MORNING COFFEE

U.S. Postal Service Defaults on Payment.  The Postal Service has defaulted on a $5.6 billion payment to its retirement fund. The payment was due at the end of September.  The Postal Service had already missed a payment earlier this year.  The total of missed payments now stands at over $10.7 billion.  The agency has also forecast net operating losses of $15 billion for FY 2012. The Postal Service has been hit hard as more people use the internet to communicate and retiree pension cost accelerate.

Upgrades
Synaptics (SYNA): Felti & Co. raised their rating from Sell to Hold.

Cisco Systems (CSCO): MKM Partners raised their rating from Neutral to Buy and placed a target price of $24.00 on the company.

Downgrades
Intl Rectifier (IRF): FBR Capital lowered their rating from Outperform to Market Perform.

IDEX Corp (IEX): Oppenheimer lowered their rating from Outperform to Perform.

Baker Hughes (BHI): Tudor Pickering lowered their rating from Buy to Accumulate. Pre-market: 44.83 -0.22 (-0.49%)

Old Dominion Freight (ODFL): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $50.00 to $30.00.

Coverage Initiated
ADT (ADT): Imperial Capital initiated coverage with an Outperform rating and target price of $41.00.

Kraft Foods (KRFT): Stifel Nicolaus initiated coverage with a Buy rating and target price of $49.00.

Kraft Foods (KRFT): Credit Suisse initiated coverage with an Outperform rating and target price of $50.00.

Kraft Foods (KRFT): Jefferies initiated coverage with a Buy rating and target price of $50.00.

Kraft Foods (KRFT): Citigroup initiated coverage with a Neutral rating and target price of $48.00.

Las Vegas Sands (LVS): ISI Group initiated coverage with a Hold rating and target price of $50.00. Pre-market: 46.40 +0.26 (0.56%)

MGM Resports (MGM): ISI Group initiated coverage with a Buy rating and target price of $13.00. Pre-market: 10.80 +0.11 (1.03%)

Wynn Resorts (WYNN): ISI Group initiated coverage with a Buy rating and target price of $145.00.

Earning Reports
Mosaic (MOS): Reported EPS of $1.01 missing estimates by -$0.15. Pre-market: 56.30 -1.71 (-2.95%)

Markets:
Futures at 8:32: Dow +0.29%. S&P +0.44%. Nasdaq +0.39%. Crude +0.28% to $92.77. Gold -0.17% to $1780.30.

Europe: London +0.15%. Paris +0.24%. Frankfurt +0.33%.

Asia: Japan -0.12%. China closed. Hong Kong closed. India closed.