MORNING COFFEE

Democrats To Offer GOP $20 Billion In Cuts. Reports say that Democrats are putting together a proposal to offer the Republicans another $20 billion in spending cuts for the current year.  The cuts would be in addition to the $10 billion in cuts already enacted and would be more than the White House and Senate Democrats had previously offered.  This is far less than what the Republican controlled House has already passed.  Their bill cuts $61 billion in spending.  The Federal government has been operating without a budget for nearly a year.  The than Democratically controlled House and Senate never took up the budget prior to the elections, due to fears that if they made cuts, it would hurt their chances in the election. The government will run out of money again April 8^th and even if a budget is agreed upon, an all new budget is due in October.

Upgrades

AT&T (T): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $30.00 to $34.00.

Leap Wireless (LEAP): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $14.00 to $19.00.

MetroPCS  (PCS): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $14.00 to $22.00.

Verizon (VZ): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $36.00 to $42.00.

Downgrades

Franklin Resources (BEN): Ticonderoga lowered their rating from Buy to Neutral.

L-3 Comms (LLL): Oppenheimer lowered their rating from Perform to Underperform and lowered their target price from $85.00 to $83.00.

Coverage Initiated         

Leap Wireless (LEAP): Collins Stewart initiated coverage with a Hold recommendation.

MetroPCS (PCS): Collins Stewart initiated coverage with a Buy recommendation and target price of $20.00.

·         Futures at 8:50: Dow +0.1%. S&P +0.1%. Nasdaq +0.15%. Crude -0.5% to $104.84. Gold -0.8% to $1415.30.

·         Europe: London +0.1%. Paris +0.2%. Frankfurt -0.2%.

·         Asia: Japan -0.6% to 9479. Hong Kong -0.4% to 23068. China+0.2% to 2984. India +0.7% to 18943.