MORNING COFFEE

EU Unveils Rescue Fund. The EU revealed a huge €750B ($966 B) plan to save the Eurozone from a debt contagion crisis.  The plan includes €440B in loans from Eurozone nations, €60B from EU emergency funds, and €250B from the IMF. The money will be available to rescue Eurozone countries that become financially distressed. Additionally, the ECB will take the step of buying government bonds and the Federal Reserve has reopened a credit line to send dollars to Europe. The stock market futures are up big on the news.

Fannie Mae Sustainability Uncertain.  Fannie Mae (FNM) reported a net loss of $13.1 billion and requested another $8.5 billion from the government.  If the company receives the additional government funds, it would bring the total amount given by taxpayers to try to save the company to approximately $88 billion.  The company reported losses of -$2.29 per share and revenues fell 14% to $2.9 billion. The company said it expects housing defaults and serious delinquencies to increase further during 2010. The company also said there is uncertainty regarding future of their business after conservatorship is terminated.

Upgrades

Crocs (CROX): DA Davidson raised their rating from Hold to Buy and raised their target price from $10.00 to $15.00.

China Automotive (CAAS): Maxim Group raised their rating from Hold to Buy and placed a target price of $24.00 on the company.

China Automotive (CAAS): Merriman raised their rating from Hold to Buy.

Coverage Reiterated/Price Target Changed

Stanley Black & Decker (SWK): Deutsche Bank reiterated their Buy rating and raised their target price from $70.00 to $75.00.

Hansen Natural (HANS): Stifel Nicolaus reiterated their Buy rating and raised their target price from $43.00 to $45.00.

Limited (LTD): Jesup & Lamont reiterated their Buy rating and lowered their target price from $35.00 to $30.00.

Brocade (BRCD): Broadpoint AmTech reiterated their Buy rating and raised their target price from $7.50 to $8.25

Earning Reports

DISH Network (DISH): Reported Q1 EPS of $0.52 beating estimates by +$0.02 on revenue of $3.1 billion.

Dynegy (DYN): Reported Q1 EPS of $0.24 missing estimates by -$0.10 on revenue of $858 million.

Tyson Foods Inc. (TSN): Reports Q2 EPS of $0.42 beating estimates by +$0.08 on revenue of $6.92 billion.

Watson Pharmaceuticals (WPI): Reported Q1 EPS of $0.81 Beating estimates by +0.07 on revenue of $857 million. 

·         Futures: Dow +3.7%. S&P +4.3%. Nasdaq +4.3%. Crude +3.3% to $77.59. Gold -1.45% to $1192.90.

·         Asia: Japan +1.6% to 10530.7. Hong Kong +2.5% to 20427. China +0.4% to 2699. India +3.4% to 17331.

·         Europe: London +4.8%. Paris +8.6%. Frankfurt +4.4%.