MORNING COFFEE

McDonalds Goes Vegetarian. It might sound strange but McDonalds which is known for their Big Mac will be opening its first two vegetarian restaurants.  The new restaurants will be located in India near two Indian pilgrimage centers.  McDonalds currently has 271 stores in India and expects to double that number in just three years. Pre-market: 89.60 +0.11 (0.12%)

Upgrades

Morgan Stanley (MS): CLSA raised their rating from Outperform to Buy and raised their target price from $16.00 to $23.00. Pre-market: 15.30 +0.30 (2.00%)

Humana (HUM): Leerink raised their rating from Market Perform to Outperform and raised their target range from $66.00-$74.00 to $84.00-$92.00.

ConAgra (CAG): JPMorgan raised their rating from Neutral to Outperform and placed a target price of $29.00 on the company.

Downgrades

CSX (CSX): Dahlman Rose lowered their rating from Buy to Hold and placed a target price of $28.00 on the company. Pre-market: 22.25 -0.21 (-0.93%)

Norfolk Southern (NSC): Dahlman Rose lowered their rating from Buy to Hold and placed a target price of $28.00 on the company.

Ingersoll-Rand (IR): Bank of America / Merrill Lynch lowered their rating from Buy to Neutral and placed a target price of $48.00 on the company. Pre-market: 46.76 0.00 (0.00%)

Auto Zone (AZO): Goldman Sachs lowered their rating from Conviction Buy to Buy and lowered their target price from $425.00 to $415.00.

Fifth Third Bank (FITB): Evercore lowered their rating from Overweight to Equal Weight. Pre-market: 15.14 0.00 (0.00%)

Advance Micro Devices (AMD): Evercore lowered their rating from Equal Weight to Underweight. Pre-market: 3.70 -0.02 (-0.54%)

General Mills (GIS): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $43.00 to $40.00. Pre-market: 39.00 -0.33 (-0.84%)

Earning Reports

Campbell Soup (CPB):  Reported EPS of $0.41 beating estimates by +$0.03. Pre-market: 36.70 +1.56 (4.44%)

Smithfield Foods (SFD): Reported EPS of $0.40 missing estimates by -$0.05. Pre-market: 18.74 -0.58 (-3.00%)

Markets: 
Futures at 8:15: Dow -0.03%. S&P -0.08%. Nasdaq -0.04%. Crude +0.49% to $96.93. Gold +0.48% to $1695.70.

Europe: London -0.91%. Paris -0.59%. Frankfurt -0.36%.

Asia: Japan -0.10%. Hong Kong -0.66%. China -0.75%. India +0.32%.