Morning Coffee Pre-Market Wall Street News

Ford Post Strong Q3 Profits. Ford Motor reports very strong Q3 profits, driven by strength in North America and smaller losses in Europe. The auto maker reported pre-tax earnings of $2.6 billion or EPS of $0.45, easily beating Wall Street estimates of only $0.37. Bob Shanks, Ford's chief financial officer said "North America continues to achieve strong profits and we saw significantly improved results outside North America."  He went on to say "We substantially reduced our losses in Europe, set a record third quarter profit in Asia Pacific Africa and saw a $150 million improvement in South America."

 The company also raised full-year guidance. It expects its full-year pre-tax profit to beat 2012 and expects its automotive operating margins to be higher than last year.

Ford also said it contributed $1.1 billion during Q3 to fund its pension plans worldwide. $700 million was contributed to its U.S. plans. Pre-market: 18.11 +0.59 (3.37%)

Upgrades:

Canadian Pacific Railway (CP): Desjardins raised their rating from Hold to Buy. Pre-market: 142.82 -0.17 (-0.12%)

Canadian Pacific Railway (CP): RBC Capital raised their rating from Underperform to Sector Perform. Pre-market: 142.82 -0.17 (-0.12%)

Eli Lilly (LLY): MKM Partners raised their rating from Neutral to Buy and placed a target price of $59.00 on the company.

Goldman Sachs (GS): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $163.00 to $181.00.

Downgrades:

Caterpillar (CAT): Raymond James lowered their rating from Outperform to Market Perform.

Caterpillar (CAT): JPMorgan lowered their rating from Overweight to Neutral and lowered its target price from $105.00 to $90.00.

Coach (COH): Atlantic Equities lowered their rating from Overweight to Neutral. Pre-market: 48.51 -0.04 (-0.08%)

Green Mountain Coffee Roasters (GMCR): Argus lowered their rating from Buy to Hold.

O”Reilly Automotive (ORLY): Raymond James lowered their rating from Strong Buy to Market Perform.

U.S. Bancorp (USB): Deutsche Bank raised their rating from Buy to Hold and raised their target price from $41.00 to $38.00.

Coverage Initiated:

21^st Century Fox (FOXA): Guggenheim initiated coverage with a Buy rating and target price of $41.00. Pre-market: 34.77 0.00 (0.00%)

CBS Corp (CBS): Guggenheim initiated coverage with a Buy rating and target price of $69.00.

CVS Caremark (CVS): FBR Capital initiated coverage with an Outperform rating and target price of $69.00.

Express Scripts (ESRX): FBR Capital initiated coverage with an Outperform rating and target price of $75.00.

News Corp (NWSA): Guggenheim initiated coverage with a Neutral rating and target price of $19.00.

Time Warner (TWX): Guggenheim initiated coverage with a Buy rating and target price of $80.00.

Viacom B (VIAB): Guggenheim initiated coverage with a Neutral rating and target price of $94.00.

Walgreen (WAG): FBR Capital initiated coverage with a Market Perform rating and target price of $62.00.

Walt Disney (DIS): Guggenheim initiated coverage with a Neutral rating and target price of $78.00.

Earning Reports:

3M (MMM): Reported EPS of $1.78 beating estimates by +$0.03. Pre-market: 123.50 +0.30 (0.24%)

Ball Corp (BLL): Reported EPS of $1.78 beating estimates by +$0.03.

Cabela’s (CAB): Reported EPS of $0.70 missing estimates by -$0.01. Pre-market: 59.82 -2.57 (-4.12%)

Celgene (CELG): Reported EPS of $1.56 beating estimates by +$0.03. Pre-market: 158.50 -1.50 (-0.94%)

Colgate-Palmolive (CL): Reported EPS of $0.73 in-line with estimates. Pre-market: 63.00 -0.47 (-0.74%)

Dow Chemical (DOW): Reported EPS of $0.50 missing estimates by -$0.04. Pre-market: 40.00 -1.04 (-2.53%)

Ford Motor (F): Reported EPS of $0.45 beating estimates by +$0.08. Pre-market: 18.11 +0.59 (3.37%)

Hershey Foods (HSY): Reported EPS of $1.04 beating estimates by +$0.03. Pre-market: 98.00 +1.15 (1.19%)

International Paper (IP): Reported EPS of $0.94 missing estimates by -$0.01. Pre-market: 44.63 +0.24 (0.54%)

Old Dominion Freight (ODFL): Reported EPS of $0.70 missing estimates by -$0.01. Pre-market: 47.00 -0.74 (-1.55%)

Potash (POT): Reported EPS of $0.41 in-line with estimates. Pre-market: 31.05 -0.65 (-2.05%)

Under Armour (UA): Reported EPS of $0.68 beating estimates by +$0.02. Pre-market: 78.97 -5.01 (-5.97%)

Xerox (XRX): Reported EPS of $0.26 beating estimates by +$0.01. Pre-market: 10.41 -0.32 (-2.98%)

Zimmer Hldgs (ZMH): Reported EPS of $1.25 beating estimates by +$0.01.

Markets: 
Futures at 6:20: Dow +0.4%. S&P +0.4%. Nasdaq +0.4%. Crude +0.4% to $97.27. Gold +0.1% to $1335.90. U.S. 10 Year +2/32 2.497%

Europe: London +0.4%. Paris +0.2%. Frankfurt +0.6%. 

Asia: Japan +0.4% to 14486. Hong Kong -0.7% to 22836. China -0.8% to 2165. India -0.2% to 20725. 

Morning Coffee Pre-Market Wall Street News

U.S. Govt. Shutdown, Who Cares? Markets worldwide were mostly higher despite the U.S. government’s partial shutdown.  The last partial shutdown was over 17 years ago and lasted almost a month. The closure comes after the House and Senate could not agree upon a budget to fund what many consider a blotted government. Most services will remain open despite the shutdown leading many to say who cares? The IRS, postal service, and military will remain open. Additionally, social security and welfare checks will also go out as scheduled. Government agencies that are considered non-essential, which are very few, will be closed and the employees furloughed. A full list can be found at http://www.cnn.com/interactive/2013/09/politics/government-shutdown-impact/

Upgrades:

AFLAC (AFL): FBR Capitol raised their rating from Market Perform to Outperform and raised their target price from $60.00 to $71.00. Pre-market: 61.99 0.00 (0.00%)

Airgas (ARG): Global Hunter raised their rating from Neutral to Buy and raised their target price from $107.00 to $130.00.

Cree (CREE): Canaccord raised their rating from Hold to Buy. Pre-market: 62.48 +2.29 (3.80%)

Nike (NKE): Argus raised their rating from Hold to Buy and placed a target price of $84.00 on the company. Pre-market: 73.25 +0.61 (0.84%)

T-Mobile (TMUS): Oppenheimer raised their rating from Perform to Outperform. Pre-market: 26.25 +0.28 (1.08%)

Under Armour (UA): JPMorgan raised their rating from Underweight to Buy. Pre-market: 79.45 0.00 (0.00%)

Downgrades:

Agilent Technologies(A): Stifel lowered their rating from Buy to Hold and placed a target price of $52.00 on the company.

EOG Resources (EOG): Societe Generale lowered their rating from Hold to Sell and placed a target price of $160.00 on the company. Pre-market: 168.52 -0.76 (-0.45%)

Hess Corp (HES): Societe Generale lowered their rating from Buy to Hold and placed a target price of $86.00 on the company. Pre-market: 76.83 -0.51 (-0.66%)

JC Penney (JCP): Argus lowered their rating from Buy to Hold. Pre-market: 8.83 +0.02 (0.28%)

Coverage Initiated:

Advisory Board (ABCO): Keybanc initiated coverage with a Buy rating and target price of $72.00.

News Corp (NWSA): Evercore initiated coverage with an Equal Weight rating and target price of $18.00. Pre-market: 16.06 0.00 (0.00%)

Earning Reports:

Diamond Foods (DMND): Reported EPS of $0.09 beating estimates by +$0.12. Pre-market: 21.95 -1.60 (-6.79%)

Paychex (PAYX): Reported EPS of $0.44 beating estimates by +$0.01. Pre-market: 40.64 0.00 (0.00%)

Walgreens (WAG): Reported EPS of $0.73 in-line with estimates. Pre-market: 53.34 -0.46 (-0.86%)

Markets: 
Futures at 8:22: Dow +0.26%. S&P +0.27%. Nasdaq +0.26%. Crude -0.01% to $102.34. Gold -0.79% to $1317.20. U.S. 10 Year -10/32 2.646%.

Europe: London -0.45%. Paris +0.59%. Frankfurt +0.43%. 

Asia: Japan +0.20% to 14485. Hong Kong -1.50% to 22860, China closed. India +0.71% to 19517 

Morning Coffee Pre-Market Wall Street News

Facebook Users Upset Over Privacy. Once again Facebook (FB) users are upset once they learned about the company newly proposed privacy language. The new language would allow for the indiscriminate use of members' information, likeness, and user-generated content for advertising purposes. Privacy groups are warning that the company is attempting to "routinely use the images and names of users for commercial advertising without consent. The Electronic Privacy Information Center, Center for Digital Democracy, Consumer Watchdog, Patient Privacy Rights, U.S. PIRG, and the Privacy Rights Clearinghouse have all voiced their concerns to the FTC in a letter.

Upgrades:

Diego PLC (DEO): Citigroup raised their rating from Neutral to Buy. Pre-market: 124.21 +1.13 (0.92%)

Ericsson (ERIC): Credit Suisse raised their rating from Neutral to Outperform. Pre-market: 13.00 +0.46 (3.67%)

Korn/Ferry (KFY): RW Baird raised their rating from Neutral to Outperform and raised their target price from $20.00 to $24.00. Pre-market: 19.72 +1.00 (5.34%)

Moody’s Corp (MCO): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $74.00 on the company.

Stryker (SYK): Credit Suisse raised their rating from Neutral to Outperform and maintained their target price of $77.00. Pre-market: 68.50 +0.71 (1.05%)

Coverage Initiated:

Arch Coal (ACI): Macquarie initiated coverage with a Neutral rating and target price of $4.50. Pre-market: 4.78 +0.05 (1.06%)

Brinker International (EAT): Wunderlich initiated coverage with a Hold rating and target price of $44.00.

Cracker Barrel Old Country Store (CBRL): Wunderlich initiated coverage with a Hold rating and target price of $106.00. Pre-market: 98.71 0.00 (0.00%)

Darden Restaurants (DRI): Wunderlich initiated coverage with a Hold rating and target price of $50.00. Pre-market: 47.43 +0.57 (1.22%)

Jack in the Box (JACK): Wunderlich initiated coverage with a Buy rating and target price of $46.00.

Peabody Energy (BTU): Macquarie initiated coverage with a Neutral rating and target price of $18.00. Pre-market: 18.20 +0.20 (1.11%)

Under Armour (UA): Jefferies initiated coverage with a Hold rating and target price of $71.00. Pre-market: 77.35 +0.46 (0.60%)

Zillow (Z): Deutsche Bank initiated coverage with a Hold rating and target price of $83.00

Earning Reports:

Korn/Ferry (KFY): Reported EPS of $0.33 beating estimates by +$0.03. Pre-market: 19.72 +1.00 (5.34%)

Smithfield Foods (SFD): Reported EPS of $0.27 missing estimates by -$0.16. Pre-market: 33.88 -0.08 (-0.24%)

Smith &Wesson (SWHC): Reported EPS of $0.45 beating estimates by +$0.09. Pre-market: 10.85 -0.63 (-5.49%)

Zumiez (ZUMZ): Reported EPS of $0.20 beating estimates by +$0.02. Pre-market: 24.05 -1.24 (-4.90%)

Markets: 
Futures at 8:31: Dow +0.34%. S&P +0.39%. Nasdaq +0.30%. Crude +0.17% to $109.17. Gold +0.88% to $1386.00. U.S. 10 Year +31/32 2.881%.

Europe: London -0.16%. Paris -0.12%. Frankfurt +0.53%. 

Asia: Japan -1.45% to 13860. Hong Kong +0.10% to 22621. China +0.83% to 2139. India +1.53% to 19263. 

Morning Coffee Pre-Market Wall Street News

Tesla’s Earnings Beat Estimates. Tesla's (TSLA) reported EPS of shares $0.05 vs consensus for a loss of $0.17, while revenues surged to $405.1M from $26.6M last year and the gross margin hit 22%. Helping the numbers is the very popular all electric Model S. Shares of the company rose 12.5% in the pre-market.

Upgrades:

Groupon (GRPN): Raymond James raised their rating from Underperform to Market Perform.

Microsoft (MSFT): Evercore raised their rating from Equal Weight to Overweight.

Lowe’s Cos (LOW): Cleveland Research raised their rating from Neutral to Buy.

Lowe’s Cos (LOW): JPMorgan raised their rating from Neutral to Overweight.

Tata Motors (TTM): Nomura raised their rating from Neutral to Buy.

Downgrades:

Ralph Lauren (RL): ISI Group lowered their rating from Strong Buy to Buy.

Target Corp (TGT): JPMorgan lowered their rating from Overweight to Neutral.

Whole Food Markets (WFM): Northcoast lowered their rating from Buy to Neutral.

Coverage Initiated:

Netflix (NFLX): RW Baird initiated coverage with a Neutral rating and target price of $263.00.

Nike (NKE): Wells Fargo initiated coverage with an Outperform rating and target range of $73.00 - $76.00.

Stryker (SYK): Needham initiated coverage with a Hold rating.

Under Armour (UA): Wells Fargo initiated coverage with a Market Perform rating and target range of $73.00 - $75.00.

Zimmer Holdings (ZMH): Needham initiated coverage with a Buy rating and target price of $98.00.

Earning Reports:

Advance Auto (AAP): Reported EPS of $1.59 beating estimates by +$0.10.

Chiquita Brands (CQB): Reported EPS of $0.66 beating estimates by +$0.20.

Cooper Tire (CTB): Reported EPS of $0.55 missing estimates by -$0.38.

Foster Wheeler (FWTL): Reported EPS of $0.54 beating estimates by +$0.21.

MAXIMUS (MMS): Reported EPS of $0.41 in-line with estimates.

Orbitz (OWW): Reported EPS of $0.00 missing estimates by -$0.10.

Tesla Motors (TSLA): Reported EPS of $0.05 beating estimates by +$0.22.

TreeHouse Foods (THS): Reported EPS of $0.65 beating estimates by +$0.02.

Transocean (RIG): Reported EPS of $1.08 in-line with estimates.

Markets: 

Futures at 9:10: Dow +0.42%. S&P +0.41%. Nasdaq +0.44%. Crude -0.89% to $103.50. Gold +0.59% to $1292.90. U.S. 10 Year 5/32 2.594

Europe: London +0.59%. Paris +0.70%. Frankfurt +0.90%. 

Asia: Japan -1.59% to 13606. Hong Kong +0.31% to 21656. China -0.09% to 2045. India +0.67% to 18,789.