MORNING COFFEE

Another California City Files For Bankruptcy. The golden state that once people flocked to is now a total train wreck.  Now the third city in just a few days is set to file for bankruptcy.  San Bernadino plans to file for bankruptcy after officials said it faced an imminent financial crisis. San Bernadino, is set to file bankruptcy following Stockton and Mammoth Lakes.  Analysts predict that this may only be the beginning of California cities filing for bankruptcy protection. Their entire state is feeling the crushing effects of government unions that negotiated ridicules salaries and pensions that need to be cut.  On top of that are the effects of the middle class fleeing the state in droves leaving only the very wealthy and poor, combined with illegal immigrants sucking billions of dollars out of the state coffers.  

Upgrades

Wendy’s (WEN): Wedbush raised their rating from Neutral to Outperform and raised their target price from $5.00 to $5.50. Pre-market: 4.68 +0.10 (2.18%)

Downgrades

E.I. DuPont (DD): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $54.00 on the company. Pre-market: 47.36 -0.29 (-0.61%)

Alcoa (AA): BMO Capital lowered their rating from Market Perform to Underperform and lowered their target price from $10.00 to $8.00. Pre-market: 8.36 -0.04 (-0.48%)

Coverage Initiated

Baidu.com (BIDU): HSBC Securities initiated coverage with an Overweight rating and target price of $154.00. Pre-market: 109.89 +0.59 (0.54%)

Comerica (CMA): Guggenheim initiated coverage with a Neutral rating and target price of $35.00.

Amazon.con (AMZN): BMO Capital initiated coverage with a Market Perform rating and target price of $260.00. Pre-market: 219.00 -0.50 (-0.23%)

IBM (IBM): UBS initiated coverage with a Neutral rating and target price of $205.00. Pre-market: 186.26 0.00 (0.00%)

Markets: 
Futures at 8:30: Dow +0.14%. S&P +0.18%. Nasdaq +0.04%. Crude +1.14% to $84.86. Gold -0.30% at $1575.10.

Europe: London -0.19%. Paris -0.50%. Frankfurt +0.12%. 

Asia: Japan -0.08%. Hong Kong +0.12%. China +0.51%. India -0.73%.