Morning Coffee Pre-Market Wall Street News

Eurozone Exits Recession. Things just got better for Europe and the world economy. The Eurozone GDP expanded by +0.3% in Q2, topping economist estimates and ending the Eurozone’s recession. Germany’s GDP expanded by +0.7% exceeding estimates and Q1’s flat GDP. Frances GDP came in at +0.5% vs. -0.2% in Q1, which beat estimates. Surprising the market was Portugal Q2 GDP which came in at +1.1% vs -0.4% in Q1 and economists consensus of -0.15%.

Upgrades:

GlaxoSmithKline (GSK): JPMorgan raised their rating from Underweight to Neutral. Pre-market: 52.36 +0.35 (0.67%)

Marvell Tech (MRVL): B Riley raised the rating from Neutral to Buy.

Downgrades:

Aeropostale (ARO): KeyBanc lowered their rating from Hold to Underweight and placed a target price of $10.00 on the company.

AMR Corp. (AAMRQ): JPMorgan lowered their rating from Overweight to Neutral.

Cree (CREE): Northland Securities lowered their rating from Outperform to Market Perform and lowered their target price from $63.00 to $61.00. Pre-market: 63.70 -12.06 (-15.92%)

Cree (CREE): Susquehanna lowered their rating from Positive to Neutral. Pre-market: 63.70 -12.06 (-15.92%)

Cree (CREE): DA Davidson lowered their rating from Buy to Neutral and lowered their target price from $79.00 to $65.00. Pre-market: 63.70 -12.06 (-15.92%)

Delta Airlines (DAL): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 19.46 -0.09 (-0.46%)

ENSCO PLC (ESV): ISI Group lowered their rating from Buy to Neutral.

Noble Corp (NE): ISI Group lowered their rating from Strong Buy to Neutral.

Transocean (RIG): ISI Group lowered their rating from Strong Buy to Neutral. Pre-market: 47.39 -0.13 (-0.27%)

US Airways (LCC): Deutsche Bank lowered their rating from Buy to Hold. Pre-market: 16.31 -0.05 (-0.31%)

US Airways (LCC): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 16.31 -0.05 (-0.31%)

Western Union (WU): JPMorgan lowered their rating from Neutral to Underweight and lowered their target price from $18.00 to $17.00.

Coverage Initiated:

WisdonTree Investments (WETF): Susquehanna initiated coverage with a Neutral rating and target price of $13.00.

Earning Reports:

Brocade (BRCD): Reported EPS of $0.19 beating estimates by +$0.07. Pre-market: 7.72 +0.82 (11.88%)

Cree (CREE): Reported EPS of $0.38 beating estimates by +$0.01. Pre-market: 63.70 -12.06 (-15.92%)

Deere (DE): Reported EPS of $2.56 beating estimates by +$0.40. Pre-market: 84.60 +0.69 (0.82%)

Jack Henry (JKHY): Reported EPS of $0.55 beating estimates by +$0.03. After Hours: 50.80 +0.03 (0.06%)

Macy's (M): Reported EPS of $0.82 beating estimates by +$0.04. Pre-market: 46.89 -1.61 (-3.32%)

Towers Watson (TW): Reported EPS of $1.36 beating estimates by +$0.09.

Markets: 
Futures at 6:20: Dow -0.13%. S&P -0.15%. Nasdaq -0.12%. Crude -0.70% to $106.10. Gold +0.35% to $1325.10. U.S. 10 Year +1/32 2.722%.

Europe: London -0.11%. Paris +0.36%. Frankfurt +0.12%. 

Asia: Japan +1.32% to 14050. Hong Kong closed. China -0.29% to 2100. India +0.72% to 19368. 

Morning Coffee Pre-Market Wall Street News

Shineway in Talks with Smithfield Foods. China based Shineway has been reported to be in talks with Smithfield Foods (SFD) to purchase the company in a deal worth $4.5-5 billion. The acquisition if completed would represent a 25-30% premium over Smithfield's close yesterday of $25.97. Pre-market: 32.34 +6.37 (24.53%)

Upgrades

Analog Devices (ADI): Citigroup raised their rating from Neutral to Buy and raised their target price from $48.00 to $54.00. Pre-market: 45.60 +0.12 (0.26%)

Microchip Tech (MCHP): Citigroup raised their rating from Neutral to Buy and raised their target price from $39.00 to $47.00.

Peugot SA (PEUGY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

Brocade (BRCD): Morgan Stanley lowered their rating from Equal Weight to Underweight and placed a target price of $4.50 on the company. Pre-market: 5.25 -0.13 (-2.42%)

Comerica (CMA): Wunderlich lowered their rating from Buy to Hold and placed a target price of $40.00 on the company.

Coverage Initiated

Flagstar Bancorp (FBC): BTIG initiated coverage with a Buy rating and target price of $18.00.

SeaWorld Entertainment (SEAS): Lazard Capital initiated coverage with a Neutral rating. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): Macquarie initiated coverage with an Outperform rating and target price of $44.00. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): KeyBank initiated coverage with a Buy rating and target price of $45.00. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): JPMorgan initiated coverage with a Neutral rating and target price of $41.00. Pre-market: 37.00 -0.71 (-1.88%)

Earning Reports

Bank of Montreal (BMO): Reported EPS of $1.46 missing estimates by -$0.04. Pre-market: 60.70 -0.51 (-0.83%)

Brown Shoes (BWS): Reported EPS of $0.32 beating estimates by +$0.10.

Chico's FAS (CHS): Reported EPS of $0.32 missing estimates by -$0.04. Pre-market: 18.18 -1.16 (-6.00%)

Movado Group (MOV): Reported EPS of $0.28 beating estimates by +$0.06.

Trina Solar (TSL): Reported EPS of -$0.90 missing estimates by -$0.16.

Wet Seal (WTSL): Reported EPS of $0.03 beating estimates by +$0.03. Pre-market: 4.66 +0.16 (3.56%)

Markets: 
Futures at 8:30: Dow -0.39%. S&P -0.54%. Nasdaq -0.45%. Crude -0.69% to $94.35. Gold +0.66% to $1388.10.

Europe: London -1.47%. Paris -1.22%. Frankfurt -1.42%. 

Asia: Japan +0.10% to 14326. Hong Kong -1.61% to 22555. China +0.12% to 2324. India -0.07% to 20148.