MORNING COFFEE

Eurozone Sinking Deeper Into Recession. Eurozone factory activity continued to slow in April.  PMI fell to a preliminary 46 in April from 47.7 in March, missing economist estimates of 48.1. A reading below the 50 level that indicates contraction within the economy. Additionally, Spain’s economy contracted 0.4% in Q1 from the previous quarter and fell 0.5% from the year earlier period. Yields on Spanish 10-year bonds were slightly higher midday in Europe but below 6%. 

Upgrades

Suncor Energy (SU): BMO Capital raised their rating from Market Perform to Outperform and placed a target price of $39.00 on the company. Pre-market: 30.29 -0.91 (-2.92%)

BMC Software (BMC): Susquehanna raised their rating from Neutral to Positive.

Coverage Initiated

PPG Industries (PPG): JP Morgan initiated coverage with an Overweight rating and a target price of $120.00. Pre-market: 101.30 +0.01 (0.01%)

Downgrades

Forward Air (FWRD): Robert W. Baird lowered their rating from Outperform to Neutral and placed a target price of $40.00 on the company.

Progressive Corp. (PGR): Citigroup lowered their rating from Buy to Neutral and placed a target price of $22.00 on the company. Pre-market: 20.99 -0.38 (-1.78%)

Earning Reports

Check Point Software (CHKP): Reported EPS of $0.74 beating estimates by +$0.02. Pre-market: 63.50 -0.55 (-0.86%)

Eaton (ETN): Reported EPS of $0.92 beating estimates by +$0.02. Pre-market: 47.75 +0.31 (0.65%)

Hasbro (HAS): Reported EPS of $0.04 missing estimates by -$0.08.

SunTrust Bank (STI): Reported EPS of $0.46 beating estimates by +$0.12. Pre-market: 22.60 0.00 (0.00%)

Markets: 
Futures at 7:15: Dow -0.93%. S&P -1.12%. Nasdaq -0.87%. Crude -0.78% to $103.06. Gold -0.66% to $1632.00. 

Europe: London -1.84%. Paris -2.34%. Frankfurt -2.82%. 

Asia: Japan -0.20%. Hong Kong -1.84%. China -0.76%. India -1.60%. 

MORNING COFFEE

More Bank Investigations. The Consumer Financial Protection Bureau is currently investigating nine major banks over their overdraft protection programs and the reasoning for their possibly excessive overdraft charges. Some of the banks being investigated include Bank of America (BAC) JPMorgan (JPM), and Wells Fargo (WFC).

Downgrades

Bank of America (BAC): CLSA lowered their rating from Underperform to Sell. Pre-market: 8.74 -0.03 (-0.34%)

SanDisk (SNDK): CLSA lowered their rating from Outperform to Underperform and lowered their target price from $54.00 to $38.00. Pre-market: 35.77 -4.70 (-11.61%)

SanDisk (SNDK): Piper Jaffrey lowered their rating from Overweight to Neutral and lowered their target price from $51.00 to $35.00. Pre-market: 35.77 -4.70 (-11.61%)

Coverage Initiated

Nike (NKE): The Benchmark Company initiated coverage with a Buy rating and target price of $128.00.

Dycom Industries (DY): Stifel Nicolaus initiated coverage with a Buy rating and target price of $30.00.

Foot Locker (FL): The Benchmark Company initiated coverage with a Hold rating and target price of $35.00.

Earning Reports

Advanced Micro (AMD): Reported EPS of $0.12 beating estimates by +$0.03. Pre-market: 8.14 +0.17 (2.13%)

Capital One (COF): Reported EPS of $1.56 beating estimates by +$0.17.

E*Trade (ETFC): Reported EPS of $0.13 beating estimates by +$0.04. Pre-market: 10.10 +0.22 (2.28%)

Forward Air (FWRD): Reported EPS of $0.35 beating estimates by +$0.01.

Microsoft (MSFT): Reported EPS of $0.60 beating estimates by +$0.02. Pre-market: 31.98 +0.97 (3.13%)

General Electric (GE): Reported EPS of $0.34 beating estimates by +$0.01. Pre-market: 19.41 +0.27 (1.41%)

Honeywell (HON): Reported EPS of $1.04 beating estimates by +$0.05. Pre-market: 59.50 +1.50 (2.59%)

Kimberly-Clark (KMB): Reported EPS of $1.24 beating estimates by +$0.07. Pre-market: 76.75 +1.48 (1.97%)

McDonalds (MCD): Reported EPS of $1.23 in-line with estimates. Pre-market: 96.90 +1.62 (1.70%)

Schlumberger (SLB): Reported EPS of $0.98 in-line with estimates. Pre-market: 72.36 +2.56 (3.67%)

Under Armour (UA): Reported EPS of $0.28 beating estimates by +$0.02. Pre-market: 97.00 +0.50 (0.52%)

Markets: 
Futures at 7:34: Dow +0.38%. S&P +0.55%. Nasdaq +0.53%. Crude +0.97% to $103.26. Gold +0.38% to $1647.60. 

Europe: London +0.35%. Paris +0.34%. Frankfurt +0.88%. 

Asia: Japan -0.28%. Hong Kong +0.07%. China +1.19%. India -0.74%. 

MORNING COFFEE

Facebook To Go Public In May. In what may be called the most anticipated IPO offing of 2012 Facebook (FB) announced plans to carry out its IPO on May 17. The company aims to raise under $10 billion with a market cap of $100 billion. When Facebook acquired Instagram they valued the company at only $75 billion.

Bank of America Disappoints Wall Street. Troubled Bank of America's (BAC) disappointed Wall Street when the bank posted earnings that missed forecast.  The banks Q1 EPS came in at $0.03, missing by -$0.08 and revenue fell -10% to $22.5 billion also missing estimates. Pre-market: 9.19 +0.27 (3.03%)

Upgrades

Halliburton (HAL): Global Hunter raised their rating from Accumulate to Buy and raised their target price from $40.00 to $45.00. Pre-market: 34.55 +0.38 (1.11%)

Ebay (EBAY): The Benchmark Company raised their rating from Hold to Buy and raised their target price from $37.00 to $45.00. Pre-market: 39.25 +3.38 (9.42%)

Ebay (EBAY): Macquarie raised their rating from Neutral to Outperform and raised their target price from $36.00 to $45.00. Pre-market: 39.25 +3.38 (9.42%)

Ebay (EBAY): Piper Jaffrey raised their rating from Neutral to Overweight and raised their target price from $36.00 to $50.00. Pre-market: 39.25 +3.38 (9.42%)

Downgrades

Stanley Black & Decker (SWK): Raymond James lowered their rating from Strong Buy to Outperform and placed a target price of $85.00 on the company. Pre-market: 75.00 -3.49 (-4.45%)

YUM! Brands (YUM): CLSA lowered their rating from Buy to Outperform and lowered their target price from $80.00 to $76.00. Pre-market: 71.05 -1.89 (-2.59%)

Navistar International (NAV): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $48.00-$50.00 to $37.00 -$40.00. Pre-market: 35.98 -0.95 (-2.57%)

Coverage Initiated

Ryder Systems (R): Raymond James initiated coverage with a Strong Buy rating and target price of $62.00.

Earning Reports

American Express (AXP): Reported EPS of $1.07 beating estimates by +$0.07. Pre-market: 57.90 -0.14 (-0.24%) 

          

eBay (EBAY): Reported EPS of $0.55 beating estimates by +$0.04. Pre-market: 39.25 +3.38 (9.42%)

VMware (VMW): Reported EPS of $0.66 beating estimates by +$0.07. Pre-market: 113.50 +2.21 (1.99%)

YUM! Brands (YUM): Reported EPS of $0.76 beating estimates by +$0.03. Pre-market: 71.05 -1.89 (-2.59%)

Bank of America (BAC): Reported EPS of $0.03 missing estimates by -$0.08. Pre-market: 9.19 +0.27 (3.03%)

Baxter (BAX): Reported EPS of $1.01 beating estimates by +$0.01.

Boston Scientific (BSX): Reported EPS of $0.15 beating estimates by +$0.02. Pre-market: 5.85 +0.31 (5.60%)

Diamond Offshore (DO): Reported EPS of $1.33 beating estimates by +$0.33.

DuPont (DD): Reported EPS of $1.61 beating estimates by +$0.06. Pre-market: 53.25 -0.02 (-0.04%)

Morgan Stanley (MS): Reported EPS of -$0.05 missing estimates by -$0.48. Pre-market: 18.60 +0.94 (5.32%)

Nokia (NOK): Reported EPS of -$0.08 missing estimates by -$0.01. Pre-market: 3.84 -0.13 (-3.27%)

PPG Industries (PPG): Reported EPS of $1.81 beating estimates by +$0.05.

UnitedHealth (UNH): Reported EPS of $1.31 beating estimates by +$0.14. Pre-market: 57.02 -0.30 (-0.52%)

Verizon (VZ): Reported EPS of $0.59 beating estimates by +$0.01. Pre-market: 38.07 +0.41 (1.09%)

Markets: 
Futures at 8:40: Dow +0.05%. S&P -0.02%. Nasdaq +0.06%. Crude -0.27% to $102.40. Gold -0.31% to $1634.50. 

Europe: London +0.32%. Paris -0.79%. Frankfurt -0.27%. 

Asia: Japan -0.82%. Hong Kong +1.03%. China -0.11%. India +0.6%. 

MORNING COFFEE

Buffett Has Cancer. Warren Buffett the famous investor and CEO of Berkshire Hathaway, announced that he has been diagnosed with Stage I prostate cancer. In a statement he said he will continue to run Berkshire Hathaway (BRK.A/BRK.B) adding that it is "not remotely life-threatening or even debilitating in any meaningful way." BRK.B Pre-market: 79.91 -0.85 (-1.05%)

Upgrades

Deckers Outdoor (DECK): Sterne Agee raised their rating from Underperform to Neutral. Pre-market: 66.51 +1.51 (2.32%)

ING Group (ING): Citigroup raised their rating from Neutral to Buy. Pre-market: 7.24 -0.09 (-1.23%)

American International Group (AIG): William Blair raised their rating from Market Perform to Outperform. Pre-market: 33.25 +0.53 (1.62%)

Downgrades

IBM (IBM): Macquarie lowered their rating from Buy to Neutral. Pre-market: 202.77 -4.68 (-2.26%)

First Solar (FSLR): Wunderlich lowered their rating from Hold to Sell and lowered their target price from $38.00 to $14.00. Pre-market: 22.50 -0.46 (-2.00%)

Cree (CREE): ThinkEquity lowered their rating from Buy to Hold and placed a target price of $30.00 on the company. Pre-market: 29.40 -2.50 (-7.84%)

Earning Reports

Cree (CREE): Reported EPS of $0.20 missing estimates by -$0.01. Pre-market: 29.40 -2.50 (-7.84%)

CSX (CSX): Reported EPS of $0.43 beating estimates by +$0.05. Pre-market: 23.16 +0.72 (3.21%)

IBM (IBM): Reported EPS of $2.78 beating estimates by +$0.15. Pre-market: 202.55 -4.90 (-2.36%)

Intel (INTC): Reported EPS of $0.56 beating estimates by +$0.03. Pre-market: 27.57 -0.90 (-3.16%)

Yahoo! (YHOO): Reported EPS of $0.23 beating estimates by +$0.06. Pre-market: 15.59 +0.58 (3.86%)

BlackRock (BLK): Reported EPS of $3.16 beating estimates by +$0.14.

Halliburton (HAL): Reported EPS of $0.89 beating estimates by +$0.03. Pre-market: 33.24 +0.58 (1.78%)

Polaris Inds (PII): Reported EPS of $0.85 beating estimates by +$0.08. Pre-market: 76.95 +3.82 (5.22%)

Markets: 
Futures at 7:36: Dow -0.28%. S&P -0.36%. Nasdaq -0.33%. Crude -0.13% at $104.06. Gold -0.45% to $1643.60. 

Europe: London -0.40%. Paris -1.66%. Frankfurt -0.96%. 

Asia: Japan +2.14%. Hong Kong +1.06%. China +1.96%. India +0.20%.