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MORNING COFFEE

93 views  2012-08-06 07:09

Knight Capital receives bailout. Knight Capital (KCG), the trading firm behind last week’s software glitch that resulted in $440 million in losses is looking for a bailout.  Reports say that the firm is in talks with a consortium that includes Blackstone (BX), Jefferies Group (JEF), Stifel Nicolaus (SF) and TD Ameritrade (AMTD) to receive $400 million.  The investors would receive convertible preferred stock that gives them 70%-75% of Knight Capital. Additionally, the SEC has rejected request from Knight Capital to cancel many of the trades that were erroneously made due to its software glitch.

Upgrades

Wal-Mart (WMT): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $83.00 on the company. Pre-market: 74.89 +0.34 (0.46%)

American Water (AWK): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $35.00 to $41.00.

Regions Financial (RF): Bank of America / Merrill Lynch raised their rating from Neutral to Buy and raised their target price from $7.00 to $8.00.

Kodiak Oil & Gas (KOG): Global Hunter raised their rating from Neutral to Buy and raised their target price from $8.00 to $13.00. Pre-market: 8.34 +0.18 (2.21%)

Kraft Foods (KFT): Jefferies raised their rating from Hold to Buy and raised their target price from $8.00 to $13.00. Pre-market: 40.95 +0.44 (1.09%)

Downgrades

Progressive (PGR): Credit Suisse lowered their rating from Outperform to Neutral and lowered their target price from $25.00 to $18.00.

Earning Reports

Cognizant Tech (CTSH): Reported EPS of $0.82 beating estimates by +$0.02. Pre-market: 64.00 +6.14 (10.61%)

Tesco (TESO): Reported EPS of $0.34 beating estimates by +$0.01.

Tyson Foods (TSN): Reported EPS of $0.50 missing estimates by -$0.05. Pre-market: 15.16 -0.24 (-1.56%)

Markets: 
Futures at 8:04: Dow +0.13%. S&P +0.22%. Nasdaq +0.49%. Crude -0.36% to $91.06. Gold +0.15% to $1611.70.

Europe: London +0.31%. Paris +0.70%. Frankfurt +0.62%. 

Asia: Japan +2.00%. Hong Kong +1.69%. China +1.04%. India +1.25%. 

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