Morning Coffee Pre-Market Wall Street News

IBM Furloughs Workers. IBM (IBM) announced that it will have a majority of its U.S. hardware workers to take a week off at lower pay.  This announcement comes as the company tries to slash costs in the face of weak sales. IBM's hardware sales slumped 17% year-over-year in Q1 and 12% in Q2. The company’s sales have been hurt by falling UNIX server demand as companies shift their IT hardware spending towards cloud-service companies.

Upgrades:

Fiserv (FISV): First Analysts raised their rating from Equal Weight to Overweight.

Old Dominion Freight (ODFL): RBC Capital raised their rating from Sector Perform to Outperform.

Downgrades:

American Eagle Outfitters (AEO): B. Riley lowered their rating from Buy to Neutral and lowered their target price from $26.00 to $17.50.

American Eagle Outfitters (AEO): Brean Capital lowered their rating from Buy to Hold.

IBM (IBM): Credit Suisse lowered their rating from Neutral to Underperform and lowered their target price from $200.00 to $175.00.

Sony (SNE): Hudson Square lowered their rating from Buy to Hold.

Unilever (UN/UL): JPMorgan lowered their rating from Overweight to Neutral.

Coverage Initiated:

CDW Corp (CDW): William Blair initiated coverage with an Outperform rating.

CDW Corp (CDW): Raymond James initiated coverage with an Outperform rating.

CDW Corp (CDW): Stifel initiated coverage with a Buy rating and target price of $24.00.

Earning Reports:

Cognizant Tech (CTSH): Reported EPS of $1.07 beating estimates by +$0.02.

CVS Caremark (CVS): Reported EPS of $0.97 beating estimates by +$0.01.

DISH Network (DISH): Reported EPS of -$0.02 missing estimates by -$0.56.

Emerson (EMR): Reported EPS of $1.04 beating estimates by +$0.06.

Fossil (FOSL): Reported EPS of $1.10 beating estimates by +$0.16.

Henry Schein (HSIC): Reported EPS of $1.23 missing estimates by -$0.01.

MGM Resorts (MGM): Reported EPS of $0.04 beating estimates by +$0.01.

Tenet Healthcare (THC): Reported EPS of $0.66 missing estimates by -$0.05.

Tidewater (TDW): Reported EPS of $0.68 missing estimates by -$0.09.

Markets: 
Futures at 8:37: Dow -0.14%. S&P -0.16%. Nasdaq +0.04%. Crude +1.00% to $106.87. Gold -1.08% to $1288.30. U.S. 10 Year -4/32 2.657%

Europe: London -0.01%. Paris +0.15%. Frankfurt -0.11%. 

Asia, Japan +1.00% to 14401. Hong Kong -1.34% to 21924. China +0.49% to 2061. India -2.34% to 18,736.