MORNING COFFEE

PC Makers Looking at Windows 8. A report from Digitimes says that PC makers are looking at Microsoft Windows 8 (MSFT) to help boost sales of high-end tablets after receiving lukewarm sales results using the Android operating system. The repot says Dell (DELL), H-P (HPQ) and Acer are focusing their R&D resources on Windows 8 products.

Upgrades

US Cellular (USM): National Securities raised their rating from Sell to Neutral.

Coach (COH): Lazard Capital raised their rating from Neutral to Buy. Pre-market: 75.99 +0.89 (1.19%)

Salesforce.com (CRM):  Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $145.00 to $185.00. Pre-market: 160.85 +1.91 (1.20%)

Downgrades

JDS Uniphase (JDSU): Raymond James lowered their rating from Strong Buy to Outperform and placed a target price of $15.00 on the company. Pre-market: 11.55 -0.49 (-4.07%)

Green Mountain Coffee Rosters (GMCR): Sun Trust lowered their rating from Buy to Neutral.

Coverage Initiated

Cisco Systems (CSCO): Caris initiated coverage with a Buy rating and target price of $24.00. Pre-market: 19.88 +0.04 (0.20%)

Kroger  Co (KR): Scotia Capital initiated coverage with an Outperform rating and target price of $28.00.

Charles Schwab (SCHW): BGB Securities initiated coverage with a Sell rating and target price of $11.00.

E*Trade (ETFC): BGB Securities initiated coverage with a Sell rating and target price of $8.50.

TD Ameritrade (AMTD): BGB Securities initiated coverage with a Sell rating and target price of $15.50.

Coverage Reiterated/Price Target Changed

CVS Caremark (CVS): Mizuho reiterated their Buy rating and raised their target price from $48.00 to $50.00.

Earning Reports

Allstate (ALL): Reported EPS of $1.53 beating estimates by +$0.43.

Covance (CVD): Reported EPS of $0.68 beating estimates by +$0.08.

Expeditors International (EXPD): Reported EPS of $0.36 missing estimates by -$0.02.

JDS Uniphase (JDSU): Reported EPS $0.11 in-line with estimates. Pre-market: 11.55 -0.49 (-4.07%)

Murphy Oil (MUR): Reported EPS of $1.49 beating estimates by +0.03.

Transocean (RIG): Reported EPS of $0.12 missing estimates by -$0.22.

Triumph Group (TGI): Reported EPS of $1.57 beating estimates by +0.26.

Visa (V): Reported EPS of $1.60 beating estimates by +0.10.

Airgas (ARG): Reported EPS of $1.11 beating estimates by +0.05.

Cablevision (CVC): Reported EPS of $0.21 beating estimates by +0.01.

Cardinal Health (CAH): Reported EPS of $0.94 beating estimates by +0.06.

General Motors (GM): Reported EPS of $0.93 beating estimates by +0.08.

MGM Resorts (MGM): Reported EPS of -$0.44 missing estimates by -$0.29.

Orbitz (OWW): Reported EPS of -$0.06 beating estimates by +0.01.

Sara Lee (SLE): Reported EPS of $0.20 missing estimates by -$0.05.

Sealed Air (SEE): Reported EPS of $0.18 missing estimates by -$0.04.

Viacom (VIAB): Reported EPS of $0.98 beating estimates by +$0.08.

Xylem (XYL): Reported EPS of $0.18 missing estimates by -$0.04.

Markets: 
Futures at 9:06: Dow +0.10%. S&P +0.11%. Nasdaq +0.20%. Crude -0.79% to $104.38. Gold -0.84% to $1640.00. 

Europe: London +0.41%. Paris +0.44%. Frankfurt +0.28%. 

Asia: Japan +0.31%. Hong Kong -0.28% . China +0.07%. India -0.87%. 

ADP National Employment Report Misses Estimates.

According to the latest ADP employment report, U.S. nonfarm private payrolls increased 119,000 for the March to April period. Economists on Wall Street were looking for an increase of 170,000. Additionally, the March numbers were revised downwards to 201,000 from 209,000.  Investors will be watching very closely at the government numbers due out on Friday.  Economists expect Nonfarm payrolls to come in at 162,000, Nonfarm private payrolls to come in at 167,000 and the unemployment rate to stay unchanged at 8.2%.

MORNING COFFEE

Eurozone Economy Getting Worse. 

The eurozone jobless rate rose to a new euro-era high of 10.9% from 10.8% in February. Greece and Spain had the highest unemployment at well over 20%. The manufacturing PMI figure for April fell to 45.9 from 47.7 in March.  A reading under 50 indicates contraction in the economy.

Upgrades

Con-way (CNW): Stephens raised their rating from Equal weight to Overweight and raised their target price from $35.00 to $41.00. Pre-market: 34.91 +2.15 (6.56%)

Genworth Financial (GNW): Bank of America/Merrill Lynch raised their rating from Underperform to Neutral. Pre-market: 6.50 +0.35 (5.69%)

Foster Wheeler AG (FWLT): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $30.00 on the company. Pre-market: 23.95 -0.04 (-0.17%)

Gap Stores (GSP): CLSA raised their rating from Buy to Outperform and raised their target price from $31.00 to $36.00.

Downgrades

Arch Coal (ACI): Howard Weil lowered their rating from Market Outperform to Market Perform and lowered their target price from $22.00 to $15.00. Pre-market: 9.23 +0.01 (0.11%)

Avon Products (AVP): Caris & Company lowered their rating from Above Average to Average. Pre-market: 19.60 -0.27 (-1.36%)

ConocoPhillips (COP): Bank of America/Merrill Lynch lowered their rating from Neutral to Underperform and placed a target price of $63.00 on the company. Pre-market: 55.78 -0.73 (-1.29%)

Coverage Initiated

Huntington Ingalls (HII): CRT Capital initiated coverage with a Buy rating and placed a target price of $51.00 on the company.

ConocoPhillips (COP): JP Morgan initiated coverage with an Overweight rating and placed a target price of $65.00 on the company. Pre-market: 55.78 -0.73 (-1.29%)

L-3 (LLL): CRT Capital initiated coverage with a Fair Value rating and placed a target price of $77.00 on the company.

Abercrombie & Fitch (ANF): Sterne Agee initiated coverage with a Neutral rating and target price of $57.00. Pre-market: 53.00 -0.02 (-0.04%)

General Dynamics (GD): CRT Capital initiated coverage with a Sell rating and placed a target price of $55.00 on the company. Pre-market: 67.10 -0.88 (-1.29%)

Lockheed Martin (LMT): CRT Capital initiated coverage with a Sell rating and placed a target price of $72.00 on the company.

Northrop Grumman (NOC): CRT Capital initiated coverage with a Sell rating and placed a target price of $50.00 on the company.

Coverage Reiterated/Price Target Changed 

Emerson (EMR): FBR Capital reiterated their Market Perform rating and lowered their target price from $54.00 to $51.00. Pre-market: 49.00 -0.18 (-0.37%)

Earning Reports

Arthur J. Gallagher (AJG): Reported EPS of $0.27 beating estimates by -$0.01.

Motorola Mobility (MMI): Reported EPS of -$0.03 missing estimates by -$0.06. Pre-market: 39.00 +0.24 (0.62%)

Nutrisystem (NTRI): Reported EPS of -$0.16 missing estimates by -$0.07. Pre-market: 11.52 +0.19 (1.68%)

WebMD Health (WWWW): Reported EPS of $0.35 beating estimates by +$0.04.

Clorox (CLX): Reported EPS of -$1.02 missing estimates by -$0.02.

Comcast (CMCSA): Reported EPS of $0.45 beating estimates by +$0.03.

CVS Caremark (CVS): Reported EPS of $0.65 beating estimates by +$0.02.

Mastercard (MA): Reported EPS of $5.36 beating estimates by +$0.09.

Time Warner (TWX): Reported EPS of $0.67 beating estimates by +$0.02.

Markets: 
Futures at 8:29: Dow -0.41%. S&P -0.47%. Nasdaq -0.51%. Crude -0.45% to $105.67. Gold -0.47% to $1654.80. 

Europe: London -0.90%. Paris +0.32%. Frankfurt -0.59%.

Asia: Japan +0.31%. Hong Kong +1.02%. China +1.76%. India -0.10%. 

MORNING COFFEE

U.S. to Issue Floating-rate Debt. Reports say that for the very first time ever the U.S. Treasury will issue floating-rate debt.   The debt offering could be tied to the federal funds rate, which is currently near zero and be offered in $20 billion blocks of three-year floating notes. The Treasury is expected to provide details about its plans tomorrow.

Upgrades

American Eagle Outfitters (AEO): Wedbush raised their rating from Neutral to Outperform and raised their target price from $14.00 to $22.00. Pre-market: 18.25 +0.24 (1.33%)

Abercrombie & Fitch (ANF): UBS raised their rating from Neutral to Buy and raised their target price from $51.00 to $66.00. Pre-market: 51.90 +1.73 (3.45%) 

Chubb Corp (CB): Bernstein raised their rating from Underperform to Market Perform and raised their target price from $58.00 to $71.00.

Travelers Cos (TRV): Bernstein raised their rating from Market Perform to Outperform and raised their target price from $52.00 to $62.00. Pre-market: 64.94 +0.62 (0.96%)

Downgrades

Plum Creek Timber (PCL): DA Davidson lowered their rating from Buy to Neutral and placed a target price of $45.00 on the company. Pre-market: 41.21 -0.83 (-1.97%)

Xilinx (XLNX): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $37.20 on the company.

Altera (ALTR): Macquarie lowered their rating from Outperform to Neutral and placed a target price of $36.40 on the company.

Costco (COST): Deutsche Bank lowered their rating from Buy to Hold and placed a target price of $89.00 on the company. Pre-market: 87.50 -0.68 (-0.77%)

Earning Reports

Herbalife (HLF): Reported EPS of $0.88 beating estimates by +$0.07. Pre-market: 69.97 -0.35 (-0.50%)

Jacobs Engineering (JEC): Reported EPS of $0.65 missing estimates by -$0.09. Pre-market: 42.25 -1.58 (-3.60%)

Archer-Daniels (ADM): Reported EPS of $0.78 beating estimates by +$0.18.

Automatic Data (ADP): Reported EPS of $0.92 beating estimates by +$0.01. Pre-market: 55.70 +0.08 (0.14%)

Avon Products (AVP): Reported EPS of $0.10 missing estimates by -$0.18. Pre-market: 21.00 -0.60 (-2.78%)

Biogen Idec (BIIB): Reported EPS of $1.40 missing estimates by -$0.09. Pre-market: 131.00 -3.01 (-2.25%)

BP (BP): Reported EPS of $1.56 beating estimates by +$0.29. Pre-market: 42.32 -1.09 (-2.51%)

Emerson (EMN): Reported EPS of $0.74 missing estimates by -$0.06. Pre-market: 53.97 0.00 (0.00%)

Marsh McLennan (MMC): Reported EPS of $0.63 beating estimates by +$0.02.

Office Depot (ODP): Reported EPS of $0.05 in-line with estimates. After Hours: 3.14 +0.10 (3.29%)

Pfizer (PFE): Reported EPS of $0.58 beating estimates by +$0.01. Pre-market: 22.66 -0.24 (-1.05%)

Sirius XM Radio (SIRI): Reported EPS of $0.02 beating estimates by +$0.01. Pre-market: 2.30 +0.05 (2.22%)

Teleflex (TFX): Reported EPS of $1.01 beating estimates by +$0.04.

Markets: 
Futures at 8:05: Dow +0.12%. S&P +0.08%. Nasdaq +0.14%. Crude -0.13% to $104.71. Gold +0.10% to $1665.80. 

Europe: London +0.40%. Paris -1.64%. Frankfurt -0.59%. 

Asia: Japan -1.78%. Hong Kong +1.70%. China -0.35%. India closed.