MORNING COFFEE

Auto Sales Increase. Nearly 1 million vehicles were sold in the U.S. last month, a 19.8% increase over the year-earlier period.  The number was slightly below analysts’ expectations. Ford (F): +24.7% to 167,542 vehicles, a fifth straight month of 20%+ increases. General Motors (GMGMQ): +6.4% to 183,997 vehicles. Chrysler (FIATY): +25% to 95,703 vehicles. Toyota (TM): +24.4% to 157,439 vehicles.

Avis wants Dollar Thrifty.  Avis Budget Group (CAR) announced yesterday that it intends to make a "substantially higher offer" for Dollar Thrifty (DTG) than the $41 per share offer that Hertz Global (HTZ) announced a week ago.

Time Square Arrest.  U.S. citizen Faisal Shahzad of Pakistani origins is due in a New York court today to face charges over the attempted car bombing in Times Square on May 1.  Shahzad was taken off a flight trying to leave the country.  Three other people were also taken off the flight.

Baker Hughes (BHI): Reported Q1 EPS of $0.41 Beating estimates by +$0.03 on revenue of $2.5 billion.

Merck (MRK): Reported Q1 EPS of $0.83 Beating estimates by +$0.08 on revenue of $11.4 billion. 

Teva Pharmaceutical Industries (TEVA): Reported Q1 EPS of $0.91 Beating estimates by +$0.02 on revenue of $3.7 billion.

·         Futures: Dow -0.4%. S&P -0.5%. Crude -1.3% to $85.04. Gold +0.3% to $1187.20.

·         Asia: Japan closed. Hong Kong -0.2% to 20763. China -1.2% to 2835. India -1.4% to 17137.

·         Europe: London -1.0%. Paris -1.4%. Frankfurt -0.8%.