MORNING COFFEE

DOJ Probes HSBC Clients.  U.S. clients of HSBC (HBC) are being probed by the Justice Department over overseas accounts they failed to disclose to the IRS. Prior to now, the  probes into offshore tax evasion had focused primarily on Switzerland and UBS (UBS) clients.

Fed Has Mixed Thoughts On Economy. Dallas Federal Reserve President Richard Fisher said he believes the U.S. economy will likely slow down in the second half of the year, hurt by slow private consumption. Fisher also said there may be increased political pressure for an expansion of monetary easing, but said there's not much more the Fed can do. On the opposite side of the coin is Richmond Fed President Jeffrey Lacker.  He expects private consumption and corporate capital investment to expand sufficiently keeping the U.S. economy in a sustained recovery this year and next.

Upgrades

Cinemark (CNK): Caris & Company raised their rating from Below Average to Average and raised their target price from $14.00 to $16.00.

Downgrades

Intersil (ISIL): RBC Capital Mkts lowered their rating from Outperform to Sector Perform and lowered their target price from $20.00 to $15.00.

Coverage Initiated         

Campbell Soup (CPB): KeyBanc Capital Markets initiated coverage with a Hold rating.

Coverage Reiterated/Price Target Changed

Nokia (NOK): RBC Capital Markets reiterated their Sector Perform rating and lowered their target price from $14.00 to $11.00.

Juniper Networks (JNPR): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $33.00 to $30.00.

eBay (EBAY): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $30.00 to $25.00.

Futures: Dow +1.1%. S&P +1.2%. Nasdaq +1.55%. Crude +1.2% to $73.03. Gold +0.3% to $1211.10.

Asia: Japan +0.8% to 9338. Hong Kong +1.2% to 20084. China +1.9% to 2409. India +1.0% to 17614.

Europe: London +2.2%. Paris +3.1%. Frankfurt +2.2%.