Morning Coffee Pre-Market Wall Street News

Costco Announced Special Dividend. Bulk retailer Costco (COST) is the latest company to announce a special dividend to be paid out prior to the New Year.  The dividend of $3 billion or $7.00 per share will allow shareholders to take advantage of the current 15% tax rate on dividends. Beginning next year taxes on dividends are expected to increase to 40% versus the current 15%. This quarter alone a record 103 companies have said that they'll pay special dividends before the end of the year. If taxes on dividends are increased to 40% companies are expected to favor share buybacks over dividends. Pre-market: 100.26 +3.75 (3.89%)

Upgrades

AK Steel (AKS): Dahlman Rose raised their rating from Sell to Hold. Pre-market: 3.83 +0.04 (1.06%)

Downgrades

Ensco (ESV): Deutsche Bank lowered their rating from Buy to Hold and placed a target price of $58.00 on the company.

Nabors (NBR): Deutsche Bank lowered their rating from Buy to Hold and placed a target price of $28.00 on the company. Pre-market: 14.12 +0.32 (2.32%)

Sherwin-Williams (SHW): Nomura lowered their rating from Buy to Neutral and placed a target price of $170.00 on the company. Pre-market: 155.81 -1.34 (-0.85%)

Coverage Initiated

Vodafone PLC (VOD): Robert W. Baird initiated coverage with an Outperform rating and target price of $30.00. Pre-market: 25.19 +0.15 (0.60%)

Check Point Software (CHKP): BMO Capital initiated coverage with a Market Perform rating and target price of $48.00.

Earning Reports

Green Mountain Coffee (GMCR): Reported EPS of $0.65 beating estimates by +$0.16. Pre-market: 34.58 +5.63 (19.45%)

American Eagle (AEO): Reported EPS of $0.41 beating estimates by +$0.02. Pre-market: 20.70 +1.31 (6.76%)

Express (EXPR): Reported EPS of $0.20 beating estimates by +$0.03. Pre-market: 14.18 +1.19 (9.16%)

Jos. A Bank (JOSB): Reported EPS of $0.47 missing estimates by -0.09.

Movado Group (MOV): Reported EPS of $0.67 beating estimates by +$0.05. Pre-market: 34.51 +2.28 (7.07%)

Markets: 
Futures at 8:20: Dow -0.27%. S&P -0.37%. Nasdaq -0.33%. Crude -1.12% to $86.20. Gold -1.57% to $1715.00.

Europe: London -0.41%. Paris -0.40%. Frankfurt -0.36%. 

Asia: Japan -1.22% to 9308. Hong Kong -0.62% to 21709. China -0.89% to 1974. India +1.65% to 18842.