MORNING COFFEE

Germany Stops Naked Shorts. Regulators in Germany began banning naked short sales and naked credit-default swaps on certain Eurozone debt, as well as on a 10 financial stocks. The restrictions last until March 31. The rules do not affect trades of German companies placed on foreign exchanges, such as London and the US.

Credit Card Companies Give Warning.  Credit-card executives warned of lost business due to forthcoming limitations on debit-card fees proposed in new regulations.  Shares of card issuers sold off heavily Tuesday. American Express (AXP) -3.4%, Capital One (COF) -2.4%, Discover (DFS) -5.3%, MasterCard (MA) -3.8%, Visa (V) -6.2%.

Another Toyota Recall.  Toyota is recalling 11,500 cars in its Lexus LS line due to a computerized steering problem.  A company spokesperson said that the time frame for this latest recall had not yet been established.

Coverage Reiterated/Price Target Changed

Analog Devices (ADI): Broadpoint AmTech reiterated their Buy rating and raised their target price from $37.00 to $40.00.

Take-Two (TTWO): Kaufman Bros reiterated their Hold rating and raised their target price from $8.00 to $10.00.

Earning Reports

Hewlett-Packard (HPQ): Reported Q2 EPS of $1.09 beating estimates by +$0.04 on revenue of $30.8 billion.  The company also raised future guidance. 

Analog Devices (ADI): Reported Q2 EPS of $0.55 beating estimates by +$0.05 on revenue of $668 million.

Deere (DE): Reported FQ2 EPS of $1.58 beating estimates by +$0.49 on revenue of $6.5 billion. 

BJ's Wholesale Club (BJ): Reported Q1 EPS of $0.49 beating estimates by +$0.06 on revenue of $2.5 Billion.

·         Futures: Dow -0.3%, S&P -0.4%, Nasdaq -0.3% 10-yr +0.22%. Euro -0.15% vs. dollar. Crude -1.44% to $71.65. Gold -0.61% to $1207.20.

·          Asia: Japan -0.5%. Hong Kong -1.8%. China -0.3%. India -2.8%.

·         Europe: London -2.3%. Paris -2.9%. Frankfurt -2.7%.