MORNING COFFEE

Mr. Can You Spare Some Change. Problems continue at the two largest mortgage companies, even after sucking up billions in government aid to keep them afloat.  Fannie Mae (FNMA) and Freddie Mac (FMCC) both once again posted quarterly losses.  Fannie Mae Reported a Q4 loss of $2.1 billion and a full-year loss of $21.7 billion. Freddie Mac reported a Q4 loss of $1.7 billion and a full-year loss of $19.8 billion.  In addition to the losses Fannie Mae asked for an additional $2.6 billion in federal aid and Freddie Mac asked for another $500 million in federal aid.  Together Fannie and Freddie are expected to cost taxpayers as much as $259 billion.

Upgrades

Fifth Third (FITB): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $14.00 to $17.00.

Downgrades

Cinemark (CNK): Wedbush lowered their rating from Outperform to Neutral and placed a target price of $20.00 on the company.

Coverage Reiterated/Price Target Changed

Chipotle Mexican Grill (CMG): Argus reiterated their Buy rating on the company and raised their target price from $270.00 to $300.00.

Salesforce.com (CRM): Stifel Nicolaus reiterated their Buy rating on the company and raised their target price from $160.00 to $170.00.

Applied Materials (AMAT): Stifel Nicolaus reiterated their Buy rating and raised their target price from $160.00 to $170.00.

Potash (POT): RBC Capital Markets reiterated their Outperform rating on the company and raised their target price from $204.00 to $222.00.

Transocean (RIG): FBR Capital reiterated their Outperform rating on the company and raised their target price from $96.00 to $103.00.

Earning Reports

Applied Materials (AMAT): Reported FQ1 EPS of $0.36 beating estimates by +$0.03 on revenue of $2.7 billion, beating estimates by +$0.08 billion.

Autodesk (ADSK): Reported Q4 EPS of $0.35 beating estimates by +$0.01 on revenue of $528 million, beating estimates by +$13.2 million.

Deckers Outdoor (DECK): Reported Q4 EPS of $2.27 beating estimates by +$0.28 on revenue of $430.1 million, beating estimates by +$36.6 million.

Gap (GPS): Reported Q4 EPS of $0.60 beating estimates by +$0.03 on revenue of $4.36 billion, beating estimates by +$0.1 billion.

Salesforce.com (CRM): Reported Q4 EPS of $0.31 beating estimates by +$0.05 on revenue of $456 million, in-line with estimates.

·         Futures at 7:00: Dow +0.55%. S&P +0.6%. Nasdaq +0.7%. Crude +0.6% to $97.87. Gold -0.9% to $1403.20.

·         Europe: London +0.3%. Paris +1.4%. Frankfurt +0.5%.

·         Asia: Japan +0.7% to 10527. Hong Kong +1.8% to 23012. China 0.0%. India +0.4% to 17701.