MORNING COFFEE

Greece and Portugal Debt Rating Lowered. Ratings agency S&P cut Greece to junk status and lowered its long-term sovereign credit rating to BB+ with a negative outlook. S&P also lowered Portugal’s debt two notches to A- with a negative outlook on "amplified fiscal risks." European markets got hit hard yesterday, with the euro falling to a new one-year low against the dollar. There are concerns that Greece’s problems are just the first in the EU, with Portugal, Spain, and Italy next.  OECD Secretary General Angel Gurria said "It's not a question of the danger of contagion; contagion has already happened. This is like Ebola. When you realize you have it you have to cut your leg off in order to survive.” The Greek crisis is "contaminating all the spreads and distorting all the risk-assessment measures. It's threatening the stability of the financial system."

Upgrades

Cisco Systems (CSCO): RBC Capital Markets raised their rating from Outperform to Top Pick.

Tellabs (TLAB): JP Morgan raised their rating from Neutral to Overweight and raised their target price from $8.50 to $11.00.

Downgrades

Plum Creek (PCL): Credit Suisse lowered their rating from Neutral to Underperform and paced a target price of $33.00 on the company.

Motorola (MOT): RBC Capital Markets lowered their rating from Outperform to Sector Perform.

Ford Motor (F): Credit Suisse lowered their rating from Neutral to Underperform and placed a target price of $10.00 on the company.

Coverage Reiterated/Price Target Changed

Under Armour (UA): Wedbush reiterated their Neutral rating on the company and raised their target price from $31.00 to $36.00.

AFLAC (AFL): FBR Capital reiterated their Market Perform rating on the company and raised their target price from $51.00 to $53.00.

Earning Reports:

Dow Chemical (DOW): Reported Q1 EPS of $0.43 beating estimates by +$0.03 on revenue of $13.4 billion.

Medco Health Solutions (MHS): Reported Q1 EPS of $0.73 beating estimates by +$0.01 on revenue of $16.3 billion.

AFLAC (AFL): Reported Q1 EPS of $1.41 beating estimates by +$0.09 on revenue of $5.1 billion.

Buffalo Wild Wings (BWLD): Reported Q1 EPS of $0.58 beating estimates by +$0.01 on revenue of $152 million.

WellPoint Health Networks (WLP): Reported Q1 EPS of $1.95 beating estimates by +$0.28 on revenue of $14.9 billion. 

Robert Half International (RHI): Reported Q1 EPS of $0.05 Missing estimates by -$0.01 on revenue of $737 million.

·         Futures: Dow -0.1%. S&P -0.1%. Nasdaq 0.0. Crude -0.4% to $82.10. Gold +0.1% to $1163.80.

·         Asia: Japan -2.6% to 10925. Hong Kong -1.5% to 20949. China -0.3%to 2900. India -1.8% to 17380.

·         Europe: London -0.6%. Paris -2.5%. Frankfurt -1.4%.