MORNING COFFEE

Ernst & Young Faces Fraud Charges. Reports say that New York Attorney General Andrew Cuomo is close to filing the civil fraud charges against accounting firm Ernst & Young.  The charges stem from the accounting firms alleged role in the collapse of Lehman Brothers (LEHMQ). If charges are filed it would be the first time a major accounting firm was held responsible for its role during the financial crisis.

Upgrades

CONSOL Energy (CNX): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $48.00 to $61.00.

InterMune (ITMN): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $15.00 to $47.00.

Downgrades

Fiserv (FISV): Robert W. Baird lowered their rating from Outperform to Neutral and placed a target price of $63.00 on the company.

American Express (AXP): Stifel Nicolaus lowered their rating from Buy to Hold and placed a target price of $53.00 on the company.

Coverage Initiated

Carnival (CCL): HSBC Securities initiated coverage with an Overweight rating and a target price of $51.00.

Royal Caribbean (RCL): HSBC Securities initiated coverage with a Neutral rating and a target price of $43.00.

Coverage Reiterated/Price Target Changed

Accenture (ACN): Argus reiterated their Buy recommendation and raised their target price from $55.00 to $58.00.

InterMune (ITMN): Stifel Nicolaus reiterated their Buy recommendation and raised their target price from $17.00 to $56.00.

ITT Industries (ITT): FBR Capital reiterated their Market Perform recommendation and raised their target price from $59.00 to $61.00.

Peabody Energy (BTU): FBR Capital reiterated their Outperform recommendation and raised their target price from $61.00 to $75.00.

Massey Energy (MEE): FBR Capital reiterated their Market Perform recommendation and raised their target price from $55.00 to $56.00.

Earning Reports

Companies reporting after the market close today.

Adobe Systems (ADBE): Consensus $0.52 versus $0.39 yr ago.

Darden Restaurants (DRI): Consensus $0.54 versus $0.43 yr ago.

Jabil Circuit (JBL): Consensus $0.54 versus $0.32 yr ago.

Paychex (PAYX): Consensus $0.35 versus $0.35 yr ago.

·         Futures at 7:00: Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude +0.3% to $88.25. Gold +0.2% to $1382.50.

·         Asia: Japan -0.8% to 10216. Hong Kong -0.3% to 22639. China -1.4% to 2853. India +0.1% to 19889.

·         Europe: London +0.5%. Paris +1.1%. Frankfurt +1.1%.