President Obama Will Act Alone

President Obama Will Act Alone. During last night’s State of the Union speech President Obama said that he would use his executive power to implement his economic and other policies, while highlighting the gap between the rich and poor that has widened during his administration. President Obama announced a dozen proposals including raising the minimum wage to $10.10 an hour for future federal contract workers that would affect about 560,000 people.  Additionally, some analysts believe he will also attempt to use his executive power to act on immigration reform and gun control, two hot buttons with American’s that many constitutional scholars say would be unconstitutional and illegal. During his speech the President also said he plans to create a government-coordinated retirement savings program that would provide a guaranteed return, but not additional specific are available at this time.

Upgrades:

CIT Group (CIT): Buckingham raised their rating from Neutral to Buy and placed a target price of $54.00 on the company.

VMware (VMW): Raymond James raised their rating from Outperform to Strong Buy and placed a target price of $109.00 on the company. Pre-market: 94.00 -0.94 (-0.99%)

Wal-Mart (WMT): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $80.00 to $87.00. Pre-market: 74.81 +0.14 (0.19%)

Downgrades:

WellPoint (WLP): Monness Crespi lowered their rating from Neutral to Sell. Pre-market: 81.60 -2.70 (-3.20%)

Yahoo! (YHOO): Gabelli lowered their rating from Buy to Hold. Pre-market: 35.90 -2.32 (-6.07%)

Earning Reports:

Amgen (AMGN): Reported EPS of $1.82 beating estimates by +0.14. Pre-market: 117.09 -3.61 (-2.99%)

AT&T (T): Reported EPS of $0.53 beating estimates by +0.03. Pre-market: 32.77 -0.93 (-2.76%)

Boeing (BA): Reported EPS of $1.88 beating estimates by +0.31. Pre-market: 131.75 -5.34 (-3.90%)

Cirrus Logic (CRUS): Reported EPS of $0.89 beating estimates by +0.12. Pre-market: 17.50 -1.24 (-6.62%)

Dow Chemical (DOW): Reported EPS of $0.65 beating estimates by +0.22.

EMC (EMC): Reported EPS of $0.60 beating estimates by +0.01. Pre-market: 25.50 +0.12 (0.47%)

Jetblue Airways (JBLU): Reported EPS of $0.14 beating estimates by +0.01. Pre-market: 8.74 0.00 (0.00%)

Novartis AG (NVS): Reported EPS of $1.20 beating estimates by +0.01. Pre-market: 78.94 -0.62 (-0.78%)

Phillips 66 (PSX): Reported EPS of $1.34 beating estimates by +0.24. Pre-market: 73.00 -2.08 (-2.77%)

VMware (VMW): Reported EPS of $1.01 beating estimates by +$0.01. Pre-market: 94.00 -0.94 (-0.99%)

WellPoint (WLP): Reported EPS of $0.87 in-line with estimates. Pre-market: 81.60 -2.70 (-3.20%)

Yahoo! (YHOO): Reported EPS of $0.46 beating estimates by +0.08. Pre-market: 35.90 -2.32 (-6.07%)

Markets:
Futures at 8:33: Dow -0.49%. S&P -0.45%. Nasdaq -0.46%. Crude -0.15% to $97.27. Gold +1.02% to $1263.70. U.S. 10 Year +10/32 to 2.724%.

Europe: London -0.51%. Paris -0.86%. Frankfurt -0.48%.

Asia: Japan +2.70% to 15384. Hong Kong +0.82% to 22142. China +0.56% to 2050. India -0.18% to 20647.

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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. 

#RLPaler

Morning Coffee Pre-Market Wall Street News

Fed News Sends World Markets Higher. Yesterday the Federal Reserve unexpectedly announced that it would keep its monetary stimulus policy unchanged.  The news sent world stock markets and commodity prices higher. The Fed will maintain its asset purchase program of $85 billion a month instead of tapering off the program.  Economists have expected a $10 billion monthly reduction in the program.

Rick Paler President of RL Paler Investment Advisors, LLC said “The Fed news should help the stock market and lower mortgage rates going forward, but also indicates the Fed is still worried about the economy.”

Upgrades:

AOL (AOL): Topeka raised their rating from Hold to Buy and placed a target price of $43.00 on the company. Pre-market: 35.45 +1.08 (3.14%)

Diageo PLC (DEO): Bernstein raised their rating from Market Perform to Outperform. Pre-market: 134.07 +2.80 (2.13%)

Groupon (GRPN): Stifel raised their rating from Hold to Buy and placed a target price of $16.00 on the company. Pre-market: 12.02 +0.47 (4.07%)

Travelers Cos. (TRV): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $84.00 to $94.00.

Time Warner (TWX): Morgan Stanley raised their rating from Equal Weight to Overweight and raised their target price to $72.00. Pre-market: 64.35 +1.01 (1.59%)

Downgrades:

FedEx (FDX): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $116.00 to $112.00. Pre-market: 115.06 -1.19 (-1.02%)

Walt Disney (DIS): Morgan Stanley lowered their rating from Overweight to Equal Weight and lowered their target price to $70.00. Pre-market: 66.45 -0.66 (-0.98%)

Coverage Initiated:

Amazon.com (AMZN): CRT Capital initiated coverage with a Buy rating and target price of $350.00. Pre-market: 312.40 +0.37 (0.12%)

Cardinal Health (CAH): Sterne Agee initiated coverage with a Neutral rating and target price of $48.00.

Cisco Systems (CSCO): Credit Suisse initiated coverage with an Underperform rating and target price of $21.00. Pre-market: 24.56 -0.24 (-0.95%)

Google (GOOG): CRT Capital initiated coverage with a Buy rating and target price of $1090.00. Pre-market: 905.70 +2.38 (0.26%)

LinkedIn (LNKD): CRT Capital initiated coverage with a Buy rating and target price of $302.00. Pre-market: 252.00 +2.42 (0.97%)

Netflix (NFLX): CRT Capital initiated coverage with a Fair Value rating. Pre-market: 307.25 +0.33 (0.11%)

Oracle (ORCL): William Blair initiated coverage with a Market Perform rating. Pre-market: 33.66 -0.21 (-0.62%)

Quest Diagnostics (DGX): Craig-Hallum initiated coverage with a Buy rating and target price of $74.00.

Yahoo! (YHOO): CRT Capital initiated coverage with a Fair Value rating. Pre-market: 30.52 +0.09 (0.28%)

Zillow (Z): CRT Capital initiated coverage with a Fair Value rating.

Earning Reports:

ConAgra (CAG): Reported EPS of $0.37 in-line with estimates. Pre-market: 31.69 -0.38 (-1.18%)

Oracle (ORCL): Reported EPS of $0.59 beating estimates by +$0.03. Pre-market: 33.66 -0.21 (-0.62%)

Rite Aid (RAD): Reported EPS of $0.03 beating estimates by +$0.07. Pre-market: 4.17 +0.46 (12.40%)

Scholastic Corp (SCHL): Reported EPS of -0.90 missing estimates by -$0.28.

Steelcase (SCS): Reported EPS of $0.24 missing estimates by -$0.02.

Markets: 
Futures at 8:09: Dow +0.14%. S&P +0.21%. Nasdaq +0.23%. Crude +0.7% to $108.40. Gold +4.76% to $1369.70. U.S. 10 Year -3.32 2.704%.

Europe: London +1.40%. Paris +0.86%. Frankfurt +0.99%. 

Asia: Japan +1.80% to 14766. Hong Kong +1.67% to 23502. China, Closed. India +3.43% to 20607.