Morning Coffee Pre-Market Wall Street News

Valeant to Purchase Bausch & Lomb. Bausch & Lomb which is currently owned by Warburg Pincus LLC will be purchased by Valeant (VRX) for $8.7B in cash, including $4.2B in debt. The Bausch & Lomb deal is the largest of 15 acquisitions for the Montreal-based company. In 2012 Bausch & Lomb generated $3 billion in sales from its contact lenses, eye-care solutions and prescription medicines.

Upgrades

Bayer AG (BAYRY): Jefferies raised their rating from Hold to Buy.

Eli Lilly (ELI): Jefferies raised their rating from Underperform to Hold and raised their target price from $44.00 to $49.00.

Expeditors International (EXPD): BB&T raised their rating from Hold to Buy and placed a target price of $50.00 on the company.

GlaxoSmithKline (GSK): Deutsche Bank raised their rating from Hold to Buy.

Merck & CO (MRK): Jefferies raised their rating from Hold to Buy and raised their target price from $48.00 to $54.00.

Novo Nordisk (NVO): Deutsche Bank raised their rating from Sell to Hold.

Texas Instruments (TXN): Drexel Hamilton raised their rating from Hold to Buy and raised their target price from $32.00 to $40.00.

Downgrades

Broadcom (BRCM): Susquehanna lowered their rating from Positive to Neutral and placed a target price of $39.00.

Lloyds Banking Group (LYG): Citigroup lowered their rating from Buy to Neutral.

Royal Bank of Scotland (RBS): Citigroup lowered their rating from Hold to Sell.

St. Jude Medical (STJ): Canaccord Genuity lowered their rating from Hold to Sell.

Coverage Initiated

Jabil Circuit (JBL): Standpoint Research initiated coverage with a Buy rating and target price of $28.00.

Earning Reports

Tiffany & Co (TIF): Reported EPS of $0.70 beating estimates by +$0.18.

Markets: 
Futures at 9:09: Dow +0.78%. S&P +0.81%. Nasdaq +0.93%. Crude +1.09% to $94.15. Gold -0.41% to $1381.10.

Europe: London +1.80%. Paris +1.46%. Frankfurt +1.22%. 

Asia: Japan +1.20% to 14312. Hong Kong +1.05% to 22924. China +1.23% to 2321. India +0.65% to 20161. 

Morning Coffee Pre-Market Wall Street News

Durable Goods Beats Forecast. Orders for U.S. durable goods increase more than economists had estimated in April. Bookings for equipment, meant to last more than three years rose 3.3%, while economists had expected an increase of only 1.6%.  This come on the heels of March’s revised -5.9% decline. Bookings for commercial aircraft climbed 18.1% last month after slumping 43% in March. Excluding transportation equipment, durable orders climbed 1.3%, which is the first gain in three months. Bookings for non-defense capital goods excluding aircraft increased 1.2% after a 0.9% in March.

Upgrades

Pandora Media (P): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $16.00 to $24.00. Pre-market: 19.07 +1.91 (11.13%)

Procter & Gamble (PG): UBS raised their rating from Neutral to Buy and raised their target price from $75.00 to $95.00. Pre-market: 81.65 +2.95 (3.75%)

Sherwin-Williams (SHW): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $180.00 to $205.00.

Wendy’s (WEN): Janney Capital raised their rating from Neutral to Buy. Pre-arket: 6.20 +0.20 (3.33%)

Downgrades

Cirrus Logic (CRUS): Canaccord lowered their rating from Buy to Hold and lowered their target price from $25.00 to $18.00. Pre-market: 17.86 +0.10 (0.56%)

rue21 (RUE): Janney Capital lowered their rating from Buy to Neutral and placed a target price of $42.00 on the company.

Saks (SKS): Argus lowered their rating from Buy to Hold.

Salesforce.com (CRM): Wedbush lowered their rating from Outperform to Neutral and lowered their target price from $51.00 to $42.00. Pre-market: 43.02 -2.67 (-5.84%)

Earning Reports

Abercrombie & Fitch (ANF): Reported EPS of -$0.09 missing estimates by -$0.04. Pre-market: 49.85 -4.52 (-8.31%)

Aeropostale (ARO): Reported EPS of -$0.16 beating estimates by +$0.01. Pre-market: 15.50 -0.98 (-5.95%)

Foot Locker (FL): Reported EPS of $0.91 beating estimates by +$0.03. Pre-market: 34.85 -0.83 (-2.33%)

Gap (GPS): Reported EPS of $0.71 beating estimates by +$0.02. Pre-market: 40.50 -0.86 (-2.08%)

Pandora Media (P): Reported EPS of -$0.10 in-line with estimates. Pre-market: 19.07 +1.91 (11.13%)

Ross Stores (ROST): Reported EPS of $1.07 in-line with estimates.

Salesforce.com (CRM): Reported EPS of $0.10 in-line with estimates. Pre-market: 43.02 -2.67 (-5.84%)

Sears Holdings (SHLD): Reported EPS of -$1.29 missing estimates by -$0.69. Pre-market: 48.95 -9.22 (-15.85%)

Williams-Sonoma (WSM): Reported EPS of $0.41 beating estimates by +$0.05.

Zumiez (ZUMZ): Reported EPS of $0.13 beating estimates by +$0.01.

Markets: 
Futures at 8:25: Dow -0.28%. S&P -0.40%. Nasdaq -0.46%. Crude -0.67% to $93.60. Gold +0.01% to $1392.10.

Europe: London -0.40%. Paris +0.34%. Frankfurt -0.23%. 

Asia: Japan +0.89% to 14612. Hong Kong -0.23% to 22619. China +0.57% to 2289. India +0.15% to 19704. 

Morning Coffee Pre-Market Wall Street News

S&P 500 Forecasts raised by Goldman. Goldman Sachs announced that they have raised their forecast S&P 500.  The firm now expects the index to rise 5% by year-end to 1,750. Analysts expectations for 2014 is now an increase of 9% to 1,900 and for 2015 a return of 10% to 2,100. The reason for the increase is expectations of an improving GDP with P/E’s increasing to 16x. Additionally, the firm said dividends should rise 30% over the next two years. Pre-market: 167.03 +0.06 (0.04%)

Upgrades

Blackrock (BLK): Macquarie raised their rating from Neutral to Outperform and raised their target price from $253.00 to $315.00.

Con-way (CNW): Wunderlich raised their rating from Hold to Buy and raised their target price from $37.00 to $45.00.

Downgrades

Breazer Homes (BZH): Sterne Agee lowered their rating from Buy to Neutral. Pre-market: 22.50 -0.23 (-1.01%)

Carnival Corp (CCL): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target price range from $39.00 - $41.00 to $34.00 - $36.00. Pre-market: 32.55 -2.77 (-7.84%)

Carnival Corp (CCL): William Blair lowered their rating from Outperform to Market Perform. Pre-market: 32.55 -2.77 (-7.84%)

Carnival Corp (CCL): UBS lowered their rating from Buy to Neutral and lowered their target price from $38.00 to $36.00. Pre-market: 32.55 -2.77 (-7.84%)

Coverage Initiated

Aetna (AET): Goldman Sachs initiated coverage with a Buy rating and target price of $68.00.

Sony Corp (SNE): Jefferies initiated coverage with a Buy rating.

Earning Reports

AutoZone (AZO): Reported EPS of $0.32 beating estimates by +$0.06.

Best Buy (BBY): Reported EPS of $0.32 beating estimates by +$0.06. Pre-market: 26.53 -0.28 (-1.04%)

Dick’s Sporting Goods (DKS): Reported EPS of $0.48 in-line with estimates. Pre-market: 52.00 -0.21 (-0.40%)

Home Depot (HD): Reported EPS of $0.83 beating estimates by +$0.07. Pre-market: 79.50 +2.74 (3.57%)

Medtronic (MDT): Reported EPS of $1.10 beating estimates by +$0.08. Pre-market: 52.00 +2.11 (4.23%)

Urban Outfitters (URBN): Reported EPS of $7.27 beating estimates by +$0.03. Pre-market: 43.35 -1.14 (-2.56%)

Markets: 
Futures at 7:00: Dow +0.02%. S&P -0.09%. Nasdaq -0.05%. Crude -0.27% to $96.45. Gold -0.32% to $1380.00.

Europe: London +0.17%. Paris -0.36%. Frankfurt -0.32%. 

Asia: Japan +0.13% to 15381. Hong Kong -0.54% to 23366. China +0.22% to 2305. India -0.56% to 20111.