MORNING COFFEE

Citigroup Gives U.S. Equities An Overweight Rating. Citigroup raised their rating on U.S. equities to “Overweight”.  The bank also expects U.S. equities to gain 12% by year-end citing "the combination of strong EPS momentum and a very aggressive central bank."

Spain’s Credit Rating Cut To Just Above Junk. Yesterday the credit rating agency S&P cut its credit rating on Spain to BBB- from BBB+.  The new rating is only one notch above junk status and the company maintained its negative outlook on the country. In their report S&P stated "The deepening economic recession is limiting the Spanish government's policy options."

Upgrades

FedEx (FDX): Standpoint Research raised their rating from Hold to Buy and placed a target price of $130.00 on the company. Pre-market: 91.48 +1.49 (1.66%)

Leap Wireless (LEAP): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $10.00 on the company. After Hours: 5.89 -0.01 (-0.17%)

Downgrades

Check Point Software (CHKP): Needham lowered their rating from Buy to Hold.

MetroPCS (PCS): Oppenheimer lowered their rating from Perform to Underperform. Pre-market: 11.95 -0.09 (-0.75%)

Caterpillar (CAT): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $105.00 to $95.00. Pre-market: 83.38 +0.22 (0.26%)

Texas Instruments (TXN): Credit Suisse lowered their rating from Outperform to Neutral and lowered their target price from $32.00 to $26.00. Pre-market: 27.00 -0.17 (-0.63%)

Coverage Initiated

Exxon Mobil (XOM): Dahlman Rose initiated coverage with a Buy rating and target price of $100.00. Pre-market: 91.60 +0.57 (0.63%)

Chevron (CVX): Dahlman Rose initiated coverage with a Hold rating. Pre-market: 112.86 +0.41 (0.36%)

Rite Aid (RAD): BTIG initiated coverage with a Buy rating and target price of $2.25. Pre-market: 1.18 +0.04 (3.51%)

Celgene (CLEG): Piper Jaffray lowered their rating from Overweight to Neutral and maintained their target price of $89.00. After Hours: 77.50 +0.14 (0.18%)

Earning Reports

Fastenal (FAST): Reported EPS of $0.37 in-line with estimates. After Hours: 42.00 -0.32 (-0.76%)

Winnebago Inds (WGO): Reported EPS of $0.14 missing estimates by -$0.04.

Markets: 
Futures at 6:56: Dow +0.33%. S&P +0.40%. Nasdaq +0.42%. Crude +0.96% to $92.15. Gold +0.44% to $1772.90.

Europe: London +0.59%. Paris +0.62%. Frankfurt +0.75%. 

Asia: Japan -0.58%. Hong Kong +0.38%. China -0.81%. India +0.93%.