Morning Coffee Pre-Market Wall Street News

Tablets outpace PC’s. The research firm IDC announced that their research shows that shipments of tablet computers will outstrip those of PCs for the first time ever in Q4. The firm estimates that deliveries of tablets will reach 84.1M units and PC’s shipments will total only 83.1M. Companies that are expected to benefit from this trend include Apple (AAPL), Google (GOOG), and Samsung (SSNLF), while companies that will be hurt from this trend include Dell (DELL), H-P (HPQ), and Microsoft (MSFT).  IDC also estimates that the total market for Internet-connected devices of desktops, laptops, smartphones and tablets is projected to grow 28% to $622.4B in 2013 and then grow to $735.1B in 2015.

Upgrades:

Allstate (ALL): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $48.00-$52.00 to $58.00-$62.00.

SunTrust Bank (STI): Compass Point raised their rating from Neutral to Buy. Pre-market: 33.41 +0.15 (0.45%)

Wendy’s (WEN): Argus raised their rating from Hold to Buy and placed a target price of $10.00 on the company. Pre-market: 8.48 +0.23 (2.79%)

Zynga (ZNGA): Evercore raised their rating from Underweight to Equal Weight. Pre-market: 3.06 +0.06 (2.00%)

Downgrades:

AB InBev (BUD): Normura lowered their rating from Neutral to Reduce. Pre-market: 96.33 -1.32 (-1.35%)

Apple (AAPL): Credit Suisse lowered their rating from Outperform to Neutral. Pre-market: 471.00 +3.29 (0.70%)

Ericsson (ERIC): Goldman Sachs lowered their rating from Conviction Buy to Buy.

Halliburton (HAL): Macquarie lowered their rating from Outperform to Neutral and lowered their target price from $54.00 to $51.00. Pre-market: 49.76 -0.43 (-0.86%)

SABMiller PLC (SBMRY): Normura lowered their rating from Neutral to Reduce.

Symantec (SYMC): Morgan Stanley lowered their rating from Overweight to Equal Weight. Pre-market: 24.71 -0.55 (-2.18%)

Travelers Cos. (TRV): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $94.00-$98.00 to $92.00-$89.00. Pre-market: 83.20 -0.53 (-0.63%)

Coverage Initiated:

Aqua America (WTR): Ladenburg Thalmann initiated coverage with a Buy rating and target price of $28.00.

American Water Works (AWK): Ladenburg Thalmann initiated coverage with a Buy rating and target price of $50.00.

Expedia (EXPE): Janney Capital initiated coverage with a Neutral rating and target price of $53.00.

Priceline.com (PLCN): Janney Capital initiated coverage with a Neutral rating and target price of $925.00. Pre-market: 983.00 +1.44 (0.15%)

Markets: 
Futures at 7:59: Dow +0.04%. S&P -0.05%.  Nasdaq +0.16%. Crude +0.73% to $108.34. Gold -1.73% to $1340.00. U.S. 10 Year +4/32 2.898%.

Europe: London +0.12%. Paris -0.16%. Frankfurt +0.09%. 

Asia: Japan -0.26% to 14387. Hong Kong +0.07% to 22954. China +0.64% to 2256. India -1.08% to 1978 

Morning Coffee Pre-Market Wall Street News

U.S. Housing Numbers Miss Estimates. The Commerce Department reported that July’s housing starts rose 5.9% to a seasonally adjusted annual rate of 896,000 units. Wall Street Economists had estimated that housing starts would come in at 900,000 units. June's numbers were revised upward to 846,000-units from the previously reported. Permits to build new homes increased 2.7% in July to a 943,000-unit pace also missing estimates. Economists had expected permits to rise to 945,000. Wall Street analysts are pointing to higher interest rates as the cause of the misses.

Upgrades:

Applied Materials (AMAT): DA Davidson raised their rating from Neutral to Buy and raised their target price from $15.00 to $18.00.

JetBlue Airlines (JBLU): Raymond James raised their rating from Underperform to Market Perform.

Pandora Media (P): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $27.00 on the company.

Wal-Mart (WMT): S&P raised their rating from 3 Stars to 4 Stars.

Downgrades:

Alcoa (AA): Bank of America Merrill Lynch lowered their rating from Neutral to Underperform and placed a target price of $8.00 on the company.

Colgate-Palmolive (CL): Argus lowered their rating from Buy to Hold.

General Mills (GIS): Jefferies lowered their rating from Hold to Underperform and lowered their target price from $45.00 to $44.00.

Noble Energy (NE): ISI Group lowered their rating from Strong Buy to Buy and placed a target price of $67.00 on the company.

Nordstrom (JWN): Sterne Agee lowered their rating from Buy to Neutral and placed a target price of $62.00 on the company.

Transocean (RIG): Johnson Rice lowered their rating from Overweight to Underweight.

Coverage Initiated:

Xcel Energy (XEL): UBS initiated coverage with a Neutral rating and target price of $30.00.

Earning Reports:

Applied Materials (AMAT): Reported EPS of $0.18 missing estimates by -$0.01.

Dell (DELL): Reported EPS of $0.25 beating estimates by +$0.01.

Nordstrom (JWN): Reported EPS of $0.93 beating estimates by +$0.05.

Markets: 
Futures at 9:01: Dow 0.00%. S&P +0.10%. Nasdaq +0.27%. Crude +0.08% to $107.44. Gold +0.34% at $1365.40. U.S. 10 Year -1/32 2.778%

Europe: London 0.00%. Paris +0.06%. Frankfurt -0.36%. 

Asia: Japan -0.75% to 13650. Hong Kong -0.10% to 22518. China -0.65% to 2068. India -3.97% to 18618.