MORNING COFFEE

Facebook To File IPO. Reports say Facebook is expected to file a preliminary prospectus for a $5 billion IPO today. Facebook is expected to finalize their listing process by May.

California The Next Greece? Like Greece, reports indicate that California may run out of money in March. The state will need $3.3 billion for next month and the first two weeks of April.  The state may have to issue IOUs to creditors as it did in 2009 or delay payments and borrowing.

Upgrades

Seagate Tech (STX): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $35.00 on the company. Pre-market: 23.70 +2.56 (12.11%)

Archer Daniels Midland (ADM): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $32.00 to $35.00. Pre-Market: 29.10 +0.47 (1.64%)

Citigroup (C): Wells Fargo raised their rating from Market Perform to Outperform and raised their target ranged from $28-$30 to $35-$37. Pre-market: 31.15 +0.43 (1.40%)

Downgrades

Exxon Mobil (XOM): Argus lowered their rating from Buy to Hold. Pre-market: 84.00 +0.26 (0.31%)

Sanofi (SNY): Goldman Sachs lowered their rating from Neutral to Sell. Pre-market: 36.75 -0.38 (-1.02%)

Broadcom (BRCM): Auriga lowered their rating from Buy to Hold. Pre-market: 35.50 +1.15 (3.35%)

Wendy’s (WEN): Roth Capital lowered their rating from Buy to Neutral and placed a target price if $5.00 on the company. Pre-market: 4.76 +0.07 (1.49%)

Stryker (SYK): BMO Capital lowered their rating from Outperform to Market Perform and lowered their target price from $58.00 to $57.00. Pre-market: 55.35 -0.08 (-0.14%)

Coverage Reiterated/Price Target Changed

CVS Caremark (CVS): Mizuho reiterated their Buy rating and raised their target price from $43.00 to $45.00.

Earning Reports

AFLAC (AFL): Reported EPS of $1.48 missing estimates by -$0.04. Pre-market: 47.60 -0.63 (-1.31%)

Amazon.com (AMZN): Reported EPS of $0.38 beating estimates by +$0.21. Pre-market: 173.45 -20.99 (-10.80%)

Aetna (AET): Reported EPS of $0.97 beating estimates by +$0.01. Pre-market: 44.65 +0.95 (2.17%)

AOL (AOL): Reported EPS of $0.23 beating estimates by +$0.03. Pre-market: 17.19 +0.98 (6.05%)

Hershey Foods (HSY): Reported EPS of $0.70 in-line with estimates. Pre-market: 60.95 -0.13 (-0.21%)

Northrop Grumman (NOC): Reported EPS of $1.85 beating estimates by +$0.17.

Markets: 
Futures at 8:38: Dow +0.71%. S&P +0.63%. Nasdaq +0.44%. Crude +0.41% to $98.89. Gold +0.52% to $1749.50. 

Europe: London +1.27%. Paris +1.35%. Frankfurt +2.04%. 

Asia: Japan +0.08% to 8810. Hong Kong -0.28% to 20333. China -1.07% to 2268. India +0.6% to 17301. 

MORNING COFFEE

Freddie Mac Bet Against Homeowners. According to a NPR-ProPublica report  Freddie Mac's (FMCC) investment division placed billions of dollars of investments against homeowners who were trying to refinance their mortgages. The report bring up questions about a conflict of interest amid reports that Freddie Mac has been turning down refinancing requests in order to benefit its prop trades.

Upgrades

Nike (NKE): Argus raised their rating from Hold to Buy and placed a target price of $118.00 on the company.

Under Armour (UA): Needham raised their rating from Hold to Buy and placed a target price of $86.00 on the company.

Downgrades

Pep Boys (PBY): BB&T Capital Markets lowered their rating from Hold to Underweight.

Pep Boys (PBY): The Benchmark Company lowered their rating from Buy to Hold.

RadioShack (RSH): Caris lowered their rating from Average to Below Average.

RadioShack (RSH): Raymond James lowered their rating from Outperform to Underperform.

Monster Beverage Co (MNST): CLSA lowered their rating from  Buy to Outperform and lowered their target price from $120.00 to $112.00.

Magna International (MGA): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $54.00 to $48.00.

Coverage Initiated

Zillow (Z): The Benchmark Company initiated coverage with a Buy rating and target price of $35.00.

BB&T Corp (BBT): Wunderlich initiated coverage with a Buy rating and target price of $34.00.

Earning Reports

Archer-Daniels (ADM): Reported EPS of $0.51 missing estimates by -$0.26.

Eli Lilly (LLY): Reported EPS of $0.87 beating estimates by +$0.07.

Mattel (MAT): Reported EPS of $1.07 beating estimates by +$0.06.

Pfizer (PFE): Reported EPS of $0.50 beating estimates by +$0.03.

U.S. Steel (X): Reported EPS of -$1.14 missing estimates by -$0.30.

UPS (UPS): Reported EPS of $1.28 beating estimates by +$0.03.

Markets: 
Futures at 8:58: Dow +0.37%. S&P +0.49%. Nasdaq +0.49%. Crude +1.48% to $100.23 Gold +0.79% to $1744.40. 

Europe: London +0.84%. Paris +1.80%. Frankfurt +1.36%. 

Asia: Japan +0.11% to 8803. Hong Kong +1.14% to 20390. China +0.33% to 2,292.61. India +1.96% to 17194. 

MORNING COFFEE

U.S. Bank Exposure to GIIPS Exceeds $80B. According to a report in the New York Times five major banks have over $80 billion in exposure to EU GIIPS.  The banks holding the GIIPS include Bank of America (BAC), Citigroup (C), Goldman Sachs  (GS), JP Morgan (JPM), and Morgan Stanley (MS).

Upgrades

Saint Joe Co. (JOE): Raymond James raised their rating from Market Perform to Outperform. Pre-market: 16.50 -0.77 (-4.46%)

Citigroup (C): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $35.00 to $36.00. Pre-market: 30.51 -0.36 (-1.17%)

Microsoft (MSFT): Atlantic Securities raised their rating from Neutral to Overweight and raised their target price from $30.00 to $36.00. Pre-market: 29.01 -0.22 (-0.75%)

Downgrades

JP Morgan Chase (JPM): Goldman Sachs lowered their rating from Conviction Buy to Buy and lowered their target price from $42.00 to $41.00. Pre-market: 36.66 -0.55 (-1.48%)

Bank of America (BAC): Goldman Sachs lowered their rating from Buy to Neutral and placed a target price of $8.00 on the company. Pre-market: 7.13 -0.16 (-2.19%)

Kellogg Co (K): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $62.00 to $48.00. Pre-market: 49.03 -0.70 (-1.41%)

Proctor & Gamble (PG): UBS lowered their lowered their rating from Buy to Neutral and lowered their target price from $72.00 to $66.00. Pre-market: 63.82 -0.48 (-0.75%)

Proctor & Gamble (PG): BMO Capital lowered their lowered their rating from Overweight to Market Perform and placed a target price of $68.00 on the company. Pre-market: 63.82 -0.48 (-0.75%)

Coverage Reiterated/Price Target Changed

Proctor & Gamble (PG): Hilliard Lyons reiterated their Long-Term Buy rating and lowered their target price from $81.00 to $79.00. Pre-market: 63.82 -0.48 (-0.75%)

Earnings Reports

Koninklijke Philips Electronics (PHG): Reported EPS of -$0.17 missing estimates by $0.38. Pre-market: 19.84 -0.53 (-2.60%)

Wolverine (WWW): Reported EPS of $0.47 beating estimates by +$0.03.

Markets: 
Futures at 8:45: Dow -0.63%. S&P -0.86%. Nasdaq -0.78%. Crude -0.70% to $98.88. Gold -0.47% to $1724.20. 

Europe: London -1.07%. Paris -1.37%. Frankfurt -1.26%. 

Asia: Japan -0.54% to 8793. Hong Kong -1.66% to 20160. China -1.47% to 2285. India -2.14% to 16863.