Morning Coffee Pre-Market Wall Street News

AT&T Exploring Vodafone Acquisition. Reports say that AT&T (T) is exploring a possible takeover of cell phone competitor Vodafone (VOD). If AT&T decides to proceed it would create a company with a market cap in excess of $250B and over 500M wireless subscribers. The deal would have to wait until Vodafone closes the sale of its Verizon Wireless stake. (T) Pre-market: 36.45 +0.25 (0.69%) (VOD): Pre-market: 36.99 +0.14 (0.37%)

Upgrades:

Facebook (FB): Argus raised their rating from Hold to Buy and placed a target price of $64.00 on the company. Pre-market: 50.86 +0.65 (1.30%)

ITT Corp (ITT): RW Baird raised their rating from Neutral to Outperform and raised their target price from $37.00 to $52.00. Pre-market: 39.73 0.00 (0.00%)

Netflix (NFLX): RW Baird raised their rating from Neutral to Outperform and raised their target price from $383.00 to $420.00. Pre-market: 330.73 +8.25 (2.56%)

Downgrades:

American International Group (AIG): Drexel Hamilton lowered their rating from Buy to Hold. Pre-market: 49.08 -2.57 (-4.98%)

PETsMart (PETM): Bank of America Merrill Lynch lowered their rating from Buy to Neutral and lowered their target price to $80.00.

Sony Corp. (SNE): Jeffries lowered their rating from Buy to Hold. Pre-market: 17.01 -0.24 (-1.39%)

Strayer Education (STRA): Morgan Stanley lowered their rating from Equal Weight to Underweight and placed a target price of $30.00 on the company. Pre-market: 37.52 -1.90 (-4.82%)

Earning Reports:

Fluor (FLR): Reported EPS of $1.02 beating estimates by +$0.02.

Markets: 
Futures at 7:19: Dow +0.25%. S&P +0.26%. Nasdaq +0.22%. Crude -0.75% at $95.63. Gold -0.80% to $1313.00. U.S. 10 Year -8/32 2.587%.

 Europe: London +0.04%. Paris -0.32%. Frankfurt -0.16%. 

Asia: Japan -0.88% to 14202. Hong Kong +0.19% to 23250. China +0.37% to 2150. India +0.15% to 21197. 

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Morning Coffee Pre-Market Wall Street News

Microsoft to Buy Nokia. Reports say that Microsoft (MSFT) has agreed to purchase Nokia’s (NOK) handset unit for $5B and license its patents and mapping services for $2.2B. Nokia’s CEO Stephen Elop as well as other senior Nokia executives will be joining Microsoft, along with the company’s 32,000 workers. (MSFT) Pre-market: 31.84 -1.56 (-4.67%)  (NOK)  Pre-market: 5.54 +1.64 (42.05%)

Upgrades:

AT&T (T): Macquarie raised their rating from Underperform to Neutral. Pre-market: 34.05 +0.22 (0.65%)

Constellation Brands (STZ): Goldman Sachs raised their rating from Neutral to Buy and raised their target price for $59.00 to $65.00.

Finish Line (FINL): Janney Capital raised their rating from Neutral to Buy and raised their target price for $24.00 to $26.00.

NASDAX OMX (NDAQ): BMO Capital raised their rating from Market Perform to Outperform.

Nokia (NOK): Credit Suisse raised their rating from Underperform to Neutral. Pre-market: 5.54 +1.64 (42.05%)

Nokia (NOK): Oppenheimer raised their rating from Underperform to Perform. Pre-market: 5.54 +1.64 (42.05%)

Nokia (NOK): Bernstein raised their rating from Underperform to Market Perform. Pre-market: 5.54 +1.64 (42.05%)

Nokia (NOK): Deutsche Bank raised their rating from Sell to Hold.

Ryder Systems (R): Buckingham raised their rating from Neutral to Buy and maintained their target price of $68.00.

Verizon (VZ): RBC Capital raised their rating from Sector Perform to Outperform. Pre-market: 45.48 -1.90 (-4.33%)

Vodafone (VOD): Bernstein raised their rating from Underperform to Market Perform. Pre-market: 31.79 -0.56 (-1.73%)

Downgrades:

Apple (APPL): ABG Sundal lowered their rating from Hold to Sell and maintained their target price of $400.00. Pre-market: 492.00 +4.78 (0.98%)

Coca-Cola (KO): CLSA lowered their rating from Outperform to Underperform. Pre-market: 38.40 +0.22 (0.58%)

Dean Foods (DF): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $23.00 to $21.00.

Shaw Communications (SJR): BMO Capital lowered their rating from Outperform to Market Perform and lowered their target price from $27.00 to $26.00.

Coverage Initiated:

ING Groep NV (ING): UBS initiated coverage with a Buy rating and target price of $12.75. Pre-market: 11.01 +0.14 (1.29%)

Markets: 
Futures at 6:30: Dow +0.71%. S&P +0.82%. Nasdaq +0.66%. Crude -0.29% to $107.37. Gold -0.25% to $1392.80. U.S. 10 Year -15/32 2.846%.

Europe: London -0.14%. Paris -0.19%. Frankfurt -0.23%. 

Asia: Japan +2.99% to 13978. Hong Kong +0.99% to 22395. China +1.18% to 2123. India -3.45% to 18235. 

Morning Coffee Pre-Market Wall Street News

Consumer Spending Misses Estimates. The Commerce Department reported that personal spending for July rose 0.1% missing Wall Street economists’ estimates. Wall Street had expected personal spending to rise 0.3%. June’s numbers where revised higher to 0.6% from 0.5%. Personal income for July rose 0.1% in-line with estimates, but down from the prior months 0.3% reading. Consumer spending accounts for 70% of the economy. Job growth and wage gains are needed as interest rates on mortgages and home prices continue to rise.  If not, this could cause consumers to stop spending and detail to housing recovery.

Upgrades:

Apache Corp (APA): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $93.00 to $99.00.

Deutsche Bank (DB): JPMorgan raised their rating from Neutral to Overweight.

Intel (INTC): Argus raised their rating from Hold to Buy and placed a target price of $28.00 on the company.

Downgrades:

Joy Global (JOY): BB&T lowered their rating from Buy to Hold.

OmniVision (OVTI): Northland Securities lowered their rating from Outperform to Market Perform.

OmniVision (OVTI): Craig-Hallum lowered their rating from Buy to Hold and lowered their target price from $24.00 to $18.00.

OmniVision (OVTI): Oppenheimer lowered their rating from Outperform to Perform.

Staples (SPLS): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $17.00 to $15.00.

Vodafone (VOD): RW Baird lowered their rating from Outperform to Neutral. Pre-market: 32.03 +0.23 (0.72%)

Coverage Initiated:

Baidu (BIDU): JPMorgan initiated coverage with an Overweight rating and raised their target price from $115.00 to $165.00.

Earning Reports:

bebe Stores (BEBE): Reported EPS of -$0.14 missing estimates by -$0.01.

Big Lots (BIG): Reported EPS of $0.31 beating estimates by +$0.07. Pre-market: 35.35 +0.71 (2.05%)

Krispy Kreme (KKD): d EPS of -$0.14 missing estimates by -$0.02. Pre-market: 20.82 -2.41 (-10.37%)

OmniVision (OVTI): Reported EPS of $0.55 beating estimates by +$0.12. Pre-market: 16.17 -2.24 (-12.17%)

Pacific Sunwear (PSUN): Reported EPS of $0.02 beating estimates by +$0.02. Pre-market: 3.69 -0.23 (-5.87%)

Salesforce.com (CRM): Reported EPS of $0.09 beating estimates by +$0.02. Pre-market: 47.50 +3.85 (8.82%)

Yingli Green Energy (YGE): Reported EPS of -$0.33 in-line with estimates. Pre-market: 4.36 +0.16 (3.81%)

Markets: 
Futures at 8:07: Dow +0.11%. S&P +0.18%. Nasdaq +0.26%. Crude -0.87% to $107.83. Gold -1.12% to $1396.90. U.S. 10 Year -1/32 2.766%

Europe: London -0.45%. Paris -0.76%. Frankfurt -0.71%. 

Asia: Japan -0.53% to 13389. Hong Kong +0.12% to 21731. China +0.05% to 2098. India +1.19% to 18612.