Morning Coffee Pre-Market Wall Street News

Cyprus Agrees to Bailout. Cyprus and the eurozone have agreed to a €10B bailout. The deal requires the Cyprus’s second largest bank Laiki will be closed and its operations folded into Bank of Cyprus. Laiki's senior bondholders will lose their investment, while Bank of Cyprus's creditors will also be affected. Additionally, deposits of over €100,000 will be hit with a tax of 30% or more. The rating agency Moody’s (MCO) said that despite the agreement Cyprus remains at risk of default.

Upgrades

Aflac (AFL): ResearchTeam raised their rating from Reduce to Hold. Pre-market: 52.00 +0.15 (0.29%)

Allstate (ALL): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $58.00 on the company.

Darden Restaurants (DRI): Stephens raised their rating from Equal Weight to Overweight and raised their target price from $52.00 to $60.00. Pre-market: 50.50 +0.88 (1.77%)

Diageo PLC (DEO): ResearchTeam raised their rating from Hold to Accumulate. Pre-market: 123.60 -0.29 (-0.23%)

Qualcomm (QCOM): ResearchTeam raised their rating from Hold to Accumulate. Pre-market: 66.26 +0.34 (0.52%)

Downgrades

Airgas (ARG): BofA Merrill Lynch lowered their rating from Neutral to Underperform and lowered their target price from $96.00 to $94.00. Pre-market: 96.88 -1.14 (-1.16%)

Check Point Software (CHKP): Lazard Capital lowered their rating from Buy to Neutral.

Cit Group (CIT): Compass Point lowered their rating from Buy to Neutral. Pre-market: 43.71 -0.05 (-0.11%)

Celgene (CELG): WallachBeth lowered their rating from Buy to Hold. Pre-market: 113.13 0.00 (0.00%)

JC Penney (JCP): BMO Capital lowered their rating from Market Perform to Underperform. Pre-market: 15.25 -0.18 (-1.17%)

International Game Tech (IGT): Macquarie lowered their rating from Outperform to Neutral and lowered their target price from $20.00 to $18.00.

Mylan (MYL): Bernstein lowered their rating from Outperform to Market Perform and placed a target price of $33.00 on the company.

Research In Motion (BBRY): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $19.00 to $17.00. Pre-market: 14.31 -0.60 (-4.02%)

Earning Reports:

Apollo Group (APOL): Reported EPS of $0.34 beating estimates by +$0.16. Pre-market: 19.01 +1.97 (11.56%)

Dollar General (DG): Reported EPS of $0.95 beating estimates by +$0.05. Pre-market: 52.00 +1.93 (3.85%)

JA Solar (JASO): Reported EPS of -$2.65 missing estimates by -$1.09. Pre-market: 3.86 -0.30 (-7.12%)

Markets: 
Futures at 7:45: Dow +0.26%. S&P +0.40%. Nasdaq +0.52%. Crude +0.53% to $94.21. Gold -0.38% to $1600.00.

Europe: London +0.90%. Paris +1.41%. Frankfurt +1.25%. 

Asia: Japan +1.69% to 12546. Hong Kong +0.61% to 22251. China -0.07% to 2327. India -0.29% to 18681.