MORNING COFFEE

Feds Investigate CVS Caremark. Reports say that CVS Caremark (CVS) is currently be investigated by federal official for possibly violating Medicare laws. Allegations against CVS say that the company refilled prescriptions without receiving prior approval from patients.

Upgrades

Walmart (WMT): Jefferies raised their rating from Hold to Buy and raised their target price from $74.00 to $88.00. Pre-market: 75.30 +0.29 (0.39%)

Dean Foods (DF): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $18.00 on the company. Pre-market: 15.14 +0.49 (3.34%)

LinkedIn (LNKD): Evercore raised their rating from Equal Weight to Overweight and raised their target price from $115.00 to $160.00. Pre-market: 115.75 +1.98 (1.74%)

Downgrades

Tyco (TYC): Imperial Capita lowered their rating from Outperform to In-line and placed a target price of $30.00 on the company. Pre-market: 27.18 -0.28 (-1.02%)

Dollar Tree (DLTR): Buckingham lowered their rating from Buy to Hold. Pre-market: 42.40 -0.88 (-2.03%)

Dollar Tree (DLTR): Jefferies lowered their rating from Buy to Hold and lowered their target price from $58.00 to $41.00. Pre-market: 42.40 -0.88 (-2.03%)

Eli Lilly (LLY): Cowen lowered their rating from Neutral to Underweight. Pre-market: 50.01 -0.59 (-1.17%)

Sonic Corp (SONC): Cowen lowered their rating from Outperform to Neutral. Pre-market: 9.59 -0.22 (-2.24%)

Wendy’s (WEN): Cowen lowered their rating from Outperform to Neutral.

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

Titanium Metals (TIE): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $16.00 to $13.00. Pre-market: 12.23 -0.20 (-1.61%)

Western Digital (WDC): Citigroup lowered their rating from Buy to Sell and lowered their target price from $53.00 to $32.00. Pre-market: 35.56 -1.03 (-2.81%)

Seagate Technology (STX): Citigroup lowered their rating from Buy to Sell and lowered their target price from $37.00 to $25.00. Pre-market: 27.40 -0.85 (-3.01%)

Coverage Initiated

Kraft Food Group (KRFT): Janney Capital initiated coverage with a Neutral rating and target price of $46.00. Pre-market: 46.46 0.00 (0.00%)

Mondelez (MDLZ): Janney Capital initiated coverage with a Neutral rating and target price of $26.00.

General Electric (GE): Deutsche Bank initiated coverage with a Buy rating and target price of $26.00. Pre-market: 22.58 +0.07 (0.31%)

Capital One (COF): RW Baird initiated coverage with an Overweight rating and placed a target price of           $70.00 on the company. Pre-market: 58.84 -0.05 (-0.08%)

Zimmer Holdings (ZMH): JMP Securities initiated coverage with an Outperform rating and target price of $76.00.

Stryker (SYK): JMP Securities initiated coverage with a Market Perform rating.

Earning Reports

JB Hunt Trans (JBHT): Reported EPS of $0.65 missing estimates by -$0.01. Pre-market: 57.61 +2.82 (5.15%)

JPMorgan Chase (JPM): Reported EPS of $1.40 beating estimates by +$0.19. Pre-market: 41.89 -0.21 (-0.50%)

Wells Fargo (WFC): Reported EPS of $0.88 beating estimates by +$0.01. Pre-market: 34.15 -1.03 (-2.93%)

Markets: 

Futures at 7:00: Dow +0.18%. S&P +0.36%. Nasdaq +0.21%. Crude +0.20% at $92.25. Gold +0.01% to $1770.80.

Asia: Japan -0.15% to 8534. Hong Kong +0.65% to 21136. China +0.10% to 2105. India -0.69% to 18675. 

Europe: London -0.39%. Paris -0.45%. Frankfurt -0.37%.