Cisco Shares Lower on Quarterly Results

Cisco Shares Lower on Quarterly Results. Cisco Systems (CSCO) reported their FQ2 earnings with mixed results.  The company reported EPS of $0.47 beating Wall Street estimates by +$0.01. But net profit at the company declined 55% to $1.4B after the company took a $655M charge due to memory-chip problems. Adjusted revenue fell 7.4% to $11.2B. The company also forecast that sales would decline another 6-8% in FQ3. Pre-market: 22.06 -0.79 (-3.46%)

Upgrades:

Children’s Place (PLCE): Piper Jaffray raised their rating from Neutral to Overweight and raised their target price from $54.00 to $62.00.

Forward Air (FWRD): Stephens raised their rating from Equal Weight to Overweight and raised their target price from $40.00 to $55.00.

NVIDIA (NVDA): B. Riley raised their rating from Neutral to Buy and raised their target price from $14.00 to $21.00. Pre-market: 17.45 +0.62 (3.68%)

Downgrades:

Angie’s List (ANGI): Stifel lowered their rating from Buy to Hold. Pre-market: 13.72 -3.38 (-19.77%)

Angie’s List (ANGI): Raymond James lowered their rating from Strong Buy to Market Perform. Pre-market: 13.72 -3.38 (-19.77%)

Coverage Initiated:

Constellation Brands (STZ): Citigroup initiated coverage with a Neutral rating and target price of $80.00.

Equifax (EFX): Wells Fargo initiated coverage with a Market Perform rating and target range of $69.00 - $76.00.

Moody’s (MCO): Wells Fargo initiated coverage with a Market Perform rating and target range of $78.00 - $87.00.

Sempra Energy (SRE): Wells Fargo initiated coverage with a Outperform rating and target range of $99.00 - $102.00.

Earning Reports:

Burger King (BKW): Reported EPS of $0.24 beating estimates by +$0.01. Pre-market: 25.51 +0.03 (0.12%)

Cabela’s (CAB): Reported EPS of $1.32 missing estimates by -$0.09. Pre-market: 63.57 -6.24 (-8.94%)

Cisco Systems (CSCO): Reported EPS of $0.47 beating estimates by +$0.01. Pre-market: 22.06 -0.79 (-3.46%)

Goodyear Tire (GT): Reported EPS of $0.74 beating estimates by +$0.11. Pre-market: 25.00 +0.83 (3.43%)

Molson Coors Brewing (TAP): Reported EPS of $0.68 missing estimates by -$0.04.

PepsiCo (PEP): Reported EPS of $1.05 beating estimates by +$0.04. Pre-market: 81.00 -0.49 (-0.60%)

Sonoco Products (SON): Reported EPS of $0.58 in-line with estimates.

TreeHouse Foods (THS): Reported EPS of $0.98 beating estimates by +$0.07.

Zilliow (Z): Reported EPS of $0.19 beating estimates by +$0.12. Pre-market: 90.45 +0.60 (0.67%)

Markets: 
Futures at 7:43: Dow -0.46%. S&P -0.52%. Nasdaq -0.54%. Crude -0.66% to $99.71. Gold -0.35% to $1290.70.  U.S. 10 Year +15/32 to 2.739%.

Europe: London -0.92%. Paris -0.59%. Frankfurt -0.54%. 

Asia: Japan -1.79% to 14535. Hong Kong -0.54% to 22166. China -0.55% at 2098. India -1.25% at 20193. 

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Morning Coffee Pre-Market Wall Street News

Fitch Warns of Possible U.S. Credit Rating Downgrade. Fitch announced that they have placed the United States AAA debt rating on rating “watch negative." The company could lower their rating even if the debt ceiling is raised, stating that "Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default." Standard & Poor's downgraded the rating to AA-plus with a stable outlook back in 2011. Moody's Investors Service rates U.S. government debt at Aaa with a stable outlook.

Upgrades:

Alaska Air Group (ALK): Imperial Capital raised their rating from In-Line to Outperform.

Intel (INTC): B. Riley raised their rating from Neutral to Buy.

Downgrades:

Brown & Brown (BRO): Stephens lowered their rating from Overweight to Equal Weight and lowered their target price from $38.00 to $35.00.

Cisco Systems (CSCO): MKM Partners lowered their rating from Buy to Neutral and lowered their target price from $28.00 to $26.00.

Diamond Offshore (DO): BMO Capital lowered their rating from Market Perform to Underperform and lowered their target price from $70.00 to $64.00.

ENCSO (ESV): BMO Capital lowered their rating from Market Perform to Underperform and lowered their target price from $65.00 to $61.00.

FedEx (FDX): Buckingham lowered their rating from Buy to Neutral and lowered their target price from $122.00 to $120.00.

INVESCO (IVZ): JPMorgan lowered their rating from Overweight to Neutral.

INVESCO (IVZ): JPMorgan lowered their rating from Buy to Neutral and placed a target price of $33.00 on the company.

Noble Energy (NE): BMO Capital lowered their rating from Market Perform to Underperform and lowered their target price from $47.00 to $70.00.

Stanley Black & Decker (SWK): RW Baird lowered their rating from Outperform to Neutral.

Transocean (RIG): BMO Capital lowered their rating from Market Perform to Underperform and lowered their target price from $54.00 to $43.00.

Coverage Initiated:

Allegheny Technology (ATI): Sterne Agee initiated coverage with an Underperform rating and target price of $27.00.

Smith & Wesson (SWHC): Lake Street Agee initiated coverage with Hold rating and target price of $12.00.

United States Steel (X): Credit Suisse initiated coverage with Neutral rating and target price of $19.00.

Earning Reports:

Abbott Labs (ABT): Reported EPS of $0.55 beating estimates by +$0.03.

Bank of America (BAC): Reported EPS of $0.20 beating estimates by +$0.01.

BlackRock (BLK): Reported EPS of $3.88 missing estimates by -$0.01.

BNY Mellon (BK): Reported EPS of $0.60 beating estimates by +$0.02.

Intel (INTC): Reported EPS of $0.58 beating estimates by +$0.05.

Mattel (MAT): Reported EPS of $1.16 beating estimates by +$0.04.

Northern Trust (NTRS): Reported EPS of $0.76 missing estimates by -$0.01.

PepsiCo (PEP): Reported EPS of $1.24 beating estimates by +$0.07.

PNC (PNC): Reported EPS of $1.69 beating estimates by +$0.07.

St Jude Medical (STJ): Reported EPS of $0.90 beating estimates by +$0.01.

Yahoo! (YHOO): Reported EPS of $0.34 beating estimates by +$0.01.

Markets: 
Futures at 6:20: Dow +0.4%. S&P +0.4%. Nasdaq +0.1%. Crude 0.0% at $101.18. Gold +0.4% to $1278.50. U.S. 10 Year -1/32 to 2.72%

Europe: London -0.6%. Paris -0.9%. Frankfurt -0.1%. 

Asia: Japan +0.2% to 14467. Hong Kong -0.5% to 23228. China -1.8% to 2193. India closed. 

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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. 

Morning Coffee Pre-Market Wall Street News

Wall Street Awaits Fed Decision. The FOMC will be wrapping up their two day policy meeting today and Wall Street will be watching closely. Economists are now more confident now that the Fed won't signal the end of its QE program, but their policy statement will be analyzed closely for any hints that the Fed may end their QE program in the future or begin to raise interest rates.

Upgrades:

Adobe Systems (ADBE): BofA Merrill Lynch raised their rating from Neutral to Buy and raised their target price from $47.00 to $57.00. Pre-market: 46.57 +3.21 (7.40%)

Ball Corp (BLL): RW Baird raised their rating from Neutral to Outperform and raised their target price from $48.00 to $50.00.

Toll Brothers (TOLL): Argus raised their rating from Hold to Buy and placed a target price of $42.00 on the company. Pre-market: 34.49 +0.45 (1.32%)

Downgrades:

American Eagle (AEO): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $23.00 to $21.00. Pre-market: 18.75 -0.41 (-2.14%)

Brown & Brown (BRO): William Blair lowered their rating from Outperform to Market Perform.

News Corp (NWSA): BTIG lowered their rating from Outperform to Neutral. Pre-market: 31.75 +0.19 (0.60%)

Research in Motion (BBRY): Bernstein lowered their rating from Market Perform to Underperform and lowered their target price from $15.00 to $10.00. Pre-market: 14.51 -0.33 (-2.22%)

Sprint Nextel (S): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $8.00 on the company. Pre-market: 7.11 -0.21 (-2.87%)

Coverage Initiated:

Coca-Cola (KO): Credit Suisse initiated coverage with a Outperform rating and target price of $48.00. Pre-market: 41.05 +0.12 (0.29%)

Dr Pepper Snapple (DPS): Credit Suisse initiated coverage with a Neutral rating and target price of $50.00.

PepsiCo (PEP): Credit Suisse initiated coverage with a Neutral rating and target price of $87.00.

Teva Pharm (TEVA): Maxim initiated coverage with a Buy rating and target price of $56.00.

Earning Reports:

Actuant (ATU): Reported EPS of $0.62 beating estimates by $0.04. Pre-market: 33.70 +0.62 (1.87%)

Adobe Systems (ADBE): Reported EPS of $0.36 beating estimates by $0.02. Pre-market: 46.40 +3.04 (7.01%)

FedEx (FDX): Reported EPS of $2.13 beating estimates by $0.18. Pre-market: 98.99 -0.49 (-0.49%)

La-Z-Boy (LZB): Reported EPS of $0.30 beating estimates by $0.02. After Hours: 19.91 -0.37 (-1.82%)

Markets: 
Futures at 7:31: Dow +0.10%. S&P -0.05%. Nasdaq +0.13%. Crude +0.17% to $98.62. Gold +0.31 at $1371.20.

Europe: London -0.53%. Paris -0.71%. Frankfurt -0.29%. 

Asia: Japan +1.83% to 13245. Hong Kong -1.13% to 20987. China-0.73% to 2143. India +0.12% to 19246.