MORNING COFFEE

Wells Fargo To Modify Loans. California Attorney General Jerry Brown announced that  Wells Fargo (WFC) has agreed to loan modifications totaling $2.4 billion to California homeowners with "pick-a-payment" adjustable-rate mortgages. The agreement also has Wells Fargo paying an additional $32 million to borrowers who lost their homes through foreclosure. Wells Fargo in a statement said they hope to reach similar agreements with all fifty states.

Upgrades

Regis (RGS): Wedbush raised their rating from Neutral to Outperform and raised their target price from $20.00 to $22.00.

Downgrades

Urban Outfitters (URBN): Brean Murray lowered their rating from Buy to Hold.

Coverage Initiated

SunTrust Banks (STI): RBC Capital Markets initiated coverage with an Outperform rating and target price of $31.00.

Unisys (UIS): Oppenheimer initiated coverage with an Outperform rating and target price of $28.00.

Coverage Reiterated/Price Target Changed

Jabil Circuit (JBL): RBC Capital Markets reiterated their Outperform rating and raised their target price from $20.00 to $22.00.

Jabil Circuit (JBL): Collins Stewart reiterated their Buy rating and raised their target price from $18.00 to $23.00.

Adobe Systems (ADBE): FBR Capital reiterated their Market Perform rating and raised their target price from $31.00 to $33.00.

Adobe Systems (ADBE): ISI Group reiterated their Hold rating and raised their target price from $30.00 to $34.00.

Earning Reports

Adobe (ADBE): Reported FQ4 EPS of $0.56 beating estimates by +$0.04 on revenue of $1 billion up +33%.

Darden Restaurants (DRI): Reported FQ2 EPS of $0.54 in-line on revenue of $1.7 billion up +5.2%.

Jabil Circuit (JBL): Reported FQ1 EPS of $0.61 beating estimates by +$0.07 on revenue of $4.1 billion up +32%.

Paychex (PAYX): Reported FQ2 EPS of $0.37 beating estimates by +$0.02 on revenue of $512 million up +3.1%.

·         Futures at 7:00: Dow +0.3%. S&P +0.3%. Nasdaq +0.2%. Crude +0.1% to $89.44. Gold +0.05% to $1386.80.

·         Asia: Japan +1.5% to 10371. Hong Kong +1.6% to 22994. China+1.8% to 2904. India +0.9% to 20060.

·         Europe: London +0.7%. Paris +0.5%. Frankfurt +0.6%.