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

Japan Market Sells Off Again. For the second time in two weeks the Japanese market sold off.  In late trading the Nikkei (EWJ) fell -5.15%, bring the two week decline to over -14%. Traders point to fears that the Fed will end its QE program as well as the falling dollar-yen (FXY) as the cause of the volatility. (FXY) Pre-market: 96.79 +0.01 (0.01%)

Upgrades

Diamond Offshore (DO): JPMorgan raised their rating from Neutral to Overweight and placed a target price of $82.00 on the company.

Noble Corp (NE): Raymond James raised their rating from Market Perform to Outperform and placed a target price of $52.00 on the company.

Northrop Grumman (NOC): Goldman Sachs raised their rating from Neutral to Buy.

Republic Services (RSG): Wedbush raised their rating from Neutral to Outperform and raised their target price from $33.00 to $40.00.

SunPower (SPWR): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $13.00 to $18.00. Pre-market: 20.33 +0.69 (3.51%)

First Solar (FSLR): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $64.00 on the company.

Downgrades

Noble Corp (NE): JPMorgan lowered their rating from Overweight to Neutral and placed a target price of $43.00 on the company.

Stanley Black & Decker (SWK): Argus lowered their rating from Buy to Hold and placed a target price of $78.00 on the company.

Coverage Initiated

AT&T (T): BMO Capital initiated coverage with a Market Perform rating and placed a target price of $34.00 on the company.

Leap Wireless (LEAP): BMO Capital initiated coverage with an Underperform rating and placed a target price of $3.00 on the company.

Pfizer (PFE): Sun Trust initiated coverage with a Reduce rating.

Sprint Nextel (S): BMO Capital initiated coverage with an Outperform rating and placed a target price of $9.00 on the company.

Verizon Communications (VZ): BMO Capital initiated coverage with an Outperform rating and placed a target price of $55.00 on the company.

Coverage Reiterated/Price Target Changed

SEI Investments (SEIC): Stifel reiterated their Buy rating and raised their target price from $31.00 to $33.00.

Earning Reports

Big Lots (BIG): Reported EPS of $0.61 in-line with estimates. Pre-market: 34.90 -3.48 (-9.07%)

Costco (COST): Reported EPS of $1.04 beating estimates by +$0.01. Pre-market: 113.92 +0.97 (0.86%)

Joy Global (JOY): Reported EPS of $1.73 beating estimates by +$0.16. Pre-market: 54.82 -0.26 (-0.47%)

Tilly's (TLYS): Reported EPS of $0.08 beating estimates by +$0.01.

Markets: 
Futures at 8:31: Dow +0.24%. S&P +0.19%. Nasdaq +0.06%. Crude -0.58% to $92.60. Gold +1.02% to $1405.50.

Europe: London +0.17%. Paris +0.72%. Frankfurt +0.54%. 

Asia: Japan -5.15% to 13589. Hong Kong -0.31% to 22484. China -0.27% to 2318. India +0.34% to 20215.