MORNING COFFEE

Obama Considers Lower Corp Tax. Administration Considers Lowering Corporate Tax Rate. The Obama administration said it’s open to lowering the U.S. corporate tax rate from its current 35% level.  The United States has one of the highest corporate tax rates in the world. The President said lowing corporate taxes would help ensure that companies operating overseas "can operate effectively and aren’t put at a competitive disadvantage."

Bank Of Japan Lowers Rates. In a surprise move the Bank of Japan cut its overnight call rate target to a range of 0-0.1% from 0.1%. In a statement the BOJ said the move was part of “comprehensive monetary easing,” and pledged to keep its benchmark interest rate at “virtually zero” until deflation has ended.  The BOJ will also set up a ¥5T ($60 billion) fund to buy government bonds and other assets.

Upgrades

Syniverse Holdings (SVR): RBC Capital Markets raised their rating from Sector Perform to Outperform and raised their target price from $23.00 to $28.00.

PF Chang's (PFCB): Argus raised their rating from Hold to Buy and placed a target price of $54.00 on the company.

Downgrades

Coca-Cola Ent (CCE):  Argus lowered their rating from Buy to Hold.

Coverage Initiated

Navistar (NAV): RBC Capital Markets initiated coverage with a Sector Perform rating and target price of $47.00.

Coverage Reiterated/Price Target Change

VeriSign (VRSN): Wedbush reiterated their Neutral rating and raised their target price from $27.00 to $30.00.

Motorola (MOT): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $9.00 to $10.00.

Harley-Davidson (HOG): RBC Capital Markets reiterated their Outperform rating and raised their target price from $33.00 to $36.00.

American Express (AXP): FBR Capital reiterated their Market Perform rating and lowered their target price from $48.00 to $45.00.

Earning Reports

Mosaic (MOS): Reported FQ1 EPS of $0.67 missing estimates by -$0.05 on revenue of $2.2 billion. 

·         Futures: Dow +0.1%. S&P +0.2%. Nasdaq +0.3%. Crude +0.7% to $82.01. Gold +0.8% to $1327.20.

·         Asia: Japan +1.5% to 9519. Hong Kong +0.1% to 22639. China +1.7% to 2656. India -0.3% to 20408.

·         Europe: London +0.1%. Paris +0.6%. Frankfurt -0.1%.