MORNING COFFEE

Stock Get hammered. U.S. stocks had heavy losses yesterday, with the major indices all closing down at least -2%, which was the worst decline in three months. The sell-off followed heightened concerns about a possible European debt contagion.

Europe Fights Contagion. European countries are fighting to avoid a Greek debt contagion. Rumors are saying that Spain plans to ask for €280B ($363.5B) in aid. Ratings agencies Fitch and Moody's said yesterday that they're maintaining Spain's maximum triple-A rating with stable outlook, although S&P lowered their rating over a week ago.

Greek Workers Strike.  Millions of Greek workers are striking today, basically shutting down all airports, banks, courts, ferry operations, hospitals, public offices, rail, Schools and shops. Union officials have called on Greek citizens to protest the "harsh and antisocial measures" of the austerity package. There are reports of wide spread rioting.

Google To Sell Books. Google (GOOG) plans to start selling e-books sometime in the next two months through "Google Editions." Google hopes to differentiate itself by allowing users to read the books on a broad array of devices and to access the books through multiple websites.

Upgrades

Cabela's (CAB): Barrington Research raised their rating from Market Perform to Outperform and placed a target price of $25.00 on the company.

Downgrades

Double-Take Software (DBTK): MKM Partners lowered their rating from Buy to Neutral.

WebMD Health (WBMD): Canaccord Adams lowered their rating from Buy to Neutral.

InterMune (ITMN): Canaccord Adams lowered their rating from Buy to Neutral.

InterMune (ITMN): Oppenheimer lowered their rating from Outperfrom to Perform.

Coverage Reiterated/Price Target Changed 

Cablevision (CVC): Kaufman Bros reiterated their Buy rating and raised their target price from $27.00 to $32.00.

DIRECTV (DTV): Kaufman Bros reiterated their Buy rating and raised their target price from $40.00 to $43.00.

Emerson (EMR): FBR Capital reiterated their Market Perform rating and raised their target price from $52.00 to $55.00.

Earning Reports

Pulte Homes (PHM): Reported Q1 EPS of -$0.03 Beating estimates by +$0.19 on revenue of $1 billion. 

R.R. Donnelley & Sons Company (RRD): Reported Q1 EPS of $0.33 beating estimates by +$0.03 on revenue of $2.4 billion.

Time Warner (TWX): Reported Q1 EPS of $0.61 beating estimates by +$0.13 on revenue of $6.3 billion. 

Overstock.com (OSTK): Reported Q1 EPS of $0.16 beating estimates by +$0.23.

·         Futures: Dow -0.15%. S&P -0.1%. Nasdaq -0.4%. Crude -0.8% to $82.10. Gold +0.1% to $1170.30.

·          Asia: Japan closed. Hong Kong -2.1% to 20328. China +0.8% to 2857. India -0.3% to 17088.

·         Europe: London -0.2%. Paris +0.3%. Frankfurt -0.2%.