MORNING COFFEE

Microsoft’s Profits Fall.  For the first time in 20 years Microsoft (MSFT) reported a smaller quarterly profit than Apple (APPL).  The company reported EPS of $0.61 on revenue of $16.4 billion.  The surprise was that revenues from Windows fell -4.4% as consumers flock to tablet computers such as Apple’s iPad and other tablets that run Google’s (GOOG) Android operating systems. Microsoft said that PC shipments saw a -8% decline in the quarter, while Netbooks plunged -40%. Pre-market: 26.44 -0.27 (-1.01%)

Downgrades

Oshkosh Truck (OSK): The Benchmark Company lowered their rating from Buy to Hold and lowered their target price from $45.00 to $35.00.

Oshkosh Truck (OSK): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $47.00 to $34.00.

Ingram Micro (IM): Brean Murray lowered their rating from Buy to Hold.

Constellation Energy (CEG): Wunderlich lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Coinstar (CSTR): The Benchmark Company reiterated their Buy rating and raised their target price from $60.00 to $70.00.

Cerner (CERN): Auriga U.S.A reiterated their Buy rating and raised their target price from $121.00 to $130.00.

Cerner (CERN): FBR Capital reiterated their Outperform rating and raised their target price from $121.00 to $131.00.

Norfolk Southern (NSC): Longbow reiterated their Buy rating and raised their target price from $81.00 to $85.00.

Nabors Industries (NBR): FBR Capital reiterated their Market Perform rating and raised their target price from $30.00 to $36.00.

Varian Semi (VSEA): Needham reiterated their Buy rating and lowered their target price from $57.00 to $53.00

Earning Reports

Calpine (CPN): Reported Q1 EPS of -$0.61 missing estimates by  -$0.48.

Coinstar (CSTR): Reported Q1 EPS of $0.46 beating estimates by +$0.24 on revenue of $424 million, beating estimates by +$15 million. Pre-market: 56.65 +5.24 (10.19%)

Eastman Chemical (EMN): Reported Q1 EPS of $2.52 beating estimates by +$0.59 on revenue of $1.76 billion, beating estimates by $230 milion. After Hours: 110.50 +7.57 (7.35%)

Expedia (EXPE): Reported Q1 EPS of $0.25 missing estimates by -$0.01 on revenue of $822 million, beating estimates by +$27 million.

Microsoft (MSFT): Reported EPS of $0.61 beating estimates by +$0.05 on revenue of $16.4 billion, beating estimates by +$0.20 billion.

Newell Rubbermaid (NWL): Reported Q1 EPS of $0.30 beating estimates by +$0.02.

Varian Semiconductor (VSEA): Reported FQ2 EPS of $1.07 beating estimates by +$0.01 on revenue of $330 million, beating estimates by +$9 million.

Weyerhaeuser (WY): Reported Q1 EPS of $0.18 missing estimates by -$0.03 on revenue of $1.57 billion, missing estimates by -$0.09 billion.

·         Futures at 7:00: Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude -0.15% to $112.69. Gold +0.4% to $1537.20.

·         Europe: London closed. Paris -0.1%. Frankfurt +0.3%.

·         Asia: Japan +1.6% to 9850. Hong Kong -0.4% to 23721. China +0.9% to 2912. India -0.8% to 19136.