MORNING COFFEE

World Markets Rise On Spanish Bailout. European markets and U.S. stock futures are higher after the EU agreed to provide Spain with $125 billion (€100B) in an attempt to prevent a banking collapse in the country.  The size of the bailout is larger than what economist had expected. The bailout comes just before the Greek June 17^th elections that may push Greece closer to exiting the Eurozone and cause contagion among EU’s most indebted countries. As a loan the bailout will add an additional €100B in debt to the country’s already strapped finances, leaving some to question the Spanish government’s solvency.  Additionally, there was no word if the funds will come from the European Stability Mechanism or the European Financial Stability Facility.

Upgrades

McDonalds (MCD): CLSA raised their rating from Outperform to Buy and raised their target price from $105.00 to $110.00. Pre-market: 88.85 +1.10 (1.25%)

Iron Mountain (IRM): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $42.00 on the company. Pre-market: 32.72 0.00 (0.00%)

Weyerhaeuser (WY): Goldman Sachs raised their rating from Buy to Conviction Buy and placed a target price of $25.00 on the company. Pre-market: 20.99 +0.54 (2.64%)

Time Warner (TWX): Bernstein raised their rating from Underperform to Market Perform and raised their target price from $36.00 to $37.00.

Gulfport Energy (GPOP): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $25.00 on the company.

EMC (EMC): Cantor Fitzgerald raised their rating from Hold to Buy.

Net App (NTAP): Cantor Fitzgerald raised their rating from Hold to Buy.

Downgrades

Walt Disney (DIS): Caris & Company lowered their rating from Buy to Above Average and placed a target price of $52.00 on the company. Pre-market: 46.34 +0.10 (0.22%)

Watson Pharmaceuticals (WPI): Piper Jaffray lowered their rating from Overweight to Neutral and lowered their target price from $85.00 to $75.00.

Markets: 
Futures at 8:28: Dow +0.45%. S&P +0.54%. Nasdaq +0.55%. Crude +1.30% to $85.16. Gold +0.35% to $1597.20. 

Europe: London +0.66%. Paris +1.21%. Frankfurt +1.73%.

Asia: Japan +1.96%. Hong Kong +2.44%. China +1.07%. India -0.30%.