Morning Coffee Pre-Market Wall Street News

Record Outflows from Bond Funds. According to TrimTabs a record $79.8B was pulled from exchange-traded and mutual funds in June. The amount of outflow from bonds was almost double the $41B withdrawn during the financial crisis in October 2008. Mutual funds saw a mass exodus of $70.8B and ETFs saw $9B withdrawn in June. Some on Wall Street believe the exodus could continue once investors receive their latest quarterly statements.

Upgrades:

Apple (AAPL): Raymond James raised their rating from Outperform to Strong Buy and maintained a target price of $600.00. Pre-market: 402.81 +6.28 (1.58%)

Big Lots (BIG): MKM Partners raised their rating from Neutral to Buy and placed a target price of $38.00 on the company.

Covance (CVD): Raymond James raised their rating from Market Perform to Strong Buy.

Intuit (INTU): Raymond James raised their rating from Market Perform to Strong Buy. Pre-market: 61.89 +0.85 (1.39%)

LG Display Co (LPL): Topeka raised their rating from Sell to Hold.

MGM Resorts (MGM): Janney Capital raised their rating from Neutral to Buy. Pre-market: 15.03 +0.25 (1.69%)

Tyco Intl (TYC): Morgan Stanley raised their rating from Equal Weight to Overweight and placed a target price of $39.00 on the company. Pre-market: 33.50 +0.55 (1.67%)

Downgrades:

3M (MMM): Morgan Stanley lowered their rating from Overweight to Equal Weight and placed a target price of $112.00 on the company. Pre-market: 108.28 -1.07 (-0.98%)

Coverage Initiated:

Express Scripts (ESRX): Monness Crespi initiated coverage with a Buy rating.

Kennametal (KMT): Goldman Sachs initiated coverage with a Neutral rating and target price of $43.00.

21^st Century Fox (FOXA): Evercore initiated coverage with an Overweight rating and target price of $34.00.

21^st Century Fox (FOXA): Wedbush initiated coverage with an Outperform rating and target price of $31.00.

21^st Century Fox (FOXA): Credit Suisse initiated coverage with an Outperform rating and target price of $34.00.

Markets: 
Futures at 8:27: Dow +0.55%. S&P +0.45%. Nasdaq +0.71%. Crude +1.00% to $97.54. Gold +2.12% to $1237.50. U.S. 10 yr -10/32 2.528%

Europe: London +0.86%. Paris +0.56%. Frankfurt +0.23%. 

Asia: Japan +1.28% to 13852.5. Hong Kong +1.78% to 20803. China +0.81% to 1995. India +0.94% to 19593. 

Morning Coffee Pre-Market Wall Street News

Nike Beats Earnings Estimates. Sporting goods manufacture Nike (NKE) reported that their FQ4 earnings beat Wall Street expectations. Net profit at the company soared +22% to $668M, adjusted EPS came in at $0.76 while revenues climbed +7% to $6.7B. Sales in North American increased by +12% and revenues continued to grow in emerging markets.  The company saw a decline in both Japan and Europe, while China was flat. Pre-market: 61.10 -1.22 (-1.96%)

Upgrades:

Bed Bath & Beyond (BBBY): BofA Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $82.00 on the company. After Hours: 70.15 0.00 (0.00%)

Zumiez (ZUMZ): Wedbush raised their rating from Neutral to Outperform and raised their target price from $30.00 to $36.00. Pre-market: 28.25 +0.30 (1.07%)

Pacific Sunwear (PSUN): Wedbush raised their rating from Neutral to Outperform and raised their target price from $3.75 to $4.00. Pre-market: 3.41 +0.08 (2.40%)

Downgrades:

Accenture (ACN): UBS lowered their rating from Buy to Neutral and lowered their target price from $85.00 to $77.00. Pre-market: 73.50 -6.72 (-8.38%)

BAE Systems (BAESY): Deutsche Bank lowered their rating from Buy to Hold.

Owens Corning (OC): Citigroup lowered their rating from Buy to Neutral and lowered their target price from $48.00 to $43.00.

Coverage Initiated:

Cognizant Tech (CTSH): Societe Generale initiated coverage with a Buy rating and target price of $74.00. Pre-market: 61.00 -2.10 (-3.33%)

Infosys (INFY): Societe Generale initiated coverage with a Hold rating and target price of $44.00. Pre-market: 41.50 +0.11 (0.27%)

Tesla Motors (TSLA): Wedbush initiated coverage with a Neutral rating and target price of $110.00. Pre-market: 110.02 +0.77 (0.70%)

Torchmark (TMK): RBC Capital initiated coverage with an Underperform rating and target price of $60.00. After Hours: 65.72 0.00 (0.00%)

Earning Reports:

Accenture (ACN): Reported EPS of $1.14 beating estimates by +$0.01. Pre-market: 73.50 -6.72 (-8.38%)

Finish Line (FINL): Reported EPS of $0.20 beating estimates by +$0.04. After Hours: 21.20 0.00 (0.00%)

Nike (NKE): Reported EPS of $0.76 beating estimates by +$0.01. Pre-market: 61.10 -1.22 (-1.96%)

Research in Motion (BBRY): Reported EPS of -$0.13 missing estimates by -$0.20. Pre-market: 11.91 -2.57 (-17.75%)

Markets: 

Futures at 6:25: Dow +0.19%. S&P +0.15%. Nasdaq +0.16%. Crude +0.24% to $97.27. Gold -0.65% to $1204.00. U.S. 10 Year +4/32 2.456%

Europe: London -0.05%. Paris -0.49%. Frankfurt -0.21%. 

Asia Japan +3.51% to 13677. Hong Kong +1.78% to 20803. China+1.50% to 1979. India +2.75% to 19396. 

Morning Coffee Pre-Market Wall Street News

U.S. Stock Futures Higher Ahead of FOMC Meeting. U.S. stock futures are higher before the opening as traders anxiously await the beginning of the FOMC meeting. The two day policy meeting is scheduled to begin today. Wall Street will be waiting for comments on the direction of the economy, interest rates and the potential winding down of the Fed’s bond buying program. Additionally, the inflation data of May is scheduled to be released today. Economists estimates are that the CPI rose +0.2% month-over-month after falling -0.4% in April, with the main driver of inflation being food and energy cost.

Upgrades:

Daimler AG (DDAIF): Natixis raised their rating from Hold to Buy.

Flir Systems (FLIR): Raymond James raised their rating from Market Perform to Strong Buy and placed a target price of $33.00 on the company.

Downgrades:

Charles River Labs (CRL): Goldman Sachs lowered their rating from Neutral to Sell. Pre-market: 42.40 -0.81 (-1.87%)

HSBC Holdings PLC (HBC): Citigroup lowered their rating from Buy to Neutral. Pre-market: 54.53 +0.74 (1.38%)

Williams Cos. (WMB): Goldman Sachs lowered their rating from Conviction Buy to Buy and placed a target price of $40.00 on the company. Pre-market: 33.00 -0.64 (-1.90%)

Coverage Initiated:

Huntington Ingalls (HII): Stifel initiated coverage with a Hold rating.

LinkedIn (LNKD): Pacific Crest initiated coverage with an Outperform rating and target price of $215.00. Pre-market: 179.21 +1.62 (0.91%)

T-Mobile U.S. (TMUS): Canaccord initiated coverage with a Hold rating and target price of $22.00.

Earning Reports:

FactSet (FDS): Reported EPS of $1.15 missing estimates by -$0.11. Pre-market: 99.01 -4.75 (-4.58%)

Korn/Ferry (KFY): Reported EPS of $0.32 beating estimates by +0.01.

Markets: 

Futures at 7:00: Dow +0.21%. S&P +0.09%. Nasdaq +0.35%. Crude -0.02% to $97.75. Gold -0.68% to $1373.90.

Europe: London +0.85%. Paris -0.05%. Frankfurt +0.05%. 

Asia: Japan -0.20% to 13007. Hong Kong 0.00% at 21226. China +0.14% to 2159. India -0.53% at 19223. 

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

Microsoft Unveils Xbox One. Yesterday Microsoft (MSFT) unveiled the highly anticipated Xbox One calling it "the ultimate all-in-one entertainment system." The device allows usurers to instantly switch between games, live TV, movies, Skype and the internet using voice recognition and hand jesters. Xbox One also allows multi tasking such as watching TV and browsing the internet or taking a Skype call at the same time. The design is similar to set-top box and has an improved controller, improved Xbox Live UI, improved app and game loading. Switching times have been dramatically improved as you move to different application and the device has new voice and gesture controls.  Pre-market: 34.91 +0.06 (0.17%)

Upgrades

Bristol-Meyers Squibb (BMY): Citigroup raised their rating from Neutral to Buy and raised their target price from $33.00 to $55.00. Pre-market: 44.70 +0.64 (1.45%)

Cree (CREE): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $72.00 on the company. Pre-market: 61.90 +2.05 (3.43%)

Volvo (VOLVY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

Comerica (CMA): Oppenheimer lowered their rating from Perform to Underperform and placed a target price of $22.00 on the company. Pre-market: 39.00 -0.65 (-1.64%)

Dick’s Sporting Goods (DKS): BMO Capital lowered their rating from Outperform to Market Perform and placed a target price of $57.00 on the company. Pre-market: 52.34 -0.41 (-0.78%)

Research In Motion (BBRY): BNP Paribas lowered their rating from Neutral to Underperform. Pre-market: 14.59 -0.18 (-1.22%)

Soda Stream (SODA): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 63.30 -1.53 (-2.36%)

SunTrust Banks (STI): Oppenheimer lowered their rating from Outperform to Perform and placed a target price of $32.00 on the company. Pre-market: 32.15 0.00 (0.00%)

Coverage Initiated

Coca-Cola (KO): BMO Capital initiated coverage with a Market Perform rating and target price of $45.00. Pre-market: 42.54 +0.20 (0.47%)

Dr Pepper Snapple (DPS): BMO Capital initiated coverage with a Market Perform rating and target price of $48.00.

Monster Beverage (MNST): BMO Capital initiated coverage with an Outperform rating and target price of $65.00.

PepsiCo (PEP): BMO Capital initiated coverage with an Outperform rating and target price of $92.00. Pre-market: 82.64 +0.01 (0.01%)

Earning Reports

American Eagle (AEO): Reported EPS of $0.18 beating estimates by +$0.01. Pre-market: 19.96 -0.35 (-1.72%)

Analog Devices (ADI): Reported EPS of $0.52 in-line with estimates.

Compuware (CPWR): Reported EPS of -$0.30 missing estimates by -$0.35.

Dycom (DY): Reported EPS of $0.21 beating estimates by +$0.04. Pre-market: 23.89 +3.48 (17.05%)

Intuit (INTU): Reported EPS of $2.97 beating estimates by +$0.04. Pre-market: 58.64 +0.75 (1.30%)

Lowe's (LOW): Reported EPS of $0.49 missing estimates by -$0.01. Pre-market: 41.85 -0.60 (-1.41%)

NetApp (NTAP): Reported EPS of $0.69 beating estimates by +$0.01. Pre-market: 38.85 +2.22 (6.06%)

Staples (SPLS): Reported EPS of $0.26 missing estimates by -$0.01. Pre-market: 14.36 -0.39 (-2.64%)

Target (TGT): Reported EPS of $0.77 missing estimates by -$0.10. Pre-market: 69.69 -1.57 (-2.20%)

Markets: 
Futures at 7:00: Dow +0.12%. S&P +0.17%. Nasdaq +0.17%. Crude -0.93% to $95.81. Gold +0.62% to $1386.00.

Europe: London -0.16%. Paris -0.43%. Frankfurt -0.18%. 

Asia: Japan +1.60% to 15627. Hong Kong -0.45% to 23261. China -0.12% to 2302. India -0.25% to 20062.