Morning Coffee Pre-Market Wall Street News

Ford Post Strong Q3 Profits. Ford Motor reports very strong Q3 profits, driven by strength in North America and smaller losses in Europe. The auto maker reported pre-tax earnings of $2.6 billion or EPS of $0.45, easily beating Wall Street estimates of only $0.37. Bob Shanks, Ford's chief financial officer said "North America continues to achieve strong profits and we saw significantly improved results outside North America."  He went on to say "We substantially reduced our losses in Europe, set a record third quarter profit in Asia Pacific Africa and saw a $150 million improvement in South America."

 The company also raised full-year guidance. It expects its full-year pre-tax profit to beat 2012 and expects its automotive operating margins to be higher than last year.

Ford also said it contributed $1.1 billion during Q3 to fund its pension plans worldwide. $700 million was contributed to its U.S. plans. Pre-market: 18.11 +0.59 (3.37%)

Upgrades:

Canadian Pacific Railway (CP): Desjardins raised their rating from Hold to Buy. Pre-market: 142.82 -0.17 (-0.12%)

Canadian Pacific Railway (CP): RBC Capital raised their rating from Underperform to Sector Perform. Pre-market: 142.82 -0.17 (-0.12%)

Eli Lilly (LLY): MKM Partners raised their rating from Neutral to Buy and placed a target price of $59.00 on the company.

Goldman Sachs (GS): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $163.00 to $181.00.

Downgrades:

Caterpillar (CAT): Raymond James lowered their rating from Outperform to Market Perform.

Caterpillar (CAT): JPMorgan lowered their rating from Overweight to Neutral and lowered its target price from $105.00 to $90.00.

Coach (COH): Atlantic Equities lowered their rating from Overweight to Neutral. Pre-market: 48.51 -0.04 (-0.08%)

Green Mountain Coffee Roasters (GMCR): Argus lowered their rating from Buy to Hold.

O”Reilly Automotive (ORLY): Raymond James lowered their rating from Strong Buy to Market Perform.

U.S. Bancorp (USB): Deutsche Bank raised their rating from Buy to Hold and raised their target price from $41.00 to $38.00.

Coverage Initiated:

21^st Century Fox (FOXA): Guggenheim initiated coverage with a Buy rating and target price of $41.00. Pre-market: 34.77 0.00 (0.00%)

CBS Corp (CBS): Guggenheim initiated coverage with a Buy rating and target price of $69.00.

CVS Caremark (CVS): FBR Capital initiated coverage with an Outperform rating and target price of $69.00.

Express Scripts (ESRX): FBR Capital initiated coverage with an Outperform rating and target price of $75.00.

News Corp (NWSA): Guggenheim initiated coverage with a Neutral rating and target price of $19.00.

Time Warner (TWX): Guggenheim initiated coverage with a Buy rating and target price of $80.00.

Viacom B (VIAB): Guggenheim initiated coverage with a Neutral rating and target price of $94.00.

Walgreen (WAG): FBR Capital initiated coverage with a Market Perform rating and target price of $62.00.

Walt Disney (DIS): Guggenheim initiated coverage with a Neutral rating and target price of $78.00.

Earning Reports:

3M (MMM): Reported EPS of $1.78 beating estimates by +$0.03. Pre-market: 123.50 +0.30 (0.24%)

Ball Corp (BLL): Reported EPS of $1.78 beating estimates by +$0.03.

Cabela’s (CAB): Reported EPS of $0.70 missing estimates by -$0.01. Pre-market: 59.82 -2.57 (-4.12%)

Celgene (CELG): Reported EPS of $1.56 beating estimates by +$0.03. Pre-market: 158.50 -1.50 (-0.94%)

Colgate-Palmolive (CL): Reported EPS of $0.73 in-line with estimates. Pre-market: 63.00 -0.47 (-0.74%)

Dow Chemical (DOW): Reported EPS of $0.50 missing estimates by -$0.04. Pre-market: 40.00 -1.04 (-2.53%)

Ford Motor (F): Reported EPS of $0.45 beating estimates by +$0.08. Pre-market: 18.11 +0.59 (3.37%)

Hershey Foods (HSY): Reported EPS of $1.04 beating estimates by +$0.03. Pre-market: 98.00 +1.15 (1.19%)

International Paper (IP): Reported EPS of $0.94 missing estimates by -$0.01. Pre-market: 44.63 +0.24 (0.54%)

Old Dominion Freight (ODFL): Reported EPS of $0.70 missing estimates by -$0.01. Pre-market: 47.00 -0.74 (-1.55%)

Potash (POT): Reported EPS of $0.41 in-line with estimates. Pre-market: 31.05 -0.65 (-2.05%)

Under Armour (UA): Reported EPS of $0.68 beating estimates by +$0.02. Pre-market: 78.97 -5.01 (-5.97%)

Xerox (XRX): Reported EPS of $0.26 beating estimates by +$0.01. Pre-market: 10.41 -0.32 (-2.98%)

Zimmer Hldgs (ZMH): Reported EPS of $1.25 beating estimates by +$0.01.

Markets: 
Futures at 6:20: Dow +0.4%. S&P +0.4%. Nasdaq +0.4%. Crude +0.4% to $97.27. Gold +0.1% to $1335.90. U.S. 10 Year +2/32 2.497%

Europe: London +0.4%. Paris +0.2%. Frankfurt +0.6%. 

Asia: Japan +0.4% to 14486. Hong Kong -0.7% to 22836. China -0.8% to 2165. India -0.2% to 20725. 

Morning Coffee Pre-Market Wall Street News

Netflix Shares Jump on EPS. Netflix's (NFLX) shares jumped after the company reported Q3 earnings that topped Wall Street estimates. Netflix reported EPS of $0.52, with net profit quadrupling to $32M. Revenue also came in at a strong $1.1 billion, up 22%.  The video service added 1.29M subscribers in the U.S. to give it 31.09M customers vs. the 30M that was expected. Pre-market: 381.48 +26.49 (7.46%)

Upgrades:

Kohl’s (KSS): Deutsche Bank raised their rating from Sell to Hold and raised their target price from $46.00 to $50.00.

Netflix (NFLX): Evercore raised their rating from Equal Weight to Overweight and placed a target price of $350.00 on the company. Pre-market: 381.48 +26.49 (7.46%)

Texas Instruments (TXN): FBR Capital raised their rating from Underperform to Market Perform and placed a target price of $38.00 on the company. Pre-market: 40.30 -0.69 (-1.68%)

Downgrades:

Advanced Micro Devices (AMD): Bernstein lowered their rating from Market Perform to Underperform and lowered their target price from $3.00 to $2.50. Pre-market: 3.31 -0.06 (-1.78%)

Gap (GAP): BMO Capital lowered their rating from Outperform to Market Perform and lowered their target price from $50.00 to $35.00.

Marriott International (MAR): MKM Partners lowered their rating from Buy to Neutral.

Nokia (NOK): Santander lowered their rating from Buy to Underweight.

Nokia (NOK): Nordea lowered their rating from Buy to Sell.

United States Steel (X): UBS lowered their rating from Buy to Neutral and lowered their target price from $25.00 to $22.00.

Coverage Initiated:

Expedia (EXPE): Credit Suisse initiated coverage with a Neutral rating and target price of $65.00.

Goodyear Tire (GT): CLSA initiated coverage with a Buy rating and target price of $29.00. Pre-market: 21.30 +0.18 (0.85%)

Halliburton (HAL): Iberia initiated coverage with an Outperform rating and target price of $70.00. Pre-market: 50.88 +0.22 (0.43%)

Priceline.com (PCLN): Credit Suisse initiated coverage with an Outperform rating and target price of $1250.00.

Earning Reports:

CIT Group (CIT): Reported EPS of $0.99 beating estimates by +$0.04. Pre-market: 52.00 +1.03 (2.02%)

Coach (COH): Reported EPS of $0.77 beating estimates by +$0.01. Pre-market: 50.25 -3.93 (-7.25%)

DuPont (DD): Reported EPS of $0.45 beating estimates by +$0.04. Pre-market: 59.40 -0.06 (-0.10%)

Forward Air (FWRD): Reported EPS of $0.46 in-line with estimates.

Harley-Davidson (HOG): Reported EPS of $0.73 in-line with estimates. Pre-market: 66.25 +0.68 (1.04%)

Kimberly-Clark (KMB): Reported EPS of $1.44 beating estimates by +$0.04. Pre-market: 101.50 +2.67 (2.70%)

Lockheed Martin (LMT): Reported EPS of $2.57 beating estimates by +$0.30. Pre-market: 128.85 +3.55 (2.83%)

Netflix (NFLX): Reported EPS of $0.52 beating estimates by +$0.03. Pre-market: 381.48 +26.49 (7.46%)

Ryder Systems (R): Reported EPS of $1.46 beating estimates by +$0.02.

State Street (STT): Reported EPS of $1.19 in-line with estimates.

Texas Instruments (TXN): Reported EPS of $0.56 beating estimates by +$0.03. Pre-market: 40.30 -0.69 (-1.68%)

VMware (VMW): Reported EPS of $0.84 beating estimates by +$0.02. Pre-market: 90.10 +7.45 (9.01%)

Markets: 
Futures at 7:14: Dow +0.03%. S&P +0.34%. Nasdaq +0.34%. Crude -0.40% to $98.82. Gold +1.27% to $1330.20. U.S. 10 Year +18/32 2.543%.

Europe: London +0.50%. Paris +0.38% Frankfurt +0.71%. 

Asia: Japan +0.13% to 14713. Hong Kong -0.52% to 23316. China -0.83% to 2211. India -0.14% to 20865. 

#RLPaler

Morning Coffee Pre-Market Wall Street News

Senate and House Set to Meet. The Senate and the House are due to hold sessions today even though its federal holiday; Congress was scheduled to be close in observance of Columbus Day. Over the weekend President Obama refused to negotiate with House Republicans and Senate Majority Leader Harry Reid (D) demanded that all previous spending cuts, known as sequester be added back into the budget.  U.S. Stock futures are lower this morning.

Upgrades:

Advance Micro Devices (AMD): Wedbush raised their rating from Neutral to Outperform and raised their target price from $4.50 to $5.00. Pre-market: 3.86 +0.03 (0.78%)

Dunkin Brands (DNKN): Miller Tabak raised their rating from Hold to Buy and raised their target price from $46.00 to $53.00. Pre-market: 45.80 +0.12 (0.26%)

Hyatt Hotels (H): ISI Group raised their rating from Neutral to Buy.

Iron Mountain (IRM): RW Baird raised their rating from Neutral to Outperform and placed a target price of $34.00 on the company. Pre-market: 25.42 +0.12 (0.47%)

Downgrades:

Coach (COH): Canaccord lowered their rating from Buy to Hold and lowered their target price from $65.00 to $62.00. Pre-market: 53.80 -0.79 (-1.45%)

Expedia (EXPE): Deutsche Bank lowered their rating from Buy to Hold and lowered their target price from $66.00 to $51.00. Pre-market: 50.00 -1.73 (-3.34%)

Merck & Co (MRK): Bernstein lowered their rating from Outperform to Market Perform. Pre-market: 46.86 -0.43 (-0.91%)

SABMIller plc (SBMRY): Citigroup lowered their rating from Buy to Neutral.

Coverage Initiated:

Capital One Financial (COF): SunTrust initiated coverage with a Buy rating and target price of $81.00. Pre-market: 71.77 -0.14 (-0.19%)

CIT Group (CIT): SunTrust initiated coverage with a Neutral rating and target price of $53.00.

Discover Financial (DFS): Deutsche Bank initiated coverage with a Buy rating and target price of $62.00.

Teva Pharmaceuticals (TEVA): Oppenheimer initiated coverage with a Perform rating. Pre-market: 40.25 -0.79 (-1.92%)

Markets: 
Futures at 7:55: Dow -0.68%. S&P -0.78%. Nasdaq -0.40%. Crude -0.53% to $101.48. Gold +1.58% to $1288.50. U.S. 10 Year 0/32 2.692%.

Europe: London +0.07%. Paris -0.30%. Frankfurt -0.28%. 

Asia: Japan +1.48% to 14404, Hong Kong +1.16% to 23218. China +0.43% to 2238. India +1.26% to 20528. 

#rlpaler