Morning Coffee Pre-Market Wall Street News

Wall Street Holds Its Breath As Obama Moves “Forward.” As soon as it was evident that President Obama would win re-election stock futures headed lower and when trading began yesterday stocks were hit hard.  The market fell 312.95 points or -2.36% as traders became worried about the administration’s economic policies and the possibility of gridlock in Washington causing the fiscal cliff to become reality.  Stock futures are higher today as traders hope that a deal can be worked out before year end.  The current expectation is that taxes will be raised with the promise that spending cuts will be addressed sometime in the future, while the $16 trillion debt bomb will be ignored. If taxes are raised economist worry that the already fragile economy could stunt economic growth and push the U.S. into another recession.

Upgrades

Transocean (RIG): Argus raised their rating from Hold to Buy and placed a target price of $62.00 on the company. Pre-market: 48.36 +0.54 (1.13%)

Bank of America (BAC): ISI Group raised their rating from Hold to Buy and placed a target price of $12.00 on the company. Pre-market: 9.39 +0.16 (1.73%)

MetroPCS (PCS): Macquarie raised their rating from Neutral to Outperform and placed a target price of $12.00 on the company. Pre-market: 10.08 +0.25 (2.54%)

Chiquita Brands (CQB): Janney Capital raised their rating from Neutral to Buy and placed a target price of $15.00 on the company. Pre-market: 7.32 +0.18 (2.52%)

Southern Company (SO): RBC Capital raised their rating from Sector Perform to Outperform and placed a target price of $49.00 on the company.

Consolidated Edison (ED): RBC Capital raised their rating from Underperform to Sector Perform and raised their target price from $60.00 to $63.00. Pre-market: 56.38 +0.12 (0.21%)

Downgrades

Perrigo (PRGO): Caris & Company lowered their rating from Buy to Above Average and lowered their target price from $136.00 to $129.00.

Illinois Tool Works (ITW): ISI Group lowered their rating from Buy to Hold and lowered their target price from $67.00 to $62.00.

Coverage Reiterated/Price Target Changed

U.S. Steel (X): Argus reiterated their Buy rating and lowered their target price from $36.00 to $31.00. Pre-market: 21.75 +0.19 (0.88%)

Qualcomm (QCOM): Cantor Fitzgerald reiterated their Buy rating and raised their target price from $66.00 to $69.00. Pre-market: 62.80 +4.68 (8.05%)

Qualcomm (QCOM): FBR Capital reiterated their Outperform rating and raised their target price from $72.00 to $77.00. Pre-market: 62.80 +4.68 (8.05%)

Earning Reports

Mondelez Int'l (MDLZ): Reported EPS of $0.37 beating estimates by +$0.01. Pre-market: 26.03 -0.22 (-0.84%)

Qualcomm (QCOM): Reported EPS of $0.89 beating estimates by +$0.07. Pre-market: 62.80 +4.68 (8.05%)

Dean Foods (DF): Reported EPS of $0.33 beating estimates by +$0.05. Pre-market: 17.00 +0.92 (5.72%)

Kohl’s (KSS): Reported EPS of $0.91 beating estimates by +$0.04. Pre-market: 53.25 -1.07 (-1.97%)

Magna (MGA): Reported EPS of $1.66 beating estimates by +$0.63.

Tim Hortons (THI): Reported EPS of $0.72 in-line with estimates.

Wendy’s (WEN): Reported EPS of $0.03 missing estimates by -$0.02. Pre-market: 4.37 +0.11 (2.58%)

Markets: 
Futures at 7:25: Dow +0.17%. S&P +0.40%. Nasdaq +0.34%. Crude +1.20% to $85.46. Gold +0.34% to $1719.50.

Europe: London +0.20%. Paris +0.62%. Frankfurt +0.37%. 

Asia: Japan -1.51% to 8837. Hong Kong -2.41% to 21567. China -1.63% to 2072. India -0.30% to 18846.