Morning Coffee Pre-Market Wall Street News

Eurozone PMI Continues to Rise. The Eurozone continues to recover as the composite PMI increased to a 27-month high of 52.1 from 51.5. Economists had been looking for a reading of only 51.9. Services exceeded expectations, but manufacturing unexpectedly fell. Economists say that the current reading is consistent with GDP growth of 0.2%.

Upgrades:

Copart (CPRT): RW Baird raised their rating from Neutral to Outperform and raised their target price from $38.00 to $42.00. Pre-market: 34.50 +0.75 (2.22%)

Darden Restaurants (DRI): Buckingham raised their rating from Underperform to Neutral and placed a target price of $44.00 on the company.

Maxim Integrated Products (MXIM): Goldman Sachs raised their rating from Neutral to Conviction Buy and raised their target price from $30.00 to $34.00. Pre-market: 30.48 +0.80 (2.70%)

Nokia (NOK): HSBC raised their rating from Underweight to Neutral. Pre-market: 6.56 -0.02 (-0.30%)

Walgreen (WAG): Morgan Stanley raised their rating from Equal Weight to Overweight and placed a target price of $70.00 on the company. Pre-market: 56.00 +0.48 (0.86%)

Zimmer Holdings (ZMH): RBC Capital raised their rating from Sector Perform to Outperform.

Downgrades:

BlackBerry (BBRY): RBC Capital lowered their rating from Sector Perform to Underperform. Pre-market: 8.43 -0.30 (-3.38%)

BlackBerry (BBRY): RW Baird lowered their rating from Neutral to Underperform and lowered their target price from $9.00 to $8.00. Pre-market: 8.43 -0.30 (-3.38%)

Darden Restaurants (DRI): Stephens lowered their rating from Overweight to Equal Weight and lowered their target price from $55.00 to $52.00.

DreamWorks Animation (DWA): B. Riley lowered their rating from Buy to Neutral.

FedEx (FDX): Stifel lowered their rating from Buy to Hold. Pre-market: 115.50 -1.33 (-1.14%)

ING Groep (ING): BNP Paribas lowered their rating from Outperform to Neutral. Pre-market: 11.40 -0.14 (-1.21%)

Oceaneering Intl (OII): Global Hunter lowered their rating from Buy to Neutral and lowered their target price from $92.00 to $81.00.

Coverage Initiated:

Nokia (NOK): Deutsche Bank initiated coverage with a Buy rating. Pre-market: 6.56 -0.02 (-0.30%)

Markets: 
Futures at 6:20: Dow +0.1%. S&P +0.2%. Nasdaq +0.3%. Crude +0.2% to $104.95. Gold -0.8% to $1322. U.S. 10 Year 0/32 2.736%

Europe: London -0.2%. Paris +0.1%. Frankfurt 0.0%. 

Asia: Japan closed. Hong Kong -0.6% to 23372. China +1.3% to 2221. India -1.8% to 19901. 

Morning Coffee Pre-Market Wall Street News

Walgreen’s drops Medical Coverage for Employees. Walgreen (WAG) is expected to announce today that they will no longer offer health care insurance for employees and their families. Instead the company is expected to give employees cash so they can buy their own insurance on an exchange. The company is expected to site the Obamacare law for the change. Several companies have already announced that they will be dropping health insurance for their employees or spouses. They include IBM and Time Warner, Trader Joes, UPS, and Xerox. Additionally, McDonalds and Dunkin Donuts are looking to get waivers from the law.

Upgrades:

Comstock (CRK): Global Hunter Securities raised their rating from Accumulate to Buy.

Downgrades:

Caterpillar (CAT): Robert W. Baird lowered their rating from Outperform to Neutral and maintained their target price of $90.00. Pre-market: 86.41 -0.66 (-0.76%)

Exelon (EXC): RBC Capital lowered their rating from Outperform to Sector Perform.

Intuit (INTU): Morgan Stanley lowered their rating from Equal Weight to Underweight and placed a target price of $62.00 on the company.

James River Coal (JRCC): BB&T lowered their rating from Hold to Underweight.

Joy Global (JOY): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $57.00 to $55.00. Pre-market: 52.38 -0.58 (-1.10%)

Coverage Initiated:

Allstate (ALL): Guggenheim initiated coverage with a Buy rating and target price of $63.00.

Marsh & McLennan (MMC): Guggenheim initiated coverage with a Buy rating and target price of $51.00.

Symantec (SYMC): Nomura initiated coverage with a Neutral rating.

Travelers Cos. (TRV): Guggenheim initiated coverage with a Neutral rating and target price of $87.00.

United States Steel (X): BMO Capital initiated coverage with a Market Perform rating and target price of $19.00.

Earning Reports:

Adobe Systems (ADBE): Reported EPS of $0.32 missing estimates by -$0.02. Pre-market: 51.20 +3.06 (6.36%)

Cracker Barrel (CBRL): Reported EPS of $1.43 beating estimates by +$0.08. Pre-market: 103.00 -4.00 (-3.74%)

FedEx (FDX): Reported EPS of $1.53 beating estimates by +$0.03. Pre-market: 113.80 +3.12 (2.82%)

General Mills (GIS): Reported EPS of $0.70 in-line with estimates. Pre-market: 50.02 +0.24 (0.48%)

Markets: 
Futures at 8:57: Dow -0.03%. S&P -0.01%. Nasdaq +0.27%. Crude +0.43% to $105.90. Gold -0.50% to $1302.90. U.S. 10 Year -3/32 2.867%.

Europe: London -0.04%. Paris +0.37%. Frankfurt +0.28%. 

Asia: Japan +1.35% to 14505. Hong Kong -0.27% to 23117. China +0.29% to 2192. India +0.80% to 19962.