MORNING COFFEE

Is Europe Sinking

Is Europe Sinking? In Spain today, Treasury Minister Cristobal Montoro said that because of the high risk premium, the country is effectively locked out of the markets. He added that the EU should bail out some of their banks which is contrary to what Prime Minister Mariano Rajoy has said publicly. Tomorrow could be a volatile time for Spain as they look to auction of €1B-€2B in bonds.

Also in the Eurozone, retail sale fell much worse than expected. April retail sales came in at -1% for the month and -2.5% on a yearly basis.  Economists had expected numbers of -0.1% and -1.1% respectively. The final PMI composite index fell to 46 from 46.7.

Upgrades

Comerica (CMA): Stifel Nicolaus raised their rating from Sell to Hold.

Mead Johnson Nutrition (MJN): Miller Tabak raised their rating from Neutral to Buy and placed a target price of $90.00 on the company. Pre-market: 79.74 +0.72 (0.91%)

Marvell Technology (MRVL): JMP Securities raised their rating from Underperform to Market Perform. Pre-market: 12.15 +0.13 (1.08%)

Downgrades

Navistar (NAV): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $56.00 to $31.00.

Coverage Initiated

SanDisk (SNDK): Pacific Crest initiated coverage with an Outperform rating and target price of $47.00. Pre-market: 31.95 +0.29 (0.92%)

Iron Mountain (IRM): Piper Jaffray initiated coverage with an Overweight rating and target price of $35.00.

Earning Reports

Dollar General (DG): Reported EPS of $0.63 beating estimates by +$0.04. Pre-market: 46.50 -1.99 (-4.10%)

JA Solar (JASO): Reported EPS of -$0.20 missing estimates by -$0.04. Pre-market: 0.930 +0.040 (4.49%)

Markets: 
Futures at 8:12: Dow +0.10%. S&P -0.02%. Nasdaq -0.38%. Crude +0.34% to $84.24. Gold +0.45% to $1621.30. 

Europe: London closed. Paris +1.01%. Frankfurt -0.49%. 

Asia: Japan +1.04%. Hong Kong +0.40%. China +0.15%. India +0.20%.