MORNING COFFEE

Facebook To File IPO. Reports say Facebook is expected to file a preliminary prospectus for a $5 billion IPO today. Facebook is expected to finalize their listing process by May.

California The Next Greece? Like Greece, reports indicate that California may run out of money in March. The state will need $3.3 billion for next month and the first two weeks of April.  The state may have to issue IOUs to creditors as it did in 2009 or delay payments and borrowing.

Upgrades

Seagate Tech (STX): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $35.00 on the company. Pre-market: 23.70 +2.56 (12.11%)

Archer Daniels Midland (ADM): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $32.00 to $35.00. Pre-Market: 29.10 +0.47 (1.64%)

Citigroup (C): Wells Fargo raised their rating from Market Perform to Outperform and raised their target ranged from $28-$30 to $35-$37. Pre-market: 31.15 +0.43 (1.40%)

Downgrades

Exxon Mobil (XOM): Argus lowered their rating from Buy to Hold. Pre-market: 84.00 +0.26 (0.31%)

Sanofi (SNY): Goldman Sachs lowered their rating from Neutral to Sell. Pre-market: 36.75 -0.38 (-1.02%)

Broadcom (BRCM): Auriga lowered their rating from Buy to Hold. Pre-market: 35.50 +1.15 (3.35%)

Wendy’s (WEN): Roth Capital lowered their rating from Buy to Neutral and placed a target price if $5.00 on the company. Pre-market: 4.76 +0.07 (1.49%)

Stryker (SYK): BMO Capital lowered their rating from Outperform to Market Perform and lowered their target price from $58.00 to $57.00. Pre-market: 55.35 -0.08 (-0.14%)

Coverage Reiterated/Price Target Changed

CVS Caremark (CVS): Mizuho reiterated their Buy rating and raised their target price from $43.00 to $45.00.

Earning Reports

AFLAC (AFL): Reported EPS of $1.48 missing estimates by -$0.04. Pre-market: 47.60 -0.63 (-1.31%)

Amazon.com (AMZN): Reported EPS of $0.38 beating estimates by +$0.21. Pre-market: 173.45 -20.99 (-10.80%)

Aetna (AET): Reported EPS of $0.97 beating estimates by +$0.01. Pre-market: 44.65 +0.95 (2.17%)

AOL (AOL): Reported EPS of $0.23 beating estimates by +$0.03. Pre-market: 17.19 +0.98 (6.05%)

Hershey Foods (HSY): Reported EPS of $0.70 in-line with estimates. Pre-market: 60.95 -0.13 (-0.21%)

Northrop Grumman (NOC): Reported EPS of $1.85 beating estimates by +$0.17.

Markets: 
Futures at 8:38: Dow +0.71%. S&P +0.63%. Nasdaq +0.44%. Crude +0.41% to $98.89. Gold +0.52% to $1749.50. 

Europe: London +1.27%. Paris +1.35%. Frankfurt +2.04%. 

Asia: Japan +0.08% to 8810. Hong Kong -0.28% to 20333. China -1.07% to 2268. India +0.6% to 17301.