Morning Coffee Pre-Market Wall Street News

Cisco’s Profits Soar. After the market close yesterday Cisco (CSCO) reported FQ1 results beat analyst expectations. Net profits at the company soared 18% to $2.1 billion with EPS of $0.48. Revenues at the company also rose 6% to $11.9 billion. The company also gave FQ2 guidance that was in line with Wall Street estimates. Pre-market: 18.05 +1.20 (7.12%)

"European Day of Action and Solidarity" Hits The Eurozone.  In their first coordinated efforts unions across the EU plan to hold a "European Day of Action and Solidarity" by striking. The strikes are the result of austerity programs put in place due to the eurozone debt crisis. Millions of union workers are expected to take part across Spain and Portugal. In addition to protest in Spain and Portugal union workers in Greece, Italy, France and Belgium plan work stoppages and demonstrations.

Upgrades

Cisco Systems (CSCO): Pacific Crest raised their rating from Sector Perform to Outperform. Pre-market: 18.05 +1.20 (7.12%)

Royal Caribbean (RCL): Argus raised their rating from Hold to Buy and placed a target price of $40.00 on the company. Pre-market: 34.72 +0.18 (0.52%)

Downgrades

Mosaic (MOS): Canaccord lowered their rating from Buy to Hold and lowered their target price from $65.00 to $55.00. Pre-market: 48.10 -2.65 (-5.22%)

Home Depot (HD): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 63.17 -0.21 (-0.33%)

Barrick Gold (ABX): Argus lowered their rating from Buy to Hold. Pre-market: 35.30 +0.01 (0.03%)

JC Penney (JCP): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $30.00 to $20.00. Pre-market: 17.45 +0.05 (0.29%)

Coverage Initiated

Marathon Petroleum (MPC): Imperial Capital initiated coverage with an Outperform rating and target price of $64.00 on the company.

Baxter International (BAX): Bernstein initiated coverage with an Outperform rating and target price of $79.00.

Earning Reports

Cisco Systems (CSCO): Reported EPS of $0.48 beating estimates by +$0.02. Pre-market: 18.13 +1.28 (7.60%)

Abercrombie & Fitch (ANF): Reported EPS of $0.87 beating estimates by +$0.27. Pre-market: 40.95 +9.77 (31.33%)

Staples (SPLS): Reported EPS of $0.46 beating estimates by +$0.01. Pre-market: 11.75 +0.50 (4.44%)

Tyco (TYC): Reported EPS of $0.33 missing estimates by -$0.03. Pre-market: 26.70 -0.63 (-2.31%)

Markets: 
Futures at 7:18: Dow +0.45%. S&P +0.23%. Nasdaq +0.45%. Crude -0.07% to $85.30. Gold -0.08% to $1723.50.

Europe: London -0.57%. Paris -0.43%. Frankfurt -0.34%. 

Asia: Japan +0.04% at 8665. Hong Kong +1.20% to 21442. China +0.37% to 2055. India closed.