MORNING COFFEE

More Flexible Yuan. According to Chinese media reports China may adjust its exchange rate system next month, allowing the yuan a more flexible exchange rate.  A policy change next month could preempt the possibility the U.S. Treasury will label China a "currency manipulator" in a report due April 15.

Blockbuster Falls Again. Blockbuster (BBI) fell more than -10% again in trading yesterday, to close at just $0.25. The drop has followed Monday's announcement that it's not in compliance with NYSE listing requirements regarding minimum market value. Blockbuster, earlier this month the company said it may need to file for bankruptcy.

Obama Says Drill Offshore.  President Obama will propose approval of offshore oil and natural-gas exploration.  The proposal is a direct reversal of what President Obama said as a candidate.  During the elections he strongly opposed the development in a large swath of the eastern Gulf of Mexico.

Upgrades

WellPoint (WLP): BMO Capital Markets raised their rating from Market Perform to Outperform and placed a target price of $75.00 on the company.

Downgrades

Fresh Del Monte (FDP): Sun Trust Robinson Humphrey lowered their rating from But to Neutral.

Coverage Initiated

Cracker Barrel (CBRL): Stifel Nicolaus initiated coverage with a Buy rating and a target price of $55.00.

Helmerich & Payne (HP): Susquehanna Financial initiated coverage with a Positive rating.

CIT Group (CIT): Keefe Bruyette initiated coverage with a Market Perform.

           

·         Futures: Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude +0.6% to $82.86. Gold +0.3% to $1107.90.

·         Asia: Nikkei -0.1% to 11090. Hang Seng -0.6% to 21239. Shanghai -0.6% to 3109. BSE -0.3% to 17528.

·         Europe: London +0.2% to 5684. Paris flat at 3990. Frankfurt +0.2% to 6155.