Morning Coffee Pre-Market Wall Street News

U.S. Banks Pass Stress Test. Eighteen major banks have passed the Fed's stress tests. The test presumes a GDP falling 5% unemployment of 12%, a fall in stocks of 50% and a recession overseas. The banks needed to have a Tier 1 Common Ratio of over 5%. Citigroup (C) was the most overcapitalized with a 8.3% common ratio. Ally Financial was the only bank to fail the test.

Upgrades

Dean Foods (DF): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $21.00 on the company. Pre-market: 17.60 +0.33 (1.91%)

Pandora Media (P): Albert Fried raised their rating from Market Perform to Outperform and raised their target price from $12.00 to $19.00. Pre-market: 14.72 +2.99 (25.49%)

Smithfield Foods (SFD): Stephens raised their rating from Equal Weight to Overweight. Pre-market: 25.95 +1.27 (5.15%)

Southwest Airlines (LUV): UBS raised their rating from Neutral to Buy. Pre-market: 12.33 +0.24 (1.99%)

Tenet Healthcare (THC): CRT Capital raised their rating from Fair Value to Buy. Pre-market: 42.11 +0.35 (0.84%)

Time Warner (TWX): Argus raised their rating from Hold to Buy.

Downgrades

Skullcandy (SKUL): Northland Capital lowered their rating from Outperform to Market Perform and lowered their target price from $12.00 to $6.00. Pre-market: 5.48 -1.24 (-18.45%)

Skullcandy (SKUL): Craig-Hallum lowered their rating from Buy to Hold and placed a target price of $8.00 on the company. Pre-market: 5.48 -1.24 (-18.45%)

Skullcandy (SKUL): DA Davidson lowered their rating from Buy to Underperform. Pre-market: 5.48 -1.24 (-18.45%)

Skullcandy (SKUL): Northland Securities lowered their rating from Outperform to Market Perform. Pre-market: 5.48 -1.24 (-18.45%)

Skullcandy (SKUL): Raymond James lowered their rating from Market Perform to Underperform. Pre-market: 5.48 -1.24 (-18.45%)

Tiffany & Co. (TIF): Canaccord Genuity lowered their rating from Hold to Sell and placed a target price of $52.00 on the company. Pre-market: 70.18 -0.70 (-0.99%)

Coverage Initiated

Xilinx (XLNX): Argus initiated coverage with a Hold rating. Pre-market: 38.24 0.00 (0.00%)

Zillow (Z): The Benchmark Company resumed coverage with a Buy rating and raised their target price from $30.00 to $32.00. Pre-market: 50.40 +0.72 (1.45%)

Coverage Reiterated/Price Target Changed 

Honeywell (HON): Oppenheimer reiterated their Outperform rating and raised their target price from $80.00 to $87.00. Pre-market: 72.83 +0.66 (0.91%)

Earning Reports

Footlocker (FL): Reported EPS of $0.73 beating estimates by +$0.01. Pre-market: 34.36 -0.95 (-2.69%)

Genesco (GCO): Reported EPS of $2.16 beating estimates by +$0.05. Pre-market: 62.02 +0.85 (1.39%)

H & R Block (HRB): Reported EPS of -$0.22 missing estimates by -$0.19. Pre-market: 26.45 +1.47 (5.88%)

Medifast (MED): Reported EPS of $0.28 beating estimates by +$0.03. Pre-market: 22.00 -2.40 (-9.84%)

Pandora Media (P): Reported EPS of- $0.04 beating estimates by +$0.01. Pre-market: 14.72 +2.99 (25.49%)

Quicksilver (ZQK): Reported EPS of -$0.16 missing estimates by -$0.09.

Skullcandy (SKUL): Reported EPS of -$0.47 missing estimates by -$0.01. Pre-market: 5.48 -1.24 (-18.45%)

Thor Industries (THO): Reported EPS of $0.37 missing estimates by -$0.01.

Markets: 
Futures at 8:02: Dow +0.27%. S&P +0.45%. Nasdaq +0.72%. Crude -0.55% to $91.06. Gold +0.08% to $1576.30.

Europe: London +0.59%. Paris +1.33%. Frankfurt +0.76%. 

Asia: Japan +2.64% to 12284. Hong Kong +1.41% to 23092. China -0.24% to 2319. India +1.39% to 19680.