MORNING COFFEE

Intel Chips Have Design Error. Intel (INTC) announced that its 6 series chipset has a design error and that they have a solution that would knock roughly $300M off of Q1 revenue. Despite the news, Intel raised its Q1 revenue guidance to $11.3B-12.1B versus $11.46B consensus and up from $11.1B-11.9B prior guidance.

Upgrades

Advanced Micro (AMD): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $15.00 on the company.

Downgrades

ProLogis (PLD): RBC Capital Markets lowered their rating from Outperform to Sector Perform and lowered their target price from $16.00 to $15.25.

Jetblue Airways (JBLU): Argus lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Novellus (NVLS): RBC Capital Markets reiterated their Top Pick rating and raised their target price from $40.00 to $42.00.

Automatic Data (ADP): Argus reiterated their Buy rating and raised their target price from $52.00 to $54.00.

Quest Diagnostics (DGX): Kaufman Bros reiterated their Buy rating and raised their target price from $62.00 to $64.00.

Earning Reports

UPS (UPS): Reported EPS of $1.08 beating estimates by +$0.03.

Archer-Daniels (ADM): Reported EPS of $1.14 beating estimates by +$0.36.

Emerson (EMR): Reported EPS of $0.63 missing estimates by -$0.02.

Covidien (COV): Reported FQ1 EPS of $0.95 beating estimates by +$0.14 on revenue of $2.77 billion.

Anadarko (APC): Reported Q4 EPS of $0.29 beating estimates by +$0.06 on revenue of $2.7 billion. 

Baidu.com (BIDU): Reported Q4 EPS of $0.50 beating estimates by +$0.04 on revenue of $371 million. 

Novellus Systems (NVLS): Reported Q4 EPS of $1.03 beating estimates by +$0.08 on revenue of $384 million.

·         Futures at 7:00: Dow +0.3%. S&P +0.5%. Nasdaq +0.6%. Crude -0.8% to $91.46. Gold +0.3% to $1337.50.

·         Europe: London +1.0%. Paris +0.9%. Frankfurt +1.0%.

·         Asia: Japan +0.4% to 10274.5. Hong Kong +0.1% to 23483. China+0.3% to 2799. India -1.7% to 18,022.