Morning Coffee Pre-Market Wall Street News

U.S. Govt. Shutdown, Who Cares? Markets worldwide were mostly higher despite the U.S. government’s partial shutdown.  The last partial shutdown was over 17 years ago and lasted almost a month. The closure comes after the House and Senate could not agree upon a budget to fund what many consider a blotted government. Most services will remain open despite the shutdown leading many to say who cares? The IRS, postal service, and military will remain open. Additionally, social security and welfare checks will also go out as scheduled. Government agencies that are considered non-essential, which are very few, will be closed and the employees furloughed. A full list can be found at http://www.cnn.com/interactive/2013/09/politics/government-shutdown-impact/

Upgrades:

AFLAC (AFL): FBR Capitol raised their rating from Market Perform to Outperform and raised their target price from $60.00 to $71.00. Pre-market: 61.99 0.00 (0.00%)

Airgas (ARG): Global Hunter raised their rating from Neutral to Buy and raised their target price from $107.00 to $130.00.

Cree (CREE): Canaccord raised their rating from Hold to Buy. Pre-market: 62.48 +2.29 (3.80%)

Nike (NKE): Argus raised their rating from Hold to Buy and placed a target price of $84.00 on the company. Pre-market: 73.25 +0.61 (0.84%)

T-Mobile (TMUS): Oppenheimer raised their rating from Perform to Outperform. Pre-market: 26.25 +0.28 (1.08%)

Under Armour (UA): JPMorgan raised their rating from Underweight to Buy. Pre-market: 79.45 0.00 (0.00%)

Downgrades:

Agilent Technologies(A): Stifel lowered their rating from Buy to Hold and placed a target price of $52.00 on the company.

EOG Resources (EOG): Societe Generale lowered their rating from Hold to Sell and placed a target price of $160.00 on the company. Pre-market: 168.52 -0.76 (-0.45%)

Hess Corp (HES): Societe Generale lowered their rating from Buy to Hold and placed a target price of $86.00 on the company. Pre-market: 76.83 -0.51 (-0.66%)

JC Penney (JCP): Argus lowered their rating from Buy to Hold. Pre-market: 8.83 +0.02 (0.28%)

Coverage Initiated:

Advisory Board (ABCO): Keybanc initiated coverage with a Buy rating and target price of $72.00.

News Corp (NWSA): Evercore initiated coverage with an Equal Weight rating and target price of $18.00. Pre-market: 16.06 0.00 (0.00%)

Earning Reports:

Diamond Foods (DMND): Reported EPS of $0.09 beating estimates by +$0.12. Pre-market: 21.95 -1.60 (-6.79%)

Paychex (PAYX): Reported EPS of $0.44 beating estimates by +$0.01. Pre-market: 40.64 0.00 (0.00%)

Walgreens (WAG): Reported EPS of $0.73 in-line with estimates. Pre-market: 53.34 -0.46 (-0.86%)

Markets: 
Futures at 8:22: Dow +0.26%. S&P +0.27%. Nasdaq +0.26%. Crude -0.01% to $102.34. Gold -0.79% to $1317.20. U.S. 10 Year -10/32 2.646%.

Europe: London -0.45%. Paris +0.59%. Frankfurt +0.43%. 

Asia: Japan +0.20% to 14485. Hong Kong -1.50% to 22860, China closed. India +0.71% to 19517 

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

Microsoft Unveils Xbox One. Yesterday Microsoft (MSFT) unveiled the highly anticipated Xbox One calling it "the ultimate all-in-one entertainment system." The device allows usurers to instantly switch between games, live TV, movies, Skype and the internet using voice recognition and hand jesters. Xbox One also allows multi tasking such as watching TV and browsing the internet or taking a Skype call at the same time. The design is similar to set-top box and has an improved controller, improved Xbox Live UI, improved app and game loading. Switching times have been dramatically improved as you move to different application and the device has new voice and gesture controls.  Pre-market: 34.91 +0.06 (0.17%)

Upgrades

Bristol-Meyers Squibb (BMY): Citigroup raised their rating from Neutral to Buy and raised their target price from $33.00 to $55.00. Pre-market: 44.70 +0.64 (1.45%)

Cree (CREE): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $72.00 on the company. Pre-market: 61.90 +2.05 (3.43%)

Volvo (VOLVY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

Comerica (CMA): Oppenheimer lowered their rating from Perform to Underperform and placed a target price of $22.00 on the company. Pre-market: 39.00 -0.65 (-1.64%)

Dick’s Sporting Goods (DKS): BMO Capital lowered their rating from Outperform to Market Perform and placed a target price of $57.00 on the company. Pre-market: 52.34 -0.41 (-0.78%)

Research In Motion (BBRY): BNP Paribas lowered their rating from Neutral to Underperform. Pre-market: 14.59 -0.18 (-1.22%)

Soda Stream (SODA): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 63.30 -1.53 (-2.36%)

SunTrust Banks (STI): Oppenheimer lowered their rating from Outperform to Perform and placed a target price of $32.00 on the company. Pre-market: 32.15 0.00 (0.00%)

Coverage Initiated

Coca-Cola (KO): BMO Capital initiated coverage with a Market Perform rating and target price of $45.00. Pre-market: 42.54 +0.20 (0.47%)

Dr Pepper Snapple (DPS): BMO Capital initiated coverage with a Market Perform rating and target price of $48.00.

Monster Beverage (MNST): BMO Capital initiated coverage with an Outperform rating and target price of $65.00.

PepsiCo (PEP): BMO Capital initiated coverage with an Outperform rating and target price of $92.00. Pre-market: 82.64 +0.01 (0.01%)

Earning Reports

American Eagle (AEO): Reported EPS of $0.18 beating estimates by +$0.01. Pre-market: 19.96 -0.35 (-1.72%)

Analog Devices (ADI): Reported EPS of $0.52 in-line with estimates.

Compuware (CPWR): Reported EPS of -$0.30 missing estimates by -$0.35.

Dycom (DY): Reported EPS of $0.21 beating estimates by +$0.04. Pre-market: 23.89 +3.48 (17.05%)

Intuit (INTU): Reported EPS of $2.97 beating estimates by +$0.04. Pre-market: 58.64 +0.75 (1.30%)

Lowe's (LOW): Reported EPS of $0.49 missing estimates by -$0.01. Pre-market: 41.85 -0.60 (-1.41%)

NetApp (NTAP): Reported EPS of $0.69 beating estimates by +$0.01. Pre-market: 38.85 +2.22 (6.06%)

Staples (SPLS): Reported EPS of $0.26 missing estimates by -$0.01. Pre-market: 14.36 -0.39 (-2.64%)

Target (TGT): Reported EPS of $0.77 missing estimates by -$0.10. Pre-market: 69.69 -1.57 (-2.20%)

Markets: 
Futures at 7:00: Dow +0.12%. S&P +0.17%. Nasdaq +0.17%. Crude -0.93% to $95.81. Gold +0.62% to $1386.00.

Europe: London -0.16%. Paris -0.43%. Frankfurt -0.18%. 

Asia: Japan +1.60% to 15627. Hong Kong -0.45% to 23261. China -0.12% to 2302. India -0.25% to 20062.