MORNING COFFEE

Morgan Stanley’s $5.4 Billion Loss. Morgan Stanley (MS) has informed investors that its $8.8 billion real estate fund may lose nearly two-thirds of its value because of bad investments. The loss estimated at -$5.4 billion would be the largest in the history of private-equity real estate investing.

More Problems For Toyota. Toyota (TM) has stopped the sales of its Lexus GX 460 SUV after Consumer Reports labeled the SUV Do Not Buy, saying the vehicle was a "safety risk."

EU Wants Bank Levy. In a letter to the G-20, the European Union said it would work with G-20 members to introduce a "stability levy (tax) on the financial sector."

CSX (CSX): Reported Q1 EPS of $0.78 beating estimates by +$0.09 on revenue of $2.5 billion.

Intel (INTC): Reported Q1 EPS of $0.43 beating estimates by +$0.05 on revenue of $10.3 billion. The company also sees Q2 revenue above consensus.  

Upgrades

McDonald's (MCD): Janney Montgomery Scott raised their rating from Neutral to Buy.

Advance Auto (AAP): BB&T Capital Mkts raised their rating from Hold to Buy.

Downgrades

DIRECTV (DTV): Hudson Square Research lowered their rating from Buy to Hold.

Time Warner Cable (TWC): Hudson Square Research lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Infosys (INFY): Kaufman Bros reiterated their Buy rating and raised their target price from $67.00 to $72.00.

Intel (INTC): FBR Capital reiterated their Market Perform rating and raised their target price from $27.00 to $30.00.

Intel (INTC): Oppenheimer reiterated their Outperform rating and raised their target price from $28.00 to $30.00.

Intel (INTC): Kaufman Bros reiterated their Buy rating and raised their target price from $25.00 to $30.00.

·         Futures: Dow +0.2%. S&P +0.2%. Nasdaq +0.4%. Crude +0.9% to $84.79. Gold +0.5% to $1158.80.

·         Asia: Nikkei +0.4% to 11204.9. Hang Seng +0.1% to 22121. Shanghai +0.2% to 3166. BSE -0.2% to 17822.

·         Europe: London +0.5% to 5789. Paris +0.6% to 4055. Frankfurt +0.5% to 6261.