Obama to Unveil New $1.4 Trillion Budget

Obama to Unveil New $1.4 Trillion Budget. President Obama is scheduled to unveil his new $1.4T budget today that most economists say has little chance of passing Congress. The budget includes expanding the Earned Income Tax Credit to 13.5M childless workers. The 10-year $60B cost would be met by eliminating tax write-offs for self-employed professionals and investment-fund managers. The budget also includes spending $302B on highways, bridges and transit projects, and an increase in the minimum wage.

Upgrades:

Magna International (MGA): JPMorgan raised their rating from Underweight to Neutral. Pre-market: 95.09 +1.44 (1.54%)

Magna International (MGA): Goldman Sachs raised their rating from Sell to Neutral. Pre-market: 95.09 +1.44 (1.54%)

Pulte Homes (PHM): KeyBanc raised their rating from Hold to Buy and placed a target price of $26.00 on the company. Pre-market: 21.26 +0.45 (2.16%)

Downgrades:

Intuitive Surgical (ISRG): Cantor lowered their rating from Buy to Hold and maintained their target price of $450.00. Pre-market: 452.01 -1.83 (-0.40%)

Lennar (LEN): KeyBanc lowered their rating from Buy to Hold. Pre-market: 43.84 0.00 (0.00%)

McDermott (MDR): Capital One lowered their rating from Equal Weight to Underweight. Pre-market: 7.50 -0.61 (-7.52%)

Royal Caribbean (RCL): Longbow lowered their rating from Buy to Neutral. Pre-market: 51.70 +0.48 (0.94%)

Time Warner Cable (TWC): Macquarie lowered their rating from Outperform to Neutral.

USG Corp (USG): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 34.75 -0.03 (-0.09%)

WebMD (WBMD): Stifel lowered their rating from Buy to Hold. Pre-market: 41.80 -1.53 (-3.53%)

Coverage Initiated:

Advance Auto Parts (AAP): Stephens initiated coverage with an Equal Weight rating and target price of $133.00.

DeamWorks Animation SKG (DWA): Topeka initiated coverage with a Hold rating and target price of $32.00. Pre-market: 28.81 +0.31 (1.09%)

Earning Reports:

AutoZone (AZO): Reported EPS of $5.63 beating estimates by +$0.09. Pre-market: 550.00 +8.77 (1.62%)

McDermott (MDR): Reported EPS of -$1.37 missing estimates by -$1.30. Pre-market: 7.50 -0.61 (-7.52%)

Molycorp (MCP): Reported EPS of -$0.28 beating estimates by +$0.01. Pre-market: 5.21 -0.04 (-0.76%)

RadioShack (RSH): Reported EPS of -$1.29 missing estimates by -$1.16. Pre-market: 2.07 -0.65 (-23.90%)

Markets: 
Futures at 8:28: Dow +1.02%. S&P +1.00%. Nasdaq +1.05%. Crude -1.20% to $103.65. Gold -1.18% to $1334.30. U.S. 10 Year -12/32 to 2.645%.

Europe: London +1.39%. Paris +2.11%. Frankfurt +2.04%. 

Asia: Japan +0.47% to 14721. Hong Kong +0.70% to 22658. China -0.18% to 2071. India +1.26% to 21210. 

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Morning Coffee Pre-Market Wall Street News

World Markets Rise On Debt Ceiling and Funding Hopes. World stock markets were mostly higher on hopes that Washington will come to an agreement to lift the debt ceiling. Although reports say any deal would be a short term deal. Additionally, there are reports that the debt ceiling deal could also include funding that would end the current government shutdown.

Upgrades:

Chipotle Mexican Grill (CMG): Janney Capital raised their rating from Neutral to Buy and placed a target price of $525.00 on the company. Pre-market: 440.00 +4.13 (0.95%)

JB Hunt (JBHT): BofA Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $81.00 on the company. Pre-market: 72.14 0.00 (0.00%)

Johnson & Johnson (JNJ): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $87.00 to $95.00.

KB Homes (KBH): Susquehanna raised their rating from Neutral to Positive and raised their target price from $20.00 to $22.00. Pre-market: 17.09 +0.46 (2.77%)

Lennar (LEN): Susquehanna raised their rating from Neutral to Positive and raised their target price from $34.00 to $41.00. Pre-market: 34.05 +0.25 (0.74%)

Safeway (SWY): JPMorgan lowered their rating from Overweight to Neutral.

Downgrades:

Corning (GLW): Piper Jaffray lowered their rating from Overweight to Neutral and lowered their target price from $19.00 to $14.00.

Deutsche Bank (DB): Macquarie lowered their rating from Neutral to Underperform. Pre-market: 48.10 +0.25 (0.52%)

Eli Lilly (LLY): Jefferies lowered their rating from Hold to Underperform and lowered their target price from $49.00 to $40.00.

Intel (INTC): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $22.00 on the company.

Merck (MRK): Jefferies lowered their rating from Buy to Hold and lowered their target price from $53.00 to $50.00.

NVIDIA (NVDA): Macquarie lowered their rating from Neutral to Underperform. Pre-market: 15.15 -0.24 (-1.53%)

Synaptics (SYNA): JPMorgan lowered their rating from Overweight to Neutral.

Coverage Initiated:

Blackstone Group (BX): Evercore initiated coverage with an Equal Weight rating and target price of $28.00.

Carlyle Group (CG): Evercore initiated coverage with an Overweight rating and target price of $36.00.

Dr. Pepper Snapple (DPS): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $51.00-$53.00 to $44.00-46.00.

KKR & Co. (KKR): Evercore initiated coverage with an Equal Weight rating and target price of $23.00.

Earning Reports:

Infosys (INFY): Reported EPS of $45.96 missing estimates by -$0.24. Pre-market: 53.20 +2.92 (5.81%)

JPMorgan Chase (JPM): Reported EPS of $1.42 beating estimates by +$0.23. Pre-market: 53.00 +0.48 (0.91%)

Micron Technology (MU): Reported EPS of $0.20 missing estimates by -$0.10. Pre-market: 18.05 -0.38 (-2.06%)

Safeway (SWY): Reported EPS of $0.10 missing estimates by -$0.6. Pre-market: 33.69 +2.12 (6.72%)

Wells Fargo (WFC): Reported EPS of $0.99 beating estimates by +$0.03. Pre-market: 40.78 -0.66 (-1.59%)

Markets: 
Futures at 6:20: Dow +0.07%. S&P -0.05%. Nasdaq +0.06%. Crude -1.2% to $101.95. Gold -2.19% to $1277.10. U.S. 10 Year +7/32 2.657%

Europe: London +0.65%. Paris -0.12%. Frankfurt +0.22%. 

Asia: Japan +1.48% to 14405. Hong Kong +1.16% to 23218. China +1.70% to 2228. India +1.26% to 20529. 

Morning Coffee Pre-Market Wall Street News

BlackBerry to be Acquired. Troubled cell phone maker BlackBerry (BBRY) has agreed to be acquired for $4.7 billion. A consortium led by Fairfax Financial will pay $9.00 share in cash and roll over its existing 9.9% stake into its buyout offer.  Fairfax Financial will rely on other investors to finance the rest of the deal via equity and debt. BlackBerry can look at competing bids up until the due diligence is completed. Pre-market: 8.79 -0.03 (-0.34%)

Upgrades:

Apple (AAPL): Susquehanna raised their rating from Neutral to Positive and raised their target price from $440.00 to $625.00. Pre-market: 495.60 +4.96 (1.01%)

BlackBerry (BBRY): Cowen raised their rating from Underperform to Market Perform and raised their target price from $8.00 to $9.00. Pre-market: 8.79 -0.03 (-0.34%)

BlackBerry (BBRY): Canaccord raised their rating from Sell to Hold and placed a target price of $9.00 on the company. Pre-market: 8.79 -0.03 (-0.34%)

Microchip Tech (MCHP): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $42.00 to $46.00. Pre-market: 40.84 +0.51 (1.26%)

Downgrades:

Automatic Data Processing (ADP): RBC Capital lowered their rating from Outperform to Sector Perform.

DirecTV (DTV): Moffett Research lowered their rating from Buy to Neutral.

Equifax (EFX): RBC Capital lowered their rating from Outperform to Sector Perform.

Red Hat (RHT): Pacific Crest lowered their rating from Outperform to Sector Perform. Pre-market: 47.55 -5.38 (-10.16%)

Coverage Initiated:

Automatic Data Processing (ADP): UBS initiated coverage with a Neutral rating and target price of $110.00.

Sturm Ruger & Company (RGR): Dougherty initiated coverage with a Neutral rating.

Tata Motors (TTM): Bernstein initiated coverage with an Outperform rating.

Earning Reports:

CarMax (KMX): Reported EPS of $0.62 beating estimates by +$0.07. Pre-market: 52.22 +2.21 (4.42%)

KB Home (KBH): Reported EPS of $0.28 beating estimates by +$0.07. Pre-market: 16.86 -0.17 (-1.00%)

Lennar (LEN): Reported EPS of $0.54 beating estimates by +$0.08. Pre-market: 35.10 +0.56 (1.62%)

Red Hat (RHT): Reported EPS of $0.35 beating estimates by +$0.02. Pre-market: 47.55 -5.38 (-10.16%)

Markets: 
Futures at 8:14: Dow +0.02%. S&P -0.02%. Nasdaq +0.09%. Crude -0.60% to $102.96. Gold -0.93% to $1315.00. U.S. 10 Year +5/32 2.688%

Europe: London +0.27%. Paris +0.69%. Frankfurt +0.25%. 

Asia: Japan -0.07% to 14732. Hong Kong -0.82% to 23179. China -0.61% to 2207. India +0.10% to 19911.