MORNING COFFEE

Ford To Invest $1billion into Lincoln.  News reports say that Ford (F) will spend $1 billion on Lincoln and have seven all-new or significantly upgraded Lincolns that they will release over the next four years.  At one time Lincoln was the top selling luxury car sold in the U.S, but has fallen well behind other luxury brands.  Ford hopes to almost double Lincoln sales to 162,000 by 2015. Pre-market: 12.67 -0.10 (-0.78%)

Upgrades

Caterpillar (CAT): Raymond James raised their rating from Outperform to Strong Buy. Pre-market: 96.13 +0.18 (0.19%)

Coverage Initiated

Mosaic (MOS): UBS initiated coverage with a Buy rating and target price of $75.00. Pre-market: 60.50 +1.18 (1.99%)

Downgrades

Oshkosh Truck (OSK): The Benchmark Company lowered their rating from Hold to Sell and lowered their target price from $45.00 to $20.00. Pre-market: 25.65 -0.70 (-2.66%)

Almost Family (AFAM): Robert W. Baird lowered their rating from Neutral to Underperform and lowered their target price from $32.00 to $21.00. Pre-market: 26.36 -1.41 (-5.08%)

PF Chang’s (PFCB): Morgan Stanley lowered their rating from Overweight to Equal Weight.

Research In Motion (RIMM): Bernstein lowered their rating from Market Perform to Underperform and lowered their target price from $40.00 to $20.00. Pre-market: 27.25 -0.50 (-1.80%)

Dominion Resources (D): Deutsche Bank lowered their rating from Buy to Hold and lowered their target price from $48.50 to $46.50. Pre-market: 47.10 -0.56 (-1.17%)

·         Futures at 8:34: Dow -0.49%. S&P -0.45%. Nasdaq -0.48%. Crude -1.3% to $91.30. Gold -0.22 to $1535.80.

·         Europe: London -0.75%. Paris -1.26%. Frankfurt -1.10%.

·         Asia: Japan +0.03% to 9354. Hong Kong -0.44% to 21600. China -0.82% to 2623. India -2.04% to 17507.

MORNING COFFEE

Oracle to Sue Google.  Oracle (ORCL) has filed court papers saying that Google (GOOG) infringed on Oracle’s Java patents and copyrights with their Android software.  Oracle is seeking billions in damages.  Google responded by saying that Oracle’s method of calculating damages "is based on fundamental legal errors and improperly inflates their estimates,” and that their patents are not infringed.  Additionally, they said that Android users have a license to any patents.

Upgrades

Ensco (ESV): Goldman Sachs raised their rating from Not Rated to Neutral and placed a target price of $68.00 on the company. Pre-market: 51.60 +0.21 (0.41%)

Coverage Initiated

Medtronic (MDT): Morgan Keegan initiated coverage with a Market Perform rating and target price of $43.00.

Johnson & Johnson (JNJ): Morgan Keegan initiated coverage with a Market Perform rating and target price of $70.00. Pre-market: 66.66 +0.34 (0.51%)

Abbott Labs (ABT): Morgan Keegan initiated coverage with an Outperform rating and target price of $61.00. Pre-market: 51.70 +0.39 (0.76%)

ITT Corp (ITT): William Blair initiated coverage with a Market Perform rating.

Coverage Reiterated/Price Target Changed

Research In Motion (RIMM): Wedbush reiterated their Neutral rating and lowered their target price from $42.00 to $35.00. Pre-market: 29.61 -5.72 (-16.19%)

Research In Motion (RIMM): Canaccord Genuity reiterated their Hold rating and lowered their target price from $40.00 to $35.00.

Research In Motion (RIMM): Wunderlich reiterated their Hold rating and lowered their target price from $46.00 to $35.00.

Research In Motion (RIMM): Wunderlich reiterated their Hold rating and lowered their target price from $46.00 to $35.00.

Research In Motion (RIMM): ISI Group reiterated their Hold rating and lowered their target price from $50.00 to $40.00.

Transocean (RIG): Canaccord Genuity reiterated their Hold rating and lowered their target price from $85.00 to $82.00. Pre-market: 62.46 +0.71 (1.15%)

Earning Reports

Research In Motion (RIMM): Reported Q1 EPS of $1.33 beating estimates by +$0.01 on revenue of $4.9 billion, missing estimates by -$0.2 billion. Pre-market: 29.61 -5.72 (-16.19%)

·         Futures at 9:10: Dow +0.69%. S&P +0.86%. Nasdaq +0.73%. Crude -1.1% to $93.92. Gold +0.03% to $1530.20    .

·         Europe: London +0.36%. Paris +1.2%. Frankfurt +1.36%.

·         Asia: Japan -0.6% to 9351.4. Hong Kong -1.2% to 21695. China -0.8% to 2,643.65. India -0.6% to 17871.

MORNING COFFEE

Stocks Fall On Greece Debt Worries.  Stocks around the world fell yesterday on worries that Greece will default on their debt and cause a domino effect in the EU.  Greece is just one of the PIGS, which include Portugal, Ireland, Greece and Spain.  Greek Prime Minister George Papandreou is attempting to reshuffle his government due to several resignations and pass austerity plans to prevent a default.  Currently the credit default swaps are saying that there is a 78% chance that Greece will not pay its debts.  If this occurs, some of the other PIG nations could decide to take the same rout and default on their debt.  

Upgrades

Mettler-Toledo (MTD): Auriga raised their rating from Hold to Buy and placed a target price of $185.00 on the company.

Advanced Micro (AMD): FBR Capital their rating from Market Perform to Outperform and placed a target price of $185.00 on the company. Pre-market: 7.60 +0.10 (1.33%)

Downgrades

Intel (INTC): FBR Capital their rating from Outperform to Market Perform and lowered their target price from $26.00 to $25.00. Pre-market: 21.31 -0.11 (-0.51%)

General Mills (GIS): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $44.00 to $42.00. Pre-market: 37.15 -0.58 (-1.54%)

Coverage Initiated

MGM Resorts (MGM): FBR Capital initiated coverage with an Outperform rating and a target price of $17.00. Pre-market: 12.44 -0.02 (-0.16%)

Dicks Sporting Goods (DKS): UBS initiated coverage with a Buy rating and a target price of $44.00.

Bed Bath & Beyond (BBBY): UBS initiated coverage with a Neutral rating and a target price of $44.00.

Earning Reports

Pier 1 Imports (PIR): Reported Q1 EPS of $0.12 beating estimates by +$0.01 on revenue of $334.6 million, in-line. Pre-market: 11.25 +0.07 (0.63%)

Smithfield Foods (SFD): Reported FQ4 EPS of $0.85 beating estimates by +$0.03 on revenue of $3.12 billion, missing estimates by -$0.08 billion. Pre-market: 20.70 +0.31 (1.52%)

·         Futures at 7:54: Dow -0.33%. S&P -0.30%. Nasdaq -0.11%. Crude +0.7% to $9.84. Gold +0.01% to $1526.60.

·         Europe: London -1.6%. Paris -1.43%. Frankfurt -1.17%.

·         Asia: Japan -1.7% to 9411. Hong Kong -1.8% to 21953. India -0.8% to 17986.

MORNING COFFEE

The SEC Investigates Merrill Lynch.  Reported say that the SEC is taking a look at a $1.5 billion CDO created for a hedge fund manager.  The CDO was created for the hedge fund Magnetar and they are questioning whether Merrill told investors that Magnetar helped select the assets included in the CDO and then bet against those same assets. Additionally, the SEC is looking into whether Merrill also mispriced those assets in the CDO.

Upgrades

Western Digital (WDC): Standpoint Research raised their rating from Hold to Buy.

Coverage Initiated

Medtronic (MDT): Brean Murray initiated coverage with a Buy rating and target price of $44.00.

Johnson & Johnson (JNJ): Brean Murray initiated coverage with a Buy rating and target price of $77.00.

Abbott Labs (ABT): Brean Murray initiated coverage with a Hold rating.

St. Jude Medical (STJ): Brean Murray initiated coverage with a Hold rating.

Boston Scientific (BSX): Brean Murray initiated coverage with a Hold rating.

Baxter (BAX): Brean Murray initiated coverage with a Buy rating and target price of $68.00.

Kellogg (K): Jefferies initiated coverage with an Underperform rating and target price of $47.00.

Coverage Reiterated/Price Target Changed

Herbalife (HLF):  Argus reiterated their Buy rating and raised their target price from $61.00 to $63.00.

Scotts Miracle-Gro (SMG): RBC Capital Markets reiterated their Sector Perform rating and lowered their target price from $61.00 to $50.00.

Earning Reports

Korn Ferry (KFY): Reported EPS of $0.43 beating estimates by +$0.11.

·         Futures at 7:00: Dow -0.5%. S&P -0.5%. Nasdaq -0.5%. Crude -0.6% to $98.78. Gold -0.3% to $1520.10

·         Asia: Japan +0.3% to 9574. Hong Kong -0.7% to 22344. China -0.9% to 2705. India -1.0% to 18132.

·         Europe: London -0.2%. Paris -0.4%. Frankfurt -0.4%.

MORNING COFFEE

Nokia and Apple Settle Patent Dispute. Reports say that Nokia (NOK) and Apple (APPL) have reached an agreement to settle their two-year patent dispute.   The agreement has Apple paying Nokia a one-time undisclosed payment to Nokia and ongoing royalties. The companies will also withdraw their complaints to the U.S. International Trade Commission. AAPL Pre-market: 330.86 +4.26 (1.30%) NOK Pre-market: 6.32 +0.21 (3.44%)

Upgrades

Masco (MAS): Ticonderoga raised their rating from Sell to Neutral. Pre-market: 11.99 +0.16 (1.35%)

Downgrades

Juniper Networks (JNPR): RBC Capital Markets lowered their rating from Outperform to Sector Perform and lowered their target price from $46.00 to $37.00. Pre-market: 29.98 +0.07 (0.23%)

Sunpower (SPWRA): Kaufman Bros lowered their rating from Hold to Sell and lowered their target price from $23.25 to         $14.00. Pre-market: 20.72 -0.55 (-2.59%)

Cisco Systems (CSCO): RBC Capital lowered their rating from Outperform to Underperform and lowered their target price from $22.00 to $14.00. Pre-market: 15.14 +0.08 (0.53%)

Coverage Initiated

Morgan Stanley (MS): RBC Capital Markets initiated coverage with an Underperform rating and target price of $24.00. Pre-market: 23.50 +0.14 (0.60%)

Goldman Sachs (GS): RBC Capital Markets initiated coverage with an Underperform rating and target price of $132.00. Pre-market: 138.56 +1.03 (0.75%)

Credit Suisse (CS): RBC Capital Markets initiated coverage with a Sector Perform rating. Pre-market: 41.36 +0.18 (0.44%)

Barclays PLC (BCS): RBC Capital Markets initiated coverage with a Sector Perform rating. Pre-market: 17.52 +0.40 (2.34%)

Coverage Reiterated/Price Target Changed

National Oilwell Varco (NOV): Stifel Nicolaus reiterated their Buy rating and raised their target price from $90.00 to $95.00. Pre-market: 69.99 +0.91 (1.32%)

Earning Reports

Best Buy (BBY): Reported EPS of $0.35 beating estimates by +$0.02. Pre-market: 31.00 +2.18 (7.56%)

FactSet (FDS): Reported EPS of $0.92 missing estimates by -$0.02. Pre-market: 102.98 -1.31 (-1.26%)

·         Futures at 8:37: Dow +0.56%. S&P +1.08%. Nasdaq +0.84%. Crude -0.13% to $97.17. Gold +0.26% to $1519.40.

·         Europe: London +0.67%. Paris +1.29%. Frankfurt +1.76.

·         Asia: Japan +1.05% to 9548. Hong Kong -0.05% to 22496. China +1.10% to 2730. India +0.23% to 18309.

MORNING COFFEE

VF Corp to Buy Timberland. VF Corp. (VF) has offered to buy apparel company Timberland (TBL) for $43.00 per share.  The offer is a premium of 43% over the company’s Friday closing price of $29.99. VF Pre-market: 101.85 +10.05 (10.95%) TBL Pre-market: 42.76 +12.77 (42.58%)

Upgrades

Transocean (RIG): Argus raised their rating from Hold to Buy and placed a target price of $85.00. Pre-market: 63.55 +0.70 (1.11%)

MGM Reports (MGM): Bernstein raised their rating from Market Perform to Outperform and placed a target price of $12.50 on the company. Pre-market: 12.91 +0.36 (2.87%)

Ryder Systems (R): KeyBanc raised their rating from Hold to Buy and placed a target price of $63.00 on the company.

Downgrades

Molson Coors Brewing (TAP): Stifel Nicolaus lowered their rating from Buy to Hold. Pre-market: 43.91 -0.31 (-0.70%)

Nokia (NOK): Wunderlich lowered their rating from Buy to Hold. Pre-market: 6.26 -0.03 (-0.48%)

Coverage Reiterated/Price Target Changed

Texas Instruments (TXN): Robert W. Baird reiterated their Hold rating and lowered their target price from $35.00 to $34.00.

Broadcom (BRCM): Robert W. Baird reiterated their Hold rating and lowered their target price from $43.00 to $35.00. Pre-market: 33.15 +0.05 (0.15%)

·         Futures at 8:38: Dow +0.36%. S&P +0.37%. Nasdaq +0.17%. Crude -0.77% to $98.53. Gold +0.05% to $1529.90.

·         Europe: London -1.2%. Paris +0.3%. Frankfurt +0.1%.

·         Asia: Japan -0.7% to 9448. Hong Kong +0.39% to 22508. China -0.18% to 2701. India -0.01% to 18266.

MORNING COFFEE

Federal Reserve Now Largest Holder of U.S. Debt. At the end of the first quarter the Federal Reserve surpassed China as the largest holder of U.S. Treasuries.  When QEII ends at the end of this month the Fed will hold 16% of U.S. debt versus China’s 12%.  U.S. household make up the third largest investor in U.S. debt.  Some economists believe the Treasury yields will have to rise to attract foreign investors after the Fed stops purchasing Treasuries.

Upgrades

Noble Corp (NE): Morgan Keegan raised their rating from Market Perform to Outperform and placed a target price of $48.00 on the company. Pre-market: 39.95 +0.35 (0.88%)

Murphy Oil (MUR): Societe Generale raised their rating from Sell to Hold.

Under Armour (UA): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $80.00 on the company. Pre-market: 66.25 +0.98 (1.50%)

Downgrades

Cracker Barrel (CBRL): Morgan Keegan lowered their rating from Outperform to Market Perform.

Colgate (CL): CLSA lowered their rating from Underperform to Sell and placed a target price of $82.00 on the company.

Coverage Reiterated/Price Target Changed

J.M. Smucker (SJM): RBC Capital Markets reiterated their Outperform rating and raised their target price from $75.00 to $85.00

Research In Motion (RIMM): reiterated their Sector Perform rating and lowered their target price from $55.00 to $45.00. Pre-market: 37.34 -0.27 (-0.72%)

CarMax (KMX): Oppenheimer reiterated their Outperform rating and lowered their target price from $41.00 to $38.00

Earning Reports

National Semiconductor (NSM): Reported FQ4 EPS of $0.26 missing estimates by -$0.01 on revenue of $374 million, beating estimates by +$9 million. 

·         Futures at 7:00: Dow -0.3%. S&P -0.3%. Nasdaq -0.3%. Crude -0.9% to $100.98. Gold 0.0% at $1542.20.

·         Europe: London -0.3%. Paris -0.6%. Frankfurt -0.1%.

·         Asia: Japan +0.5% to 9514. Hong Kong -0.8% to 22420. China +0.1% to 2706. India -0.6% to 18269.