Morning Coffee Pre-Market Wall Street News

SEC Investigating Heinz Trades. Reports say that the SEC is investigating unusual option trading activity in Heinz (HNZ). On Tuesday, one day before the announcement that the company is being bought by Berkshire Hathaway (BRK.A / BRK.B) and 3G Capital for $28 billion, or $72.50 a share there was a large spike in call option trades. A Heinz $65 call option expiring on June 22 apparently had a volume of 2,593 contracts vs an average over the prior 20 days of 13 contracts. HNZ Pre-market: 72.42 -0.08 (-0.11%) BRK.B Pre-market: 99.35 +0.14 (0.14%)

Upgrades

NETGEAR (NTGR): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $41.00 on the company.

Pacific Sunwear (PSUN): DA Davidson raised their rating from Neutral to Buy and raised their target price from $2.20 to $3.50.

Downgrades

Aqua America (WTR): HSBC lowered their rating from Overweight to Neutral. Pre-market: 28.36 -0.27 (-0.94%)

Coinstar (CSTR): Compass Point lowered their rating from Buy to Neutral and placed a target price of $55.00 on the company.

DIRECTV (DTV): ISI Group lowered their rating from Buy to Neutral. Pre-market: 50.00 -0.21 (-0.42%)

LogMeIn (LOGM): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $47.00 to $22.00. Pre-market: 17.60 -6.06 (-25.61%)

LogMeIn (LOGM): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price to $29.00. Pre-market: 17.60 -6.06 (-25.61%)

T. Row Price (TROW): Susquehanna lowered their rating from Positive to Neutral and lowered their target price from $55.00 to $49.00.

Coverage Initiated

Abbott Labs (ABT): Stifel Nicolaus initiated coverage with a Buy rating and target price of $40.00.

Emerson Electric (EMR): RBC Capital initiated coverage with an Outperform rating and target price of $70.00.

Earning Reports

American Electric (AEP): Reported EPS of $0.50 beating estimates by $+$0.05.

Burger King (BKW): Reported EPS of $0.23 beating estimates by +$0.08. Pre-market: 17.60 +1.02 (6.15%)

Campbell Soup (CPB): Reported EPS of $0.70 beating estimates by +$0.04. Pre-market: 38.30 -0.42 (-1.08%)

CBS (CBS): Reported EPS of $0.64 missing estimates by -$0.06. Pre-market: 42.34 -0.60 (-1.40%)

J.M. Smucker (SJM): Reported EPS of $1.47 beating estimates by +$0.08. Pre-market: 92.18 +0.02 (0.02%)

Kraft Foods (KRFT): Reported EPS of $0.57 beating estimates by +$0.04. Pre-market: 47.14 -0.02 (-0.04%)

LogMeIn (LOGM): Reported EPS of $0.24 beating estimates by +$0.06. Pre-market: 17.60 -6.06 (-25.61%)

Masimo (MASI): Reported EPS of $0.26 missing estimates by -$0.02.

Markets: 
Futures at 7:42: Dow -0.08%. S&P -0.12%. Nasdaq -0.09%. Crude -0.47% to $96.85. Gold -0.47% to $1627.90.

Europe: London +0.10%. Paris +0.07%. Frankfurt -0.15%. 

Asia: Japan -1.18% to 11174. Hong Kong +0.13% to 23445. China closed. India -0.15% to 19468.