MORNING COFFEE

Compton, CA Next To File Bankruptcy?  California cities seem to be falling like dominos.  The City of Compton may become the fourth Californian city in recent weeks to file for bankruptcy protection.   S&P warned it may cut the city's ratings following the resignation of its independent auditors and is due to run out of money on September 1.  Compton has an accumulated debt of over $43 million and has depleted their reserves.  The cities of Stockton, Mammoth Lakes and San Bernardino have already filed bankruptcy and the state itself is in very poor shape.

Upgrades

Tiffany & Co. (TIF): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $70.00 on the company.

Downgrades

Saks (SKS): Goldman Sachs lowered their rating from Neutral to Sell and lowered their target price from $12.00 to $9.00. Pre-market: 9.97 -0.29 (-2.83%)

Caterpillar (CAT): Longbow lowered their rating from Buy to Neutral. Pre-market: 80.90 -1.01 (-1.23%)

Kennametal (KMT): Jefferies lowered their rating from Buy to Hold and lowered their target price from $50.00 to $34.00.

Coverage Initiated

AFLAC Inc. (AFL): UBS initiated coverage with a Neutral rating and target price of $44.00.

Coverage Reiterated/Price Target Changed 

Mattel (MAT): Needham reiterated their Buy rating and raised their target price from $35.00 to $38.00.

Mattel (MAT): MKM Partners reiterated their Neutral rating and raised their target price from $29.00 to $33.00.

Earning Reports

CSX (CSX): Reported EPS of $0.49 beating estimates by +$0.02. After Hours: 23.10 +0.31 (1.36%)

Intel (INTC): Reported EPS of $0.54 beating estimates by +$0.02. Pre-market: 25.00 -0.38 (-1.50%)

Wynn Reports (WYNN): Reported EPS of $1.38 missing estimates by -$0.16. After Hours: 98.00 +0.64 (0.66%)

Yahoo! (YHOO): Reported EPS of $0.27 beating estimates by +$0.01. Pre-market: 15.50 -0.10 (-0.64%)

Abbott Labs (ABT): Reported EPS of $1.23 beating estimates by +$0.01. After Hours: 66.50 +0.04 (0.06%)

Bank of America (BAC): Reported EPS $0.19 beating estimates by +0.05. Pre-market: 7.97 +0.05 (0.63%)

BlackRock (BLK): Reported EPS of $3.10 beating estimates by +$0.07. After Hours: 175.50 -0.65 (-0.37%)

Honeywell (HON): Reported EPS of $1.14 beating estimates by +$0.03

Stanley Black & Decker (SWK): Reported EPS of $1.32 missing estimates by -$0.21. After Hours: 59.85 +0.13 (0.22%)

Markets: 
Futures at 7:00: Dow -0.27%. S&P -0.28%. Nasdaq -0.28%. Crude -0.41% to $88.84. Gold -0.69% to $1578.50.

Europe: London +0.08%. Paris +0.57%. Frankfurt +0.08%. 

Asia: Japan -0.32%. Hong Kong -1.11%. China +0.37%. India +0.47%.