MORNING COFFEE

Protests Spread In China. The protests that started over the weekend against Japan and led to riots have been spreading.  The protests occurring in over 100 Chinese cities are over disputed uninhabited islands that are rich with natural gas and oil deposits. Attacks against Japanese businesses have caused some Japanese companies to idle their factories in an attempt to protect their workers. The dispute has put the two countries' $340 billion trade relationship at risk.

Upgrades

General Motors (GM): Buckingham raised their rating from Neutral to Buy. Pre-market: 24.21 +0.41 (1.72%)

BMC Software (BMC): ThinkEquity raised their rating from Hold to Buy and raised their target price from $37.00 to $50.00.

TASER International (TASR): JPMorgan raised their rating from Neutral to Overweight and raised their target price from $6.00 to $7.50.

Downgrades

Silicon Labs (SLAB): Miller Tabak lowered their rating from Buy to Neutral and placed a target price of $43.00 on the company.

Panera Bread Co. (PNRA): Miller Tabak lowered their rating from Buy to Neutral and placed a target price of $172.00 on the company.

Phillips 66 (PSX): Credit Suisse lowered their rating from Outperform to Neutral and raised their target price from $46.00 to $53.00. Pre-market: 45.74 -0.40 (-0.87%)

Marathon Petroleum (MPC): Credit Suisse lowered their rating from Outperform to Neutral and raised their target price from $63.00 to $65.00.

Abbott Labs (ABT): Leerink lowered their rating from Outperform to Market Perform and placed a target range of $65.00-$70.00. Pre-market: 68.77 -0.35 (-0.51%)

Alcoa (AA): Jefferies lowered their rating from Buy to Hold and maintained their target price of $11.00 on the company. Pre-market: 9.47 -0.11 (-1.15%)

Coverage Initiated

Watson Pharmaceuticals (WPI): Guggenheim initiated coverage with a Buy rating and target price of $100.00.

Teva Pharmaceuticals (TEVA): Guggenheim initiated coverage with a Neutral rating and target price of $45.00.

National Oilwell (NOV): William Blair Guggenheim initiated coverage with an Outperform rating.

Earning Reports

FedEx (FDX): Reported EPS of $1.45 beating estimates by +$0.05. Pre-market: 87.30 -1.98 (-2.22%)

Markets: 
Futures at 7:26: Dow -0.09%. S&P -0.19%. Nasdaq -0.11%. Crude -1.00% to $95.65. Gold -0.60% to $1759.80.

Europe: London -0.64%. Paris -0.74%. Frankfurt -0.75%. 

Asia: Japan -0.39%. Hong Kong -0.27%. China -0.91%. India -0.25%.