Chesapeake downgraded at JP Morgan...

Chesapeake Energy (CHK -4.8%) is downgraded to Neutral from Overweight at JPMorgan, skeptical about CHK meeting its projected price of $12K-$16K/acre for a joint venture sale of about 30% of its Utica shale in Ohio. Over the longer term, caution comes from uncertainty about CHK’s ability to fund its spending.

11 am update....

Stocks are mixed but looking much better as the morning moves along. 

Dow +5
Nas +1
S&P +3 to 1204


Banks are currently the strongest group as it looks like traders were surprised by Bank of America's earnings.  Not sure those earnings were as strong as they made it look...so we could see some profit taking later today in the group.


Right now BAC is up 0.34 to 6.37

Crocs gets pounded...

Crocs Inc (CROX). The shoemaker lowered its outlook for the first time in three years as it faces softening sales at its stores, amid a weak economy in Europe and shaky consumer confidence in the United States. The company expects July-September earnings of 31-33 cents a share, down from its previous forecast of 40 cents a share. It also projected revenue of $273.0-$275.0 million, compared with its prior outlook of $280 million.


CROX is down 10.19 to 16.46

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.


Alcoa Inc. (NYSE: AA) Started as Buy at Stifel Nicolaus.

Baker Hughes Inc. (NYSE: BHI) Started as Buy at Stern Agee.

Broadcom Corporation (NASDAQ: BRCM) Started as Buy at Societe Generale.

CareFusion Corporation (NYSE: CFN) Started as Market Perform at BMO.

Charter Communications Inc. (NASDAQ: CHTR) Started as Outperform with $60 target at Credit Suisse.

Citigroup Inc. (NYSE: C) cut estimates and cut target to $45 from $50 at Credit Suisse’ Maintained Sell at Argus.

Fidelity National Financial (NYSE: FNF) named Value stock of the day at Zacks.

First Solar Inc. (NASDAQ: FSLR) Cut to Hold at S&P Equity Research (late-Monday call).

The Goldman Sachs Group Inc. (NYSE: GS) Cut to Underperform as Bear of the Day at Zacks.

Halliburton Company (NYSE: HAL) Started as Buy at Stern Agee; Reiterated Buy at Canaccord Genuity.

Lulelemon Athletica Inc. (NASDAQ: LULU) Started as Neutral at Macquarie.

Macy’s Inc. (NYSE: M) Started as Outperform at Macquarie.

Progressive Corp. (NYSE: PGR) Cut to Hold at Argus.

QUALCOMM Incorporated (NASDAQ: QCOM) Started as Hold at Societe Generale.

UnitedHealth Group, Inc. (NYSE: UNH) named Bull of the Day at Zacks.

Urban Outfitters, Inc. (NASDAQ: URBN) Started as Underperform at Macquarie; Started as Outperform at FBR.

VMware Inc. (NYSE: VMW) Cut to Hold at Jefferies.

Whirlpool Corporation (NYSE: WHR) Cut to Sell at Goldman Sachs.

VMware gets mixed reaction...

VMware Inc (VMW). The business software maker on Monday posted quarterly profit ahead of market estimates, helped by growth in the Asia Pacific market, and it forecast fourth-quarter revenue above analysts' expectations. VMware forecast fourth-quarter revenue of $1.03 billion to $1.06 billion. Net income for the third quarter more than doubled to $177.5 million, or 41 cents a share, from $84.6 million, or 20 cents a share, a year ago.

VMW is currently up 0.05 to 89.55

Last night, the stock was down 10 at one point.

IBM sells off on earnings...

International Business Machines Corp. (IBM). The company's quarterly results failed to impress investors used to a stellar showing from Big Blue, adding to concerns about lackluster corporate IT spending. On Monday, it raised its full-year diluted earnings forecast to at least $13.35 per share, from its prior estimate of at least $13.25. IBM reported a third-quarter profit, excluding items, of $3.28 per share, up 15 percent year over year and above expectations of $3.22.


IBM is currently down 8.65 to 177.95

EMC earnings well received...so far...

EMC Corp (EMC). The corporate storage equipment maker reported a 28 percent jump in third- quarter profit as corporations invested in new equipment and hardware to expand their data centers. Net income rose to $606 million, or 27 cents per share, from $473 million, or 22 cents, a year earlier.


EMC is currently up 0.73 to 23.41

Bank of America reports earnings...

Bank of America Corp. (BAC). The bank reported higher third-quarter profits due to an accounting gain and a pretax gain on asset sales. Net income applicable to common shareholders was $5.9 billion, or 56 cents a share, compared with a loss of $7.6 billion, or 77 cents per share, in the same period a year earlier, when the bank took a $10.4 billion accounting charge.


BAC is currently up 0.30 to 6.33

Earnings today...

Earnings season hits the accelerator pedal this morning, with financials particularly in focus.


Goldman Sachs (GS) and Bank of America (BAC) will both be out with quarterly numbers, and investors will also get a look at the latest results from Dow components Coca-Cola (KO) and Johnson & Johnson (JNJ) as well as Harley-Davidson (HOG), State Street (STT), and UnitedHealth (UNH).

The after-the-bell calendar is similarly crowded, with Apple (AAPL), Intel (INTC), and Yahoo(YHOO) the highest profile names on the schedule.

Good Morning....

Stocks are opening under a little pressure this morning.  Overnight, France's AAA credit rating is still intact, but Moody's has warned the country of a possible negative outlook.


The agency says France needs to show commitment to financial reforms, and if not, it's possible the rating could be downgraded within two years.

This is causing the Euro to drop and is setting off a chain reaction of selling in Gold and Silver.

Stocks get pounded in last hour...

More volatility.  That's really all you can say.  No real reason to sell off, but that's traders did.

Dow -246
Nas -52
S&P -23 to 1200

Only good thing to say was that the S&P held up at 1200.

Lots of earnings due overnight, so maybe we'll find a reason to go up tomorrow.

Walgreens and Express Scripts may have a breakthrough...

Walgreen (WAG +3.5%) says it has offered terms to Express Scripts (ESRX -0.7%) that would allow it to continue serving the Defense Department's 6M-member Tricare program, despite a broader contract dispute between the two companies. Although the two sides remain "miles apart" in reaching a deal, a quiet arrangement may hint at a future breakthrough.

Earnings due on Tuesday morning...

Here are a few notable stocks due to report earnings tomorrow before the open:

United Healthcare (UNH) -0.03 to 47.19
Goldman Sachs (GS) -0.48 to 96.21
Checkpoint Software (CHKP) -0.60 to 58.29
Coca-Cola (KO) -0.49 to 67.35
Johnson and Johnson (JNJ) -0.66 to 64.06
Bank of America (BAC) -0.12 to 6.08
EMC Corp. (EMC) -0.52 to 22.57
Harley Davidson (HOG) -0.58 to 37.29

Earnings after the bell today...

Here is how a few notable stocks are trading ahead of their earnings to be released after the close today:

IBM -4.07 ot 186.53
VMWare (VMW) -3.62 to 89.38
Lincare Holdings (LNCR) -0.67 to 21.58
Steel Dynamics (STLD) -0.65 to 10.77

1 pm Update...

Stocks are selling off in the wake a many analyst downgrades this morning. 

Dow -196
Nas -49
S&P -19 to 1205

Weakness in banks, commodities, technology and metals are leading the market lower.

The Volatility Index (VIX) is staring to spike again.  It is currently +4.07 to 32.31

Remember the Vix had spiked up to 46 during the last selloff.

Haliburton beats estimates...but stock sells off...

Halliburton Co. (HAL). The oilfield services company reported a higher-than-expected third-quarter profit, as more drillers tapped its expertise in extracting oil and gas from U.S. shale rock. Net profit climbed to $683 million, or 74 cents per share, from $544 million, or 60 cents per share, a year earlier.


HAL is currently down 2.66 to 34.80

Stocks open lower...

Stocks are having a weak open here as it appears to be some disappointment that no positive news came out of Europe over the weekend.

Dow -86
Nas -17
S&P -9 to 1214

Main pockets of weakness are in Banks, Agriculture and Technology.  Gold is flat, Silver is down for the first time in several sessions.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Monday morning.

American Capital Agency (NASDAQ: AGNC) Cut to Market Perform at JMP Securities.

Apple Inc. (NASDAQ: AAPL) Reiterated Outperform with $500 target at Credit Suisse.

Archer Daniels Midland Company (NYSE: ADM) Started as Hold at Argus.

Cal-Maine Foods, Inc. (NASDAQ: CALM) named value stock of the day at Zacks.

Caterpillar Inc. (NYSE: CAT) Raised to Buy at Goldman Sachs.

Dollar Tree, Inc. (NASDAQ: DLTR) Cut to Equal-Weight at Barclays.

Family Dollar Stores, Inc. (NYSE: FDO) Raised to Overweight at Barclays.

Hewlett-Packard Co. (NYSE: HPQ) Reiterated Buy with $40 target at Argus.

Kirkland’s, Inc. (NASDAQ: KIRK) Cut to Underperform as bear of the day at Zacks.

Lincoln National Corporation (NYSE: LNC) Added to the U.S. 1 List at BofA/ML.

Monsanto Company (NYSE: MON) Reiterated Outperform as Bull of the Day at Zacks.

Navistar International Corp. (NYSE: NAV) Cut to Sell at Goldman Sachs.

Tiffany & Co. (NYSE: TIF) Started as Buy at Stern Agee.

Veeco Instruments Inc. (NASDAQ: VECO) Cut to Sell at Canaccord Genuity

Anadarko settles with BP...

In the oil industry, Anadarko Petroleum (APC) will pay BP (BP) $4 billion in a settlement over Gulf Oil spill cleanup costs. That's seen as less than half the amount it might have had to pay had the case gone to court. As part of the agreement, Anadarko will no longer pursue allegations of gross negligence against BP.

Kinder Morgan Buys El Paso...

Kinder Morgan Inc. (KMI). The company struck a $21 billion deal to buy rival El Paso Corp (EP), combining the two largest natural gas pipeline operators in North America in a huge bet on the fast-growing market for that fuel. The cash and stock deal announced on Sunday values El Paso at a 37 percent premium to its Friday market value.