MORNING COFFEE

Citigroup’s shame.  Citigroup (C) confirmed Wednesday it priced a massive 5.4B share sale at $3.15, generating net proceeds of $17B. The Treasury, which was slated to sell $5B in stock concurrently, shelved its plans after pricing was lower than the $3.25/share it paid, extended the lock-up period on its 7.7B share stake to 90 days from 45, and said it expects to exit its stake over the coming 12 months. The low price and size of the offering is just another sign that management just wanted to exit TARP and it’s pay restrictions.  Shares --8.1% to $3.17 premarket.

BofA’s has a new boss.  Bank of America announced that Brain Moynihan, currently the head of retail operations will replace Ken Lewis as CEO at the end of the year.

Fed Keeps Interest Rates Unchanged.  The Federal Reserve Announce yesterday that they would keep interest rates unchanged at 0.00%-0.25%.  The Fed said that they would keep rates low for an extended period of time and that “Economic activity was picking up” and "Deterioration in the labor market is abating."  The market sold off on the news fearing interest rate hikes in the near future.

Earnings Before the Bell

FedEx (FDX) EPS 1.10, Estimates 1.06, Year ago EPS 1.58

General Mills (GIS) EPS 1.54, Estimates 1.54, Year ago EPS 1.36

Earnings After the Bell

Accenture (ACN) Estimates 0.65, Year ago EPS 0.74

Nike (NKE) Estimates 0.71, Year ago EPS 0.80

Oracle (ORCL) Estimates 0.36, Year ago EPS 0.34

Research In Motion (RIMM) Estimates 1.04, Year ago EPS 0.83

·    Futures: Dow -0.45% to 10343. S&P -0.6% to 1099. Nasdaq -0.6% to 1789.

·    Jan. crude -0.8% to $72.07. Feb. gold -1.3% to $1,121.

3 30-year Tsy +0.61% to 118-07. 10-year +0.36%. 5-year +0.24%. 2-year+0.12%.

   Asia: Nikkei -0.1% to 10163.8. Hang Seng -1.2% to 21348. Shanghai -2.3% to 3179. BSE -0.1% to 

1 16894.

·   Europe at midday: FTSE -0.9% to 5272. CAC -0.6% to 3854. DAX -0.7% to 5864.

   Euro -1.3% vs. dollar. Yen flat. Pound -1.3%. Loonie -0.7%.