MORNING COFFEE

U.S. to Issue Floating-rate Debt. Reports say that for the very first time ever the U.S. Treasury will issue floating-rate debt.   The debt offering could be tied to the federal funds rate, which is currently near zero and be offered in $20 billion blocks of three-year floating notes. The Treasury is expected to provide details about its plans tomorrow.

Upgrades

American Eagle Outfitters (AEO): Wedbush raised their rating from Neutral to Outperform and raised their target price from $14.00 to $22.00. Pre-market: 18.25 +0.24 (1.33%)

Abercrombie & Fitch (ANF): UBS raised their rating from Neutral to Buy and raised their target price from $51.00 to $66.00. Pre-market: 51.90 +1.73 (3.45%) 

Chubb Corp (CB): Bernstein raised their rating from Underperform to Market Perform and raised their target price from $58.00 to $71.00.

Travelers Cos (TRV): Bernstein raised their rating from Market Perform to Outperform and raised their target price from $52.00 to $62.00. Pre-market: 64.94 +0.62 (0.96%)

Downgrades

Plum Creek Timber (PCL): DA Davidson lowered their rating from Buy to Neutral and placed a target price of $45.00 on the company. Pre-market: 41.21 -0.83 (-1.97%)

Xilinx (XLNX): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $37.20 on the company.

Altera (ALTR): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $36.40 on the company.

Costco (COST): Deutsche Bank lowered their rating from Buy to Hold and placed a target price of $89.00 on the company. Pre-market: 87.50 -0.68 (-0.77%)

Earning Reports

Herbalife (HLF): Reported EPS of $0.88 beating estimates by +$0.07. Pre-market: 69.97 -0.35 (-0.50%)

Jacobs Engineering (JEC): Reported EPS of $0.65 missing estimates by -$0.09. Pre-market: 42.25 -1.58 (-3.60%)

Archer-Daniels (ADM): Reported EPS of $0.78 beating estimates by +$0.18.

Automatic Data (ADP): Reported EPS of $0.92 beating estimates by +$0.01. Pre-market: 55.70 +0.08 (0.14%)

Avon Products (AVP): Reported EPS of $0.10 missing estimates by -$0.18. Pre-market: 21.00 -0.60 (-2.78%)

Biogen Idec (BIIB): Reported EPS of $1.40 missing estimates by -$0.09. Pre-market: 131.00 -3.01 (-2.25%)

BP (BP): Reported EPS of $1.56 beating estimates by +$0.29. Pre-market: 42.32 -1.09 (-2.51%)

Emerson (EMN): Reported EPS of $0.74 missing estimates by -$0.06. Pre-market: 53.97 0.00 (0.00%)

Marsh McLennan (MMC): Reported EPS of $0.63 beating estimates by +$0.02.

Office Depot (ODP): Reported EPS of $0.05 in-line with estimates. After Hours: 3.14 +0.10 (3.29%)

Pfizer (PFE): Reported EPS of $0.58 beating estimates by +$0.01. Pre-market: 22.66 -0.24 (-1.05%)

Sirius XM Radio (SIRI): Reported EPS of $0.02 beating estimates by +$0.01. Pre-market: 2.30 +0.05 (2.22%)

Teleflex (TFX): Reported EPS of $1.01 beating estimates by +$0.04.

Markets: 
Futures at 8:05: Dow +0.12%. S&P +0.08%. Nasdaq +0.14%. Crude -0.13% to $104.71. Gold +0.10% to $1665.80. 

Europe: London +0.40%. Paris -1.64%. Frankfurt -0.59%. 

Asia: Japan -1.78%. Hong Kong +1.70%. China -0.35%. India closed.