Morning Coffee - Stock Market Report

MORNING COFFEE

2012-02-10T06:33:00.000-08:00

Google Markets First Product. Reports say that Google (GOOG) is working on a home entertainment system that wirelessly streams music. The device will be the company’s first consumer device marketed under the Google brand.

Upgrades

Sealed Air (SEE): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $19.00 to $26.00.

Downgrades

First Solar (FSLR): Collins Stewart lowered their rating from Buy to Hold and placed a target price of $40.00 on the company.

True Religion (TRLG): Brean Murray lowered their rating from Buy to Hold.

True Religion (TRLG): The Benchmark Company lowered their rating from Buy to Hold and lowered their target price from $43.00 to $38.00.

Sirius XM Radio (SIRI): Gabelli lowered their rating from Buy to Hold.

Electronic Arts (EA): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $18.00 on the company.

Coverage Initiated

Jacobs Engineering (JEC): Citigroup initiated coverage with a Neutral rating and target price of $52.00.

Earning Reports

Expedia (EXPE): Reported EPS of $0.58 beating estimates by +$0.03.

LinkIn (LNKD): Reported EPS of $0.12 beating estimates by +$0.05.

Markets:
Futures at 7:00: Dow -0.5%. S&P -0.7%. Nasdaq -0.6%. Crude -1.25%to $98.59. Gold -1% to $1723.70.

Europe: London -0.5%. Paris -1.3%. Frankfurt -1.2%.

Asia: Japan -0.6% to 8947. Hong Kong -1.1% to 20784. China +0.1% to 2352. India -0.5% to 17749.

MORNING COFFEE

2012-02-09T05:47:00.000-08:00

Chances of Greek Default Increase. After hours of meetings Greek politicians failed to agree on a austerity program and other needed reforms. One of the main sticking points was cuts to pensions. Greek finance minister Evangelos Venizelos will head to a Brussels summit today without the austerity measures needed to receive additional bailout funds. Additionally, the Greek unemployment rate hit a new record of 20.9% in November and December industrial production dropped 11.3%.

Downgrades

Amgen (AMGN): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 68.00 -0.06 (-0.09%)

Cisco Systems (CSCO): ISI Group lowered their rating from Buy to Hold and placed a target price of $22.00 on the company. Pre-market: 20.18 -0.25 (-1.22%)

Cisco Systems (CSCO): MKM Partners lowered their rating from Buy to Neutral. Pre-market: 20.18 -0.25 (-1.22%)

Diamond Foods (DMND): SunTrust lowered their rating from Buy to Neutral. Pre-market: 21.94 -14.72 (-40.15%)

DIRECTV (DTV): Macquarie lowered their rating from Overweight to Neutral and lowered their target price from $52.00 to $50.00. Pre-market: 44.30 -0.62 (-1.38%)

Joy Global (JOY): Jefferies lowered their rating from Buy to Hold and lowered their target price from $100.00 to $90.00.

Coverage Initiated

Apple (AAPL): Mizuho initiated coverage with a Buy rating and target price of $635.00. Pre-market: 479.57 +2.89 (0.61%)

Dell (DELL): Mizuho initiated coverage with a Buy rating and target price of $20.00.

Dollar Tree (DLTR): JP Morgan initiated coverage with an Overweight rating and target price of $100.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Needham reiterated their Buy rating and raised their target price from $540.00 to $620.00. Pre-market: 479.57 +2.89 (0.61%)

CVS Caremark (CVS): Mizuho reiterated their Buy rating and raised their target price from $45.00 to $48.00. Pre-market: 43.50 -0.07 (-0.16%)

Walt Disney (DIS): Hilliard Lyons reiterated their Long Term Buy rating and raised their target price from $50.00 to $52.00. Pre-market: 41.06 -0.21 (-0.51%)

Earning Reports

Groupon (GRPN): Reported EPS of -$0.02 missing estimates by -$0.05. Pre-market: 21.87 -2.71 (-11.03%)

News Corp (NWSA): Reported EPS of $0.39 beating estimates by +$0.05. Pre-market: 19.48 -0.14 (-0.71%)

Visa (V): Reported EPS of $1.49 beating estimates by +$0.04. Pre-market: 112.76 +4.41 (4.07%)

PepsiCo (PEP): Reported EPS of $1.15 beating estimates by +$0.03. Pre-market: 65.15 -1.59 (-2.38%)

Intl Flavors (IFF): Reported EPS of $0.74 beating estimates by +$0.01.

Markets:
Futures at 8:19: Dow +0.26%. S&P +0.16%. Nasdaq +0.14%. Crude +0.90% to $99.61. Gold +0.46% to $1738.90.

Europe: London +0.59%. Paris +0.97%. Frankfurt +1.19%.

Asia: Japan -0.15% to 9002. Hong Kong -0.04% to 21010. China +0.09% to 2350. India +0.70% to 17831.

MORNING COFFEE

2012-02-08T06:11:00.001-08:00

Foreclosures Cost Banks $72 Billion. The combined costs of problem mortgages and foreclosure abuse at five banks exceed a combined $72 billion according to Bloomberg analysis. BofA (BAC) took the largest hit at $41.8 billion. The other banks taking a majority of the hits included Ally Financial, Citigroup (C), JPMorgan (JPM), and Wells Fargo (WFC).

Upgrades

Yum! Bands (YUM): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $53.00 to $66.00.

Downgrades

Morgan Stanley (MS): Collins Stewart lowered their rating from Buy to Hold and placed a target price of $23.00 on the company. Pre-market: 65.38 +0.53 (0.82%)

Owens Corning (OC): Citigroup lowered their rating from Buy to Neutral and placed a target price of $38.00 on the company.

UBS (UBS): Deutsche Bank lowered their rating from Hold to Sell. Pre-market: 14.43 +0.16 (1.12%)

ING Group (ING): Goldmans Sachs lowered their rating from Buy to Neutral. Pre-market: 9.82 +0.08 (0.82%)

BP (BP): Societe Generale lowered their rating from Buy to Hold. Pre-market: 46.41 -0.19 (-0.41%)

Buffalo Wild Wings (BWLD): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 80.60 +10.41 (14.83%)

Coverage Initiated

Peet's Coffee (PEET): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $80.00.

J.M. Smucker (SJM): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $95.00.

Earning Reports

Walt Disney (DIS): Reported EPS of $0.80 beating estimates by +$0.09. Pre-market: 40.88 -0.10 (-0.24%)

CVS Caremark (CVS): Reported EPS of $0.89 in-line with estimates. Pre-market: 43.56 +0.48 (1.11%)

Cognizant Tech (CTSH): Reported EPS of $0.78 beating estimates by +$0.01. Pre-market: 70.30 -1.71 (-2.37%)

Elan (ELN): Reported EPS of -$0.23 missing estimates by -$0.25. Pre-market: 13.40 -0.27 (-1.98%)

Ingersoll-Rand (IR): Reported EPS of $0.76 beating estimates by +$0.09. Pre-market: 37.83 +0.27 (0.72%)

Level 3 (LVLT): Reported EPS of -$0.80 beating estimates by +$0.10. Pre-market: 20.10 +0.51 (2.60%)

Polo Ralph Lauren (RL): Reported EPS of $1.78 beating estimates by +$0.12. Pre-market: 170.02 +12.95 (8.24%)

Reynolds American (RAI): Reported EPS of $0.72 beating estimates by +$0.04.

Markets:
Futures at 8:01: Dow +0.16%. S&P +0.13%. Nasdaq +0.19%. Crude +1.20% to $99.58. Gold -0.08% at $1747.00.

Europe: London +0.08%. Paris +0.55%. Frankfurt +0.71%.

Asia: Japan +1.10% to 9016. Hong Kong +1.54% to 21018. China +2.43% to 2348. India +0.48% to 17707.

MORNING COFFEE

2012-02-07T06:32:00.000-08:00

Coca-Cola Looks To Double Revenue. At a sugar conference in Dubai Coca-Cola (KO) said that it aims to double net revenues to over $200B by 2020 from $100B in 2010. Coke sited the company’s long-term economic outlook, population growth will contribute to sales. The company said, it expects major contributions from the BRIC countries. Pre-market: 68.45 +0.42 (0.62%)

Upgrades

Advance Micro Devices (AMD): Longbow raised their rating from Neutral to Buy and placed a target price of $10.00 on the company. Pre-market: 6.97 +0.05 (0.72%)

Charles Schwab (SCHW): ISI Group raised their rating from Hold to Buy. Pre-market: 12.49 -0.21 (-1.65%)

Downgrades

Fossil (FOSL): Brean Murray lowered their rating from Buy to Hold. Pre-market: 98.30 -2.19 (-2.18%)

Urban Outfitters (URBN): Brean Murray lowered their rating from Hold to Sell and placed a target price of $23.00. Pre-market: 26.95 -0.53 (-1.93%)

Porsche (POAHY): HSBC Securities lowered their rating from Overweight to Neutral.

Walgreen (WAG): Citigroup lowered their rating from Neutral to Sell and lowered their target price from $35.00 to $28.00. Pre-market: 33.49 -0.79 (-2.30%)

Coverage Reiterated/Price Target Changed

Walt Disney (DIS): Wunderlich reiterated their Hold rating and raised their target price from $39.00 to $43.00. Pre-market: 40.79 +0.33 (0.82%)

Coinstar (CSTR): The Benchmark Company reiterated their Buy rating and raised their target price from $70.00 to $75.00. Pre-market: 60.33 +9.77 (19.32%)

Earning Reports

Coinstar (CSTR): Reported EPS of $1.00 beating estimates by +$0.36. Pre-market: 60.33 +9.77 (19.32%)

BP (BP): Reported EPS of $2.41 beating estimates by +$2.15. Pre-market: 46.23 -0.64 (-1.37%)

Church Dwight (CHD): Reported EPS of $0.53 beating estimates by +$0.02. Pre-market: 46.00 +0.76 (1.68%)

Coca-Cola (KO): Reported EPS of $0.79 beating estimates by +$0.01. Pre-market: 68.45 +0.42 (0.62%)

Emerson (EMR): Reported EPS of $0.50 missing estimates by -$0.01. Pre-market: 52.10 -1.27 (-2.38%)

GlaxoSmithKline (GSK): Reported EPS of $0.28 missing estimates by -$0.02. Pre-market: 44.25 -0.84 (-1.86%)

Toyota Motor (TM): Reported EPS of $25.81 beating estimates by +$10.16. Pre-market: 79.68 +1.97 (2.54%)

Markets:
Futures at 9:04: Dow -0.06%. S&P -0.19%. Nasdaq -0.18%. Crude -0.75% to $96.18. Gold -0.4% to $1717.60.

Europe: London -0.44%. Paris -0.26%. Frankfurt -0.74%.

Asia: Japan -0.13% to 8918. Hong Kong -0.05% to 20699. China -1.68% to 2292. India -0.48% to 17622.

MORNING COFFEE

2012-02-06T05:15:00.001-08:00

Foreclosure Deal With Banks Near. After leaving the negotiation table for four months California has returned to the table. Reports say that a $25 billion deal over foreclosure abuse by five banks is near complete. New York which was another hold-out state, said it could support the deal. State Attorney Generals have until today to decide whether they will sign on to the deal. The banks involved are Ally Financial, Bank of America (BAC), Citigroup (C), JP Morgan (JPM), and Wells Fargo (WFC). BAC Pre-market: 7.77 -0.07 (-0.89%), C Pre-market: 33.21 -0.33 (-0.98%), JPM Pre-market: 37.99 -0.29 (-0.76%), WFC Pre-market: 30.50 -0.13 (-0.42%)

Upgrades

Corning (GLW): Piper Jeffray raised their rating from Neutral to Overweight and raised their target price from $13.00 to $16.00. Pre-market: 13.77 +0.19 (1.40%)

Downgrades

Forward Air (FWRD): BB&T lowered their rating from Buy to Hold.

Comerica (CMA): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $35.00 to $30.00. Pre-market: 30.08 0.00 (0.00%)

Cracker Barrel Old Time Country Store (CBRL): KeyBanc lowered their rating from Buy to Hold. Pre-market: 54.37 -0.35 (-0.64%)

MGM Resorts International (MGM): Goldman Sachs lowered their rating from Buy to Neutral and maintained a target price of $14.50. Pre-market: 14.00 -0.37 (-2.57%)

Royal Dutch Shell (RDS.A): Credit Suisse lowered their rating from Outperform to Neutral. Pre-market: 71.47 -1.01 (-1.39%)

Coverage Reiterated/Price Target Changed

MasterCard (MA): FBR Capital reiterated their Outperform rating and raised their target price from $400.00 to $430.00. Pre-market: 389.97 -0.35 (-0.09%)

Panera Bread (PNRA): Oppenheimer reiterated their Outperform rating and raised their target price from $150.00 to $175.00.

Earning Reports

Hasbro (HAS): Reported EPS of $10.6 beating estimates by +$0.01. Pre-market: 35.00 -0.86 (-2.40%)

Humana (HUM): Reported EPS of $1.20 in-line with estimates. Pre-market: 87.00 -3.12 (-3.46%)

Markets:
Futures at 7:46: Dow -0.26%. S&P -0.29%. Nasdaq -0.27%. Crude -0.97% to $96.88. Gold -1.14% to $1722.20.

Europe: London -0.15%. Paris -0.75%. Frankfurt -0.20%.

Asia: Japan +1.10% to 8929.2. Hong Kong -0.23% to 20710. China +0.03% at 2331. India +0.6% to 17707.

MORNING COFFEE

2012-02-03T06:31:00.001-08:00

Senate Passes Ban On Insider Trading By Congress. Yesterday the Senate voted 96-3 to pass the Stop Trading On Congressional Knowledge Act, or Stock Act. The Act will ban Congress from trading shares based on insider information they obtained through Capitol Hill. The bill now goes to the House for a vote next week. Those who voted against the Act included Bingaman (D-NM), Burr (R-NC), Coburn (R-OK).

Upgrades

Urban Outfitters (UBRN): Janney Montgomery Scott raised their rating from Neutral to Buy and placed a target price of $31.00 on the company. Pre-market: 27.60 +1.16 (4.39%)

Eastman Chemical (EMN): Goldman Sachs raised their rating from Sell to Buy and placed a target price of $63.00 on the company. Pre-market: 53.98 +1.78 (3.41%)

National Oilwell (NOV): Global Hunter raised their rating from Accumulate to Buy and raised their target price from $78.00 to $90.00. Pre-market: 78.80 +1.72 (2.23%)

Downgrades

Merck & Co (MRK): MKM Partners lowered their rating from Buy to Neutral. Pre-market: 38.60 +0.16 (0.42%)

Merck & Co (MRK): Davenport lowered their rating from Buy to Neutral and placed a target price of $40.00 on the company. Pre-market: 38.60 +0.16 (0.42%)

Unilever (UN/UL): Societe Generale lowered their rating from Buy to Hold. UN Pre-market: 32.93 +0.08 (0.24%) UL Pre-market: 32.04 +0.19 (0.60%)

Wynn Resorts (WYNN): Lazard Capital lowered their rating from Buy to Neutral. Pre-market: 117.20 -3.58 (-2.96%)

Coverage Initiated

Dollar General (DG): JP Morgan initiated coverage with a Neutral rating and target price of $45.00.

Family Dollar (FDO): JP Morgan initiated coverage with an Overweight rating and target price of $68.00.

Earning Reports

Columbia Sportswear (COLM): Reported EPS of $1.08 beating estimates by +$0.01. Pre-market: 46.21 -1.69 (-3.53%)

Fiserv (FISV): Reported EPS of $1.27 in-line with estimates. Pre-market: 63.11 0.00 (0.00%)

Kirby Corp (KEX): Reported EPS of $1.02 beating estimates by +$0.02.

Clorox (CLX): Reported EPS of $0.79 beating estimates by +$0.10. Pre-market: 70.61 +1.88 (2.74%)

Estee Lauder (EL): Reported EPS of $1.01 in-line with estimates. Pre-market: 54.80 -4.05 (-6.88%)

Tyson Foods (TSN): Reported EPS of $0.42 beating estimates by +$0.08. Pre-market: 19.35 +0.73

(3.92%)

Weyerhaeuser (WY): Reported EPS of $0.14 beating estimates by +$0.07. Pre-market: 21.39 +1.25 (6.21%)

Markets:
Futures at 9:05: Dow +0.86%. S&P +0.97%. Nasdaq +1.00%. Crude +0.52% to $96.84. Gold -0.42% to $1752.40.

Europe: London +1.25%. Paris +0.83%. Frankfurt +1.44%.

Asia: Japan -0.51% to 8832. Hong Kong +0.08% to 20757. China +0.77% to 2330. India +0.99% to 17605.

MORNING COFFEE

2012-02-02T06:42:00.000-08:00

Auto Sales Jump. Sales of autos in the U.S. jumped another +11% in January to a four-year high of 14.18 million vehicles per year. Chrysler (FIATY) +44%, GM's (GM) -6.1%, Ford (F) +7.3%, Honda (HMC) +8.8%, Toyota (TM) +7.5%,

Google’s Mobile Search Doubles. Google's (GOOG) announced that their mobile search ads more than doubled in Dec. 2011 from the year-ago period. Google dominants the mobile ad market, which estimates say could reach $5.8 billion in sales this year, and $17.4 billion by 2015.

Upgrades

Big Lots (BIG): MKM Partners raised their rating from Neutral to Buy.

Dell (DELL): JP Morgan raised their rating from Underweight to Overweight and raised their target price from $17.50 to $21.00.

Downgrades

Northrop Grumman (NOC): Bank of America lowered their rating from Neutral to Underperform and lowered their target price from $65.00 to $56.00.

Coverage Initiated

Marvell (MRVL): Canaccord Genuity initiated coverage with a Buy rating and target price of $20.00.

Broadcom (BRCM): Canaccord Genuity initiated coverage with a Buy rating and target price of $45.00.

Coverage Reiterated/Price Target Changed

Coinstar (CSTR): Canaccord Genuity reiterated their Hold rating and raised their target price from $52.00 to $54.00.

Earning Reports

Dow Chemical (DOW): Reported EPS of $0.25 missing estimates by -$0.05.

Kellogg (K): Reported EPS of $0.64 beating estimates by +$0.01.

MasterCard (MA): Reported EPS of $4.03 beating estimates by +$0.10.

National Oilwell (NOV): Reported EPS of $1.37 beating estimates by +$0.07.

Old Dominion (ODFL): Reported EPS of $0.69 beating estimates by +$0.12.

Ryder Systems (R): Reported EPS of $0.97 in-line with estimates.

Markets:

Futures at 8:15: Dow -0.04% Nasdaq -0.04% S&P -0.04%. Crude -0.78% to $96.85. Gold +0.03% to $1750.05

Europe: London -0.1%. Paris +0.04%. Frankfurt +0.2%.

Asia: Japan +0.8%. Hong Kong +2%. China +2%. India +0.8%.

MORNING COFFEE

2012-02-01T06:23:00.000-08:00

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.

MORNING COFFEE

2012-01-31T06:44:00.000-08:00

Freddie Mac Bet Against Homeowners. According to a NPR-ProPublica report Freddie Mac's (FMCC) investment division placed billions of dollars of investments against homeowners who were trying to refinance their mortgages. The report bring up questions about a conflict of interest amid reports that Freddie Mac has been turning down refinancing requests in order to benefit its prop trades.

Upgrades

Nike (NKE): Argus raised their rating from Hold to Buy and placed a target price of $118.00 on the company.

Under Armour (UA): Needham raised their rating from Hold to Buy and placed a target price of $86.00 on the company.

Downgrades

Pep Boys (PBY): BB&T Capital Markets lowered their rating from Hold to Underweight.

Pep Boys (PBY): The Benchmark Company lowered their rating from Buy to Hold.

RadioShack (RSH): Caris lowered their rating from Average to Below Average.

RadioShack (RSH): Raymond James lowered their rating from Outperform to Underperform.

Monster Beverage Co (MNST): CLSA lowered their rating from Buy to Outperform and lowered their target price from $120.00 to $112.00.

Magna International (MGA): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $54.00 to $48.00.

Coverage Initiated

Zillow (Z): The Benchmark Company initiated coverage with a Buy rating and target price of $35.00.

BB&T Corp (BBT): Wunderlich initiated coverage with a Buy rating and target price of $34.00.

Earning Reports

Archer-Daniels (ADM): Reported EPS of $0.51 missing estimates by -$0.26.

Eli Lilly (LLY): Reported EPS of $0.87 beating estimates by +$0.07.

Mattel (MAT): Reported EPS of $1.07 beating estimates by +$0.06.

Pfizer (PFE): Reported EPS of $0.50 beating estimates by +$0.03.

U.S. Steel (X): Reported EPS of -$1.14 missing estimates by -$0.30.

UPS (UPS): Reported EPS of $1.28 beating estimates by +$0.03.

Markets:
Futures at 8:58: Dow +0.37%. S&P +0.49%. Nasdaq +0.49%. Crude +1.48% to $100.23 Gold +0.79% to $1744.40.

Europe: London +0.84%. Paris +1.80%. Frankfurt +1.36%.

Asia: Japan +0.11% to 8803. Hong Kong +1.14% to 20390. China +0.33% to 2,292.61. India +1.96% to 17194.

MORNING COFFEE

2012-01-30T06:18:00.001-08:00

U.S. Bank Exposure to GIIPS Exceeds $80B. According to a report in the New York Times five major banks have over $80 billion in exposure to EU GIIPS. The banks holding the GIIPS include Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JP Morgan (JPM), and Morgan Stanley (MS).

Upgrades

Saint Joe Co. (JOE): Raymond James raised their rating from Market Perform to Outperform. Pre-market: 16.50 -0.77 (-4.46%)

Citigroup (C): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $35.00 to $36.00. Pre-market: 30.51 -0.36 (-1.17%)

Microsoft (MSFT): Atlantic Securities raised their rating from Neutral to Overweight and raised their target price from $30.00 to $36.00. Pre-market: 29.01 -0.22 (-0.75%)

Downgrades

JP Morgan Chase (JPM): Goldman Sachs lowered their rating from Conviction Buy to Buy and lowered their target price from $42.00 to $41.00. Pre-market: 36.66 -0.55 (-1.48%)

Bank of America (BAC): Goldman Sachs lowered their rating from Buy to Neutral and placed a target price of $8.00 on the company. Pre-market: 7.13 -0.16 (-2.19%)

Kellogg Co (K): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $62.00 to $48.00. Pre-market: 49.03 -0.70 (-1.41%)

Proctor & Gamble (PG): UBS lowered their lowered their rating from Buy to Neutral and lowered their target price from $72.00 to $66.00. Pre-market: 63.82 -0.48 (-0.75%)

Proctor & Gamble (PG): BMO Capital lowered their lowered their rating from Overweight to Market Perform and placed a target price of $68.00 on the company. Pre-market: 63.82 -0.48 (-0.75%)

Coverage Reiterated/Price Target Changed

Proctor & Gamble (PG): Hilliard Lyons reiterated their Long-Term Buy rating and lowered their target price from $81.00 to $79.00. Pre-market: 63.82 -0.48 (-0.75%)

Earnings Reports

Koninklijke Philips Electronics (PHG): Reported EPS of -$0.17 missing estimates by $0.38. Pre-market: 19.84 -0.53 (-2.60%)

Wolverine (WWW): Reported EPS of $0.47 beating estimates by +$0.03.

Markets:
Futures at 8:45: Dow -0.63%. S&P -0.86%. Nasdaq -0.78%. Crude -0.70% to $98.88. Gold -0.47% to $1724.20.

Europe: London -1.07%. Paris -1.37%. Frankfurt -1.26%.

Asia: Japan -0.54% to 8793. Hong Kong -1.66% to 20160. China -1.47% to 2285. India -2.14% to 16863.

MORNING COFFEE

2012-01-20T07:18:00.001-08:00

Fed Questioning QE3. Reports indicate that the Fed policy makers want more insight into the direction of the economy and inflation before deciding on whether to go ahead with QE3. The FOMC is due to meet next week.

Upgrades

JDS Uniphase (JDSU): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $17.00 on the company.

Advance Auto Parts (AAP): Cleveland Research raised their rating from Neutral to Buy.

Downgrades

Intel (INTC): Kaufman Bros lowered their rating from Buy to Hold and raised their target price from $25.00 to $26.00.

Google (GOOG): BGC Financial lowered their rating from Buy to Hold and raised their target price from $650.00 to $625.00.

BlackRock (BLK): Citigroup lowered their rating from Buy to Hold.

Coverage Initiated

Dick’s Sporting Goods (DKS): Northland Securities initiated coverage with a Market Perform rating and placed a target price of $45.00 on the company.

Apple (AAPL): FBR Capital initiated coverage with an Outperform rating and placed a target price of $500.00 on the company.

Under Armour (UA): Northland Securities initiated coverage with a Market Perform rating and target price of $80.00.

Coverage Reiterated/Price Target Changed

Google (GOOG): The Benchmark Company reiterated their Hold rating and lowered their target price from $700.00 to $625.00.

Earning Reports

American Express (AXP): Reported EPS of $1.01 beating estimates by +$0.05.

Google (GOOG): Reported EPS of $9.50 missing estimates by -$0.95.

IBM (IBM): Reported EPS of $4.71 beating estimates by +$0.09.

Intel (INTC): Reported EPS of $0.68 beating estimates by +$0.04.

Microsoft (MSFT): Reported EPS of $0.78 beating estimates by +$0.02.

General Electric (GE): Reported EPS of $0.39 beating estimates by +$0.01.

Markets:
Futures at 9:05: Dow -0.15%. S&P -0.21%. Nasdaq -0.04%. Crude -0.64% to $99.75. Gold -0.11 to $1652.60.

Europe: London -0.04%. Paris -0.42%. Frankfurt -0.12%.

Asia: Japan +1.47% to 8766. Hong Kong +0.84% to 20110. China +1.0% to 2319. India +0.57% to 16739.

EARNING REPORTS

2012-01-19T13:24:00.000-08:00

Google (GOOG) Q4 EPS $9.50 vs. $10.49 est, Q4 Revenues $8.13B (ex-tac) vs. $8.4B est. After Hours: 578.80 -60.77 (-9.50%)

Intel (INTC) Q4 EPS $0.68 (non-gaap) vs. $0.61 est., Q4 Revs: $13.9B vs. $13.7B est. After Hours: 26.16 +0.53 (2.07%)

IBM (IBM) Q4 EPS $4.71 non-gaap vs $4.62 Est. Revs $29.5B vs $29.7B. After Hours: 184.34 +3.82 (2.12%)

American Express (AXP) Q4 EPS $1.01 vs $0.98 Est. Q4 Revenues $7.7B vs. $7.9B Est. After Hours: 50.35 -0.60 (-1.18%)

MORNING COFFEE

2012-01-19T06:10:00.001-08:00

Apple To Make Big Announcement. Apple will be hosting an event at the Guggenheim Museum in New York at 10:00am. Analysts are expecting Apple to make an announcement about school textbooks for the iPad. Reports say that former CEO Steve Jobs prior to his death was working to radically change the textbook market. His work was on ways to circumvent the state certification process for textbook sales by having Apple release textbooks for free on the iPad. He also reportedly told News Corp. chairman Rupert Murdoch that paper textbooks could be made obsolete by the iPad. Pre-market: 430.36 +1.25 (0.29%)

Tech Giants In Spotlight Today. Tech giants Google (GOOG), IBM (IBM), Intel (INTC), and Microsoft (MSFT) will be in the spotlight today as each company releases their earnings. Google is forecast to post a 19% climb in EPS to $10.45 on a 31% jump in revenue to $8.4B; IBM's estimates are EPS of $4.62 and $29.7B. Intel's expected to post EPS of $0.64 and $13.7B and Microsoft's EPS is expected to be fall by a penny to $0.76, with revenue rising to $21B. GOOG Pre-market: 637.25 +4.34 (0.69%), IBM Pre-market: 181.70 +0.63 (0.35%), INTC Pre-market: 25.52 +0.13 (0.51%), MSFT Pre-market: 28.26 +0.03 (0.11%)

Upgrades

Advance Auto Parts (AAP): Credit Suisse raised their rating from Neutral to Outperform and placed a target price of $80.00 on the company.

Downgrades

Douglas Dynamics (PLOW): Oppenheimer lowered their rating from Outperform to Perform.

Coverage Initiated

Phillip Morris International (PM): CLSA initiated coverage with an Outperform rating and target price of $86.00. Pre-market: 73.70 +0.44 (0.60%)

Zimmer Holdings (ZMH): Cowen initiated coverage with a Neutral rating.

Stryker (SYK): Cowen initiated coverage with an Outperform rating. Pre-market: 51.77 -0.40 (-0.77%)

Coverage Reiterated/Price Target Changed

Xilinx (XLNX): Mizuho reiterated their Neutral rating and raised their target price from $28.00 to $36.00. Pre-market: 36.96 +1.66 (4.70%)

Earning Reports

eBay (EBAY): Reported EPS of $0.60 beating estimates by +$0.03. Pre-market: 31.41 +1.07 (3.53%)

Xilinx (XLNX): Reported EPS of $0.41 beating estimates by +$0.04. Pre-market: 36.96 +1.66 (4.70%)

Bank of America (BAC): Reported EPS of $0.16 missing estimates by -$0.03. Pre-market: 7.20 +0.40 (5.96%)

BlackRock (BLK): Reported EPS of $3.06 beating estimates by +$0.04. Pre-market: 186.05 -1.75 (-0.93%)

Morgan Stanley (MS): Reported EPS of -$0.14 beating estimates by +$0.48. Pre-market: 18.62 +1.27 (7.32%)

Union Pacific (UNP): Reported EPS of $1.99 beating estimates by +$0.18. Pre-market: 113.71 +3.89 (3.54%)

United Health (UNH): Reported EPS of $1.17 beating estimates by +$0.14. Pre-market: 54.04 +0.10 (0.19%)

Markets:
Futures at 7:00: Dow +0.29%. S&P +0.45%. Nasdaq +0.61%. Crude +1.09% to $101.69. Gold +0.04% to $1660.50.

Europe: London +0.54%. Paris +1.72%. Frankfurt +0.83%.

Asia: Japan +1.04% to 8640. Hong Kong +1.30% to 19943. China +1.31% to 2296. India +1.17% to 16644.

MORNING COFFEE

2012-01-18T06:36:00.000-08:00

World Bank Cut Global Growth Forecast. The World Bank has sharply cut its global growth forecast for 2012. The cuts according to the World Bank reports are due to the eurozone crisis slowing down emerging economies. The World Bank now expects global growth of +2.5% down from the prior estimate of +3.6%. The eurozone’s growth got chopped to -0.3% vs. +1.8%, and the U.S. was cut to +2.2% vs. +2.9%.

Upgrades

Nestle (NSRGY): HSBC Securities raised their rating from Neutral to Overweight.

Cree (CREE): ThinkEquity raised their rating from Hold to Buy and placed a target price of $30.00 on the company.

Check Point Software (CHPK): Raymond James raised their rating from Market Perform to Outperform and placed a target price of $64.00 on the company.

Downgrades

BB&T Corp (BBT): Compass Point lowered their rating from Buy to Neutral.

Cree (CREE): Ticonderoga lowered their rating from Buy to Neutral.

Cree (CREE): Pacific Crest lowered their rating from Outperform to Sector Perform.

Chevron (CVX): Tudor Pickering lowered their rating from Accumulate to Hold.

Sketchers U.S.A (SKX): BB&T lowered their rating from Buy to Hold.

Tyson Foods (TSN): BMO Capital lowered their rating from Outperform to Market Perform and placed a target price of $22.00 on the company.

Textron (TXT): JP Morgan lowered their rating from Overweight to Neutral and placed a target price of $21.00 on the company.

Coverage Initiated

Old Dominion Freight (ODFL): Sun Trust initiated coverage with a Neutral rating.

Earning Reports

Cree (CREE): Reported EPS of $0.25 missing estimates by -$0.01.

Bank of New York (BK): Reported EPS of $0.42 missing estimates by -$0.10.

Charles Schwab (SCHW): Reported EPS of $0.13 in-line with estimates.

Fastenal (FAST): Reported EPS of $0.30 in-line with estimates.

PNC (PNC): Reported EPS of $1.39 missing estimates by -$0.03.

Goldman Sachs (GS): Reported EPS of $1.84 beating estimates by +$0.62.

State Street (STT): Reported EPS of $0.93 missing estimates by -$0.01.

U.S. Bancorp (USB): Reported EPS of $0.64 beating estimates by +$0.01.

Markets:
Futures at 7:00: Dow +0.3%. S&P +0.4%. Nasdaq +0.45%. Crude +0.6% to $101.30. Gold 0.0% at $1655.10.

Europe: London +0.1%. Paris +0.2%. Frankfurt +0.5%.

Asia: Japan +1.0% to 8551. Hong Kong +0.3% to 19687. China -1.4% to 2266. India -0.1% to 16451.

MORNING COFFEE

2012-01-17T06:33:00.001-08:00

Citigroup Misses EPS Estimates. Citigroup (C) reported EPS of $0.38 missing estimates of $0.61. The bank says it’s the miss was due to lower investment banking income, an accounting charge and a decline in the value of its assets.

Upgrades

Medtronic (MDT): Wells Fargo raised their rating from Market Perform to Outperform and raised their target range from $36.00-$37.00 to $44.00-$45.00.

Tesla Motors (TSLA): Wunderlich raised their rating from Hold to Buy and placed a target price of $30.00 on the company.

Downgrades

Royal Dutch Shell (RDS.A): Howard Weil lowered their rating from Market Outperform to Market Perform.

ExxonMobil (XOM): Howard Weil lowered their rating from Market Outperform to Market Perform.

American Express (AXP): JP Morgan lowered their rating from Overweight to Neutral and placed a target price of $55.00 on the company.

Intel (INTC): JP Morgan lowered their rating from Overweight to Neutral and placed a target price of $25.00 on the company.

ResMed (RMD): Feltl & Co. lowered their rating from Strong Buy to Buy and lowered their target price from $35.00 to $33.15.

Jetblue Airways (JBLU): Dahlman Rose lowered their rating from Hold to Sell and placed a target price of $4.50 on the company.

Campbell Soup (CPB): JP Morgan lowered their rating from Neutral to Underweight and placed a target price of $30.00 on the company.

United Parcel Service (UPS): Jefferies lowered their rating from Buy to Hold and lowered their target price from $85.00 to $81.00.

Coverage Initiated

Microsoft (MSFT): Raymond James initiated coverage with an Outperform rating.

Earning Reports

Citigroup (C): Reported EPS of $0.38 missing estimates by -$0.23.

Forest Labs (FRX): Reported EPS of $1.04 beating estimates by +$0.03.

TD Ameritrade (AMTD): Reported EPS of $0.28 beating estimates by +$0.02.

Wells Fargo (WFC): Reported EPS of $0.73 in-line with estimates.

Markets:
Futures at 7:00: Dow +0.7%. S&P +0.7%. Nasdaq +0.8%. Crude +2% to $100.67. Gold +2% to $1663.20.

Europe: London +0.5%. Paris +1.3%. Frankfurt +1.7%.

Asia: Japan +1.1% to 8466.4. Hong Kong +3.2% to 19628. China +4.2% to 2298. India +1.7% to 16466.

MORNING COFFEE

2012-01-16T05:02:00.000-08:00

The markets will be closed on Monday in observance of Martin Luther King, Jr. Day.

MORNING COFFEE

2012-01-13T06:15:00.001-08:00

Bank of America Could Cut Its Size. Reports say that troubled Bank of America (BAC) has met with U.S. regulators and expressed it's willingness to withdraw from some parts of the country if its crippling financial problems continue to deteriorate. BofA also told regulators that it could sell of a separate class of shares tied to the performance of Merrill Lynch. Pre-market: 6.54 -0.25 (-3.68%)

Obama Wants Higher Debt Limit. President Obama has notified Congress with a one sentence note requesting a $1.2T increase to the debt ceiling. The U.S. debt stood at just $25M under its $15.194T borrowing limit on Tuesday. The debt has risen 60% in the four years since President Obama took over the White House. By election time in November the U.S. will be paying over $10B per week for interest on the debt.

Upgrades

Total S.A. ADS (TOT): JP Morgan raised their rating from Neutral to Outperform. Pre-market: 49.89 -0.28 (-0.56%)

Safeway (SWY): Jefferies raised their rating from Hold to Buy and raised their target price from $20.00 to $25.00. Pre-market: 21.10 +0.57 (2.78%)

Downgrades

MetLife (MET): Raymond James lowered their rating from Strong Buy to Market Perform. Pre-market: 35.28 -0.65 (-1.81%)

VMware (VMW): Citigroup lowered their rating from Neutral to Sell and lowered their target price from $87.00 to $80.00. Pre-market: 85.00 -2.88 (-3.28%)

Charles Schwab Corp. (SCHW): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $14.00-$15.00 to $11.00-$13.00. Pre-market: 12.14 -0.33 (-2.65%)

United Parcel Systems (UPS): JP Morgan lowered their rating from Overweight to Neutral and placed a target price of $82.00 on the company. Pre-market: 73.32 -1.42 (-1.90%)

Coverage Initiated

Ryder Systems (R): FBR Capital initiated coverage with an Outperform rating and target price of $65.00.

Coverage Reiterated/Price Target Changed

Chevron (CVX): Oppenheimer reiterated their Outperform rating and raised their target price from $120.00 to $130.00. Pre-market: 104.74 -0.23 (-0.22%)

Earning Reports

JPMorgan Chase (JPM): Reported EPS of $0.90 missing estimates by -$0.02. Pre-market: 35.50 -1.35 (-3.66%)

Markets:
Futures at 8:47: Dow -0.08%. S&P -0.53%. Nasdaq -0.19%. Crude +0.12% at $99.25. Gold -0.39% to $1640.90.

Europe: London -0.33%. Paris +0.79%. Frankfurt +0.16%.

Asia: Japan +1.36% to 8500. Hong Kong +0.57% to 19204. China -1.34% to 2245. India +0.73% to 16155.

MORNING COFFEE

2012-01-12T06:45:00.001-08:00

Chevron Gives EPS Warning. Chevron (CVX) announced that the company expects its Q4 earnings to be "significantly below" Q3, due to its downstream business operating near breakeven. The company blamed the weakness on lower margins and refinery input volumes. Chevron is expected to report earnings on Jan. 27.

Upgrades

Cree (CREE): Kaufman Bros raised their rating from Sell to Hold and raised their target price from $19.00 to $24.00.

Ball Corp. (BLL): JP Morgan raised their rating from Neutral to Overweight and placed a target price of $42.00 on the company.

Downgrades

Taubman Centers (TCO): KeyBanc Capital Markets lowered their rating from Hold to Underweight and placed a target price of $57.00 on the company.

Juniper Networks (JNPR): Argus lowered their rating from Buy to Hold.

ConocoPhillips (COP): Jefferies lowered their rating from Buy to Hold and lowered their target price from $85.00 to $75.00.

Coverage Initiated

BlackRock (BLK): UBS initiated coverage with a Buy rating and target price of $218.00.

Earning Reports

Infosys (INFY): Reported EPS of $41.51 beating estimates by +$1.92.

Markets:
Futures at 8:48: Dow +0.06%. S&P +0.28%. Nasdaq +0.64%. Crude +0.73% to $101.61. Gold +0.98% to $1655.70.

Europe: London +0.01%. Paris +0.84%. Frankfurt +1.09%.

Asia: Japan -0.74% to 8385. Hong Kong -0.30% to 19095. China -0.05% to 2275. India -0.86% to 16037.