MORNING COFFEE

States To Get $26 Billion. 
Yesterday President Obama signed into law a $26 billion bailout plan that Democrats said will help cash-strapped state governments preserve the jobs of thousands of firefighters, police and teachers. Some political strategists believe that the bailout was an attempt to maintain union support going into the November elections. 

Disney Beats Estimates. 
Walt Disney (DIS) reported earnings after the close yesterday that beat estimates (see details below). An improvement in the advertising climate and a series of hit movies and sports events help their results. Theme parks continued to struggle due to the weak economy. 


Upgrades 
Inergy (NRGY): Wunderlich raised their rating from Hold to Buy and raised their target price from $40.00 to $46.00. 

Coverage Initiated 
Pinnacle Airlines (PNCL): Dahlman Rose initiated coverage with a Buy rating and target price of $8.00. 

SkyWest (SKYW): Dahlman Rose initiated coverage with a Hold rating. 

Dollar General (DG): RBC Capital Markets initiated coverage with a Outperform rating and target price of $35.00. 

Earning Reports 
Cree (CREE): Reported FQ4 EPS of $0.55 beating estimates by +$0.04 on revenue of $264 million. 

Disney (DIS): Reported Q2 EPS of $0.67 beating estimates by +$0.09 on revenue of $10 billion. 

• Futures: Dow -1.2%. S&P -1.5%. Nasdaq -1.5%. Crude -0.9% to $79.51. Gold +0.1% to $1198.90. 

• Asia: Japan -2.7% to 9293. Hong Kong -0.8% to 21295. China +0.5% to 2608. India -0.8% to 18070. 

• Europe: London -1.6%. Paris -1.6%. Frankfurt -1.6%.