MORNING COFFEE

U.S. Unemployment Jumps.  The Labor Department announced that the unemployment rate unexpectedly jumped to 9.8% from 9.6%.  Nonfarm Payrolls also disappointed the market, as only 39,000 new jobs were created.  Economists were looking for 130,000 new jobs to have been created.  Many economists are now saying that the government’s strategy of huge spending programs to  stimulate the labor market is not working, and that allowing President Obama to raise taxes by allowing the current rates to change would kill the economy.

Upgrades

National Semi (NSM): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $17.50 to $20.00.

Downgrades

Helen of Troy (HELE): Wedbush lowered their rating from Neutral to Underperform and lowered their target price from $25.00 to $19.00.

National Oilwell Varco (NOV): Dahlman Rose lowered their rating from Buy to Hold.

NASDAQ (NDAQ): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Initiated

Time Warner (TWX): Stifel Nicolaus initiated coverage with a Buy rating and target price of $37.00.

Coverage Reiterated/Price Target Changed

Halliburton (HAL): Dahlman Rose reiterated their Buy rating and raised their target price from $53.00 to $68.00.

Toronto-Dominion Bank (TD): RBC Capital Markets reiterated their Outperform rating and raised their target price from $86.00 to $92.00.

National Oilwell Varco (NOV): Stifel Nicolaus reiterated their Buy rating and raised their target price from $62.00 to $94.00.

Ulta Salon (ULTA): Oppenheimer reiterated their Outperform rating and raised their target price from $35.00 to $40.00.

Ulta Salon (ULTA): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $33.00 to $35.00.

Ulta Salon (ULTA): Jefferies reiterated their Hold rating and raised their target price from $25.00 to $34.00.

Schlumberger (SLB): Dahlman Rose reiterated their Buy rating and raised their target price from $95.00 to $119.00.

Earning Reports

Ulta Salon (ULTA): Reported FQ4 EPS of $0.23 beating estimates by +$0.03 on revenue of $447 million   

Big Lots (BIG): Reported FQ3 EPS of $0.23 missing estimates by -$0.01 on revenue of $1.06 billion up +2% in-line.

Novell (NOVL): Reported FQ4 EPS of $0.07 in-line on revenue of $207 million down -4.2%.

Veriphone (PAY): Reported FQ4 EPS of $0.40 Beating estimates by +$0.04 on revenue of $276 million up +26.7%.

·         Futures at 9:03: Dow -0.56%. S&P -0.67%. Nasdaq -0.67%. Crude -0.65% to $87.43. Gold +0.76% to $1399.

·         In Asia, Japan +0.1% to 10178. Hong Kong -0.6% to 23321. China 0.0%. India -0.1% to 19967.

·         In Europe: London -0.64%. Paris -0.49%. Frankfurt -0.46%.