MORNING COFFEE

Alcoa Kicks Of Q3 Earnings Season. Alcoa (AA) kicked off the Q3 earnings season yesterday after the market close and reported EPS that beat estimates. The company posted adjusted earnings of $0.03 beating estimates by +$0.03 and down from $0.15 a year ago. Revenues came in at $5.83 billion beating estimates but down 9% from a year ago. Additionally, Alcoa cut its 2012 global aluminum demand forecast to 6% from 7%.Pre-market: 9.05 -0.08 (-0.88%)

Upgrades

True Religion (TRLG): KeyBanc Capital Markets raised their rating from Underweight to Hold. Pre-market: 26.10 +5.09 (24.23%)

Dominion Resources (D): Credit Suisse raised their rating from Neutral to Outperform and placed a target price of $59.00 on the company. Pre-market: 52.96 +0.14 (0.27%)

Volkswagen (VLKAY): Citigroup raised their rating from Neutral to Buy.

Ralph Lauren Polo (RL): Piper Jaffray raised their rating from Neutral to Overweight and raised their target price from $158.00 to $182.00.

Qualcomm (QCOM): BNP Paribas raised their rating from Neutral to Outperform. Pre-market: 60.43 +0.04 (0.07%)

Downgrades

Qualcomm (QCOM): DA Davidson lowered their rating from Buy to Hold and lowered their target price from $70.00 to $65.00. Pre-market: 60.43 +0.04 (0.07%)

Diamond Offshore (DO): FBR Capital lowered their rating from Outperform to Market Perform.

Home Depot (HD): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 60.40 -0.55 (-0.90%)

Viacom (VIAB): Bernstein lowered their rating from Market Perform to Underperform. Pre-market: 55.26 -0.96 (-1.71%)

CarMAx (KMX): Stephens lowered their rating from Overweight to Equal Weight and placed a target price of $33.00 on the company. Pre-market: 31.25 -0.37 (-1.17%)

Owens Corning (OC): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $38.00 to $31.50.

Tyco International (TYC): Credit Suisse lowered their rating from Outperform to Neutral and placed a target price of $30.00 on the company.

Coverage Initiated

Carlyle Group (CG): JPMorgan resumed coverage with an Overweight rating and target price of $29.50.

Earning Reports

Alcoa (AA): Reported EPS of $0.03 beating estimates by +$0.03. Pre-market: 8.99 -0.14 (-1.53%)

Yum! Brands (YUM): Reported EPS of $0.99 beating estimates by +$0.02. Pre-market: 69.20 +3.16 (4.78%)

Costco (COST): Reported EPS of $1.39 beating estimates by +$0.08. Pre-market: 102.60 +2.96 (2.97%)

Helen of Troy (HELE): Reported EPS of $0.72 missing estimates by -$0.14. Pre-market: 29.40 -2.55 (-7.98%)

Progressive (PGR): Reported EPS of $0.46 beating estimates by +$0.12. Pre-market: 21.76 +0.06 (0.28%)

Markets: 
Futures at 7:00: Dow -0.28%. S&P -0.03%. Nasdaq +0.16%. Crude +0.02% to $92.42. Gold +0.20% to $1768.50.

Europe: London -0.48%. Paris -0.27%. Frankfurt -0.20%. 

Asia: Japan -1.98%. Hong Kong -0.08%. China +0.22%. India -0.86%.