MORNING COFFEE

Apple Under Antitrust Investigation By DOJ. The Justice Department is in the early stages of an antitrust inquiry into Apple (AAPL) and its role in the digital music market. Officials have spoken to  record labels and online music companies about selling music online. The allegations are that Apple used its dominance to persuade music labels to block Amazon (AMZN) from access to soon-to-be released music.

Qata’s Sovereign Wealth Funds Looking At Citigroup. Qatar's sovereign wealth fund has  expressed interest in buying part of the Treasury's 27% stake in Citigroup (C).

Upgrades

Lowe's (LOW): Longbow raised their rating from Neutral to Buy and placed a target price of $29.00 on the company.

Home Depot (HD): Longbow raised their rating from Neutral to Buy and placed a target price of $39.00 on the company.

Fortune Brands (FO): Longbow raised their rating from Neutral to Buy and placed a target price of $54.00 on the company.

Citigroup (C): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $4.78 on the company.

Downgrades

Waddell & Reed (WDR): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $42.00 to $32.00.

Dreamworks Animation (DWA): Jefferies lowered their rating from Buy to Hold and lowered their target price from $49.00 to $28.00.

Coverage Reiterated/Price Target Changed

BP (BP): Howard Weil reiterated their Market Perform rating and lowered their target price from $70.00 to $60.00.

AutoZone (AZO): Wedbush reiterated their Neutral rating and lowered their target price from $186.00 to $194.00.

Earning Reports

American Eagle (AEO): Reported Q1 EPS of $0.05 in-line with estimates on revenue of $659.5 million 

Toll Brothers (TOL): Reported FQ2 EPS of -$0.24 missing estimates by -$0.01 on revenue of $311 million.

TiVo (TIVO): Reported Q1 EPS of -$0.13 beating estimates by +$0.03 on revenue of $43.2 million.

·         Futures: Dow +0.6%. S&P +0.6%. Nasdaq +0.7%. Crude +2.7% to $70.58. Gold +1.2% to $1212.50.

·         Asia: Japan +0.7% to 9523. Hong Kong +1.1% to 19196. China +0.1% to 2626. India +2.3% to 16388.

·         Europe: London +1.7%. Paris +2.5%. Frankfurt +1.6%.