumman (NOC) and other defense contractors have said they will announce massive layoffs just prior to the election if Congress fails act by forestalling the cuts. Many of the contractors have large facilities in battleground states which would be a large blow to President Obama.

Additionally, Lockheed Martin (LMT) has won a preliminary contract valued at $2.02 billion to build at least 42 interceptor missiles.  The contract needs to be finalized and runs through July 31, 2018.

Upgrades

Forest Oil (FST): Canaccord Genuity raised their rating from Hold to Buy and maintained their target price of $12.00 on the company. Pre-market: 8.20 +0.30 (3.80%)

Chesapeake Energy (CHK): Argus raised their rating from Sell to Hold. Pre-market: 17.52 +0.52 (3.06%)

Groupon (GRPN): Stifel Nicolaus raised their rating from Sell to Hold. Pre-market: 10.00 +0.22 (2.20%)

Occidental Petroleum (OXY): Tudor Pickering raised their rating from Accumulate to Buy. Pre-market: 81.50 +0.32 (0.39%)

Tata Motors (TTM): Deutsche Bank raised their rating from Sell to Hold. Pre-market: 20.99 +0.92 (4.58%)

Dicks Sporting Goods (DKS): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $49.00-$52.00 to $52.00-$55.00. Pre-market: 46.30 +0.69 (1.51%)

Downgrades

Symantec (SYMC): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $20.00 to $16.00. Pre-market: 14.56 0.00 (0.00%)

Coverage Initiated

CIT Group (CIT): Janney Capital initiated coverage with a Buy rating and target price of $42.00.

Facebook (FB): JMP Securities initiated coverage with an Outperform rating and target price of $37.00. Pre-market: 26.34 +0.47 (1.82%)

Earning Reports

Bob Evans (BOBE): Reported EPS of $0.68 missing estimates by -$0.05. Pre-market: 37.25 -3.19 

(-7.89%)

Ulta Salon (ULTA): Reported EPS of $0.54 beating estimates by +$0.01. Pre-market: 90.05 +2.67 (3.06%)

Vail Resorts (MTN): Reported PES of $2.17 in-line with estimates.

Markets: 
Futures at 9:01: Dow +0.39%. S&P +0.51%. Nasdaq +0.58%. Crude +0.83% to $84.99. Gold +1.16% to $1635.70. 

Europe: London +1.07%. Paris +1.19%. Frankfurt +0.86%. 

Asia: Japan +1.81%. Hong Kong +1.43%. China -0.10%. India +2.71%.