MORNING COFFEE

Google to Make Ipad Competitor. Google (GOOG) and Verizon (VZ) are working together on a tablet computer to compete against Apple’s (AAPL) iPad. Reports say the device will run Google’s successful Anroid system.

Morgan Stanley Investigated By Feds. Reports say that Federal prosecutors are investigating Morgan Stanley (MS) for possibly misleading investors over mortgage derivatives. Morgan Stanley placed bets against the CDOs it designed, and officials are examining whether Morgan Stanley properly disclosed the role it played. This comes after Goldman Sachs (GS) faced similar charges.

E*Trade Lawsuit Moves Forward. A judge ruled that a class action lawsuit against E*Trade (ETFC) could move forward. The suit claims E*Trade committed securities fraud in the subprime mortgage market because it "knowingly and/or recklessly purchased high-risk loan pools and asset-backed securities with inadequate due diligence" while assuring investors they were safe.

Downgrades

Anadarko Petro (APC): Oppenheimer lowered their rating from Outperform to Perform.

Coverage Resumed

Intel (INTC): Stifel Nicolaus resumed coverage with a Buy rating and target price of $30.00.

Texas Instruments (TXN): Stifel Nicolaus resumed coverage with a Buy rating and target price of $32.00.

Advanced Micro (AMD): Stifel Nicolaus resumed coverage with a Hold.

Coverage Reiterated/Price Target Changed

Church & Dwight (CHD): Oppenheimer reiterated their Outperform rating and raised their target price from $70.00 to $75.00.

Electronic Arts (ERTS): Wedbush reiterated their Outperform rating and raised their target price from $23.00 to $24.00.

Earning Reports

Electronic Arts (ERTS): Reported Q4 EPS of $0.07 Beating estimates by +0.02 on revenue of $850 million.

Walt Disney (DIS): Report Q2 EPS of $0.48 beating estimates by +$0.02 on revenue of $8.58 billion. 

·         Futures: Dow +0.2%. S&P +0.3%. Nasdaq 0.0. Crude -0.5% to $75.99. Gold +1.7% to $1240.50.

·         Asia: Japan -0.2% to 10394. Hong Kong +0.3% to 20212. China +0.3% to 2656. India +0.3% to 17196.

·         Europe: London -0.3%. Paris +0.3%. Frankfurt +1.2%.