Gun Sales Propel Smith & Wesson. Smith & Wesson's (SWHC) reported FQ2 earnings of $0.28 beating estimates by a wide margin.  The company also issued higher-than-expected FQ3 guidance. Revenue for the weapons manufacture rose 2% to $139.3M, while income from continuing operations increased to $17.1M. Sales of handguns at the company continue to climb, up a whopping +27% as people rush to purchase weapons for self protects and amid a fresh push for gun control. Pre-market: 12.76 +0.64 (5.28%)

Upgrades:

3M Co. (MMM): Nomura raised their rating from Neutral to Buy and placed a target price of $150.00 on the company. Pre-market: 128.15 +0.60 (0.47%)

Cardinal Health (CAH): Leerink raised their rating from Market Perform to Outperform and raised their target price from $64.00 to $75.00.

General Dynamics (GD): CRT Capital raised their rating from Sell to Fair Value and placed a target price of $89.00 on the company.

Downgrades:

Scripps Networks (SNI): Citigroup lowered their rating from Neutral to Sell. Pre-market: 81.02 +5.77 (7.67%)

Coverage Initiated:

Cisco Systems (CSCO): Mizuho initiated coverage with a Neutral rating and placed a target price of $23.00 on the company.

Cisco Systems (CSCO): Citigroup initiated coverage with a Sell rating and placed a target price of $18.00 on the company.

Ericsson (ERIC): Mizuho initiated coverage with a Buy rating and placed a target price of $15.00 on the company. Pre-market: 11.88 -0.06 (-0.50%)

Motorola Solutions (MSI): Mizuho initiated coverage with a Neutral rating and placed a target price of $63.00 on the company. Pre-market: 21.05 -0.16 (-0.75%)

Nokia (NOK): Mizuho initiated coverage with a Neutral rating and placed a target price of $8.00 on the company. Pre-market: 7.94 +0.02 (0.25%)

Twitter (TWTR): Macquarie initiated coverage with a Neutral rating. Pre-market: 52.90 +0.91 (1.75%)

Earning Reports:

Costco (COST): Reported EPS of $0.96 missing estimates by -$0.06. Pre-market: 118.50 -1.54 (-1.28%)

H&R Block (HRB): Reported EPS of -0.42 missing estimates by -$0.05. Pre-market: 28.55 -0.25 (-0.87%)

Joy Global (JOY): Reported EPS of $1.11 missing estimates by -$0.01. Pre-market: 53.30 -2.94 (-5.23%)

Smith & Wesson (SWHC): Reported EPS of 0.28 beating estimates by +$0.07. Pre-market: 12.76 +0.64 (5.28%)

Markets: 
Futures at 8:10: Dow +0.08%. S&P -0.28%. Nasdaq +0.01%. Crude -0.15% at $98.38. Gold -0.52% to $1254.60. U.S. 10 Year -3/32 to 2.819%.

Europe: London +0.37%. Paris +0.76%. Frankfurt +0.29%. 

Asia: Japan -0.62% to 15515. Hong Kong -1.71% to 23338. China -1.49% at 2204. India -0.39% at 21171. 

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Morning Coffee Pre-Market Wall Street News

Apple Beat EPS Estimates. Apple (AAPL) reported FQ3 earnings that beat Wall Street expectations. EPS was report at $7.47, but net profit dropped to $6.9B from $8.8B, while revenue increased 1% to $35.3B. The company said that iPhone sales came in at 31.2M, up 20% from a year earlier. Gross margins fell along with sales in Europe and China.  iPad sales came in at 14.6M disappointing analysts. Some on Wall Street are pointing to the falling margins being a direct result of competition from Google’s (GOOG) Android based devices. Pre-market: 439.24 +20.25 (4.83%)

Upgrades:

Apple (AAPL): BMO Capital raised their rating from Market Perform to Outperform and maintained their target price of $480.00.

D.R. Horton (DHI): Compass Point raised their rating from Neutral to Buy.

Forest Labs (FRX): Susquehanna raised their rating from Negative to Neutral and raised their target price from $30.00 to $40.00.

VMware (VMW): Nomura raised their rating from Neutral to Buy.

VMware (VMW): Raymond James raised their rating from Market Perform to Outperform.

Wendy’s (WEN): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $5.00 to $7.50.

Downgrades:

Arch Coal (ACI): Tudor Pickering lowered their rating from Buy to Accumulate.

Broadcom (BRCM): B. Riley lowered their rating from Buy to Neutral.

Broadcom (BRCM): BMO Capital lowered their rating from Outperform to Market Perform.

Broadcom (BRCM): Credit Suisse lowered their rating from Outperform to Neutral and lowered their target price from $45.00 to $32.00.

Broadcom (BRCM): RBC Capital lowered their rating from Outperform to Sector Perform.

Broadcom (BRCM): Mizuho lowered their rating from Buy to Neutral.

Broadcom (BRCM): William Blair lowered their rating from Outperform to Market Perform.

Broadcom (BRCM): Citigroup lowered their rating from Buy to Neutral.

DISH Network (DISH): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $50.00 to $42.00.

Norfolk Southern (NSC): Bank of America Merrill Lynch lowered their rating from Neutral to Underperform and lowered their target price from $81.00 to $74.00.

Starwood Hotels (HOT): UBS lowered their rating from Buy to Neutral and maintained their target price of $71.00.

Coverage Initiated:

Costco (COST): Williams Capital initiated coverage with a Buy rating.

Earning Reports:

Apple (AAPL): Reported EPS of $7.47 beating estimates by +$0.19. Pre-market: 439.24 +20.25 (4.83%)

AT&T (T): Reported EPS of $0.67 missing estimates by -0.01. Pre-market: 35.35 -0.46 (-1.28%)

Boeing (BA): Reported EPS of $1.67 beating estimates by +$0.11. Pre-market: 109.15 +1.36 (1.26%)

Broadcom (BRCM): Reported EPS of $0.70 beating estimates by +$0.01.

Caterpillar (CAT): Reported EPS of $1.45 missing estimates by -0.25. Pre-market: 84.42 -1.10 (-1.29%)

Ford Motor (F): Reported EPS of $0.45 beating estimates by +$0.08.

General Dynamics (GD): Reported EPS of $1.81 beating estimates by +$0.19.

GlaxoSmithKline (GSK): Reported EPS of $0.26 in-line with estimates.

Intl Gaming Tech (IGT): Reported EPS of $0.33 beating estimates by +$0.02. Pre-market: 17.97 -0.33 (-1.80%)

Northrop Grumman (NOC): Reported EPS of $2.05 beating estimates by +$0.34.

Omnicare (OCR): Reported EPS of $0.90 beating estimates by +$0.03.

PepsiCo (PEP): Reported EPS of $1.31 beating estimates by +$0.12.

VMware (VMW): Reported EPS of $0.79 beating estimates by +$0.02. Pre-market: 80.69 +9.41 (13.20%)

Markets: 
Futures at 8:38: Dow +0.23%. S&P +0.28%. Nasdaq +1.01%. Crude -0.39% to $106.81. Gold +0.05% to $1334.90. 10 Year -21/32 2.590%

Europe: London -0.39%. Paris -0.43%. Frankfurt -0.20%. 

Asia: Japan -0.76% to 14731. Hong Kong +0.28% to 21969. China -1.27% to 2018. India -0.48% to 20,205.