MORNING COFFEE

Mideast Riots Spread.  Calls for government reforms that began in Tunisia and spread to Egypt are now spreading across the entire Middle East.  Violent riots have erupted in Iran, Bahrain, Iraq, Libya, Jordan and Yemen.  Additionally, demonstrations are continuing in Egypt led by the Muslim Brotherhood, more than $1 million people were at the demonstration that called for the release of all political prisoners.  Events could escalate today as people gather for Friday prayers.  The spread of violence has many predicting a huge spike in oil prices and a flock to the safety of gold and US treasuries.

China Acts To Halt Inflation.  China announced that it was raising its reserve requirements by 0.5% to 19.5%, this was the second hike this year. Last week China raised its key interest rate by 0.25%.  Government officials are trying to get a handle on rising inflation in the country.

Upgrades

Brocade (BRCD): Wunderlich raised their rating from Hold to Buy and raised their target price from $6.00 to $8.00.

Zimmer Holdings (ZMH): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $66.00 to $71.00.

Downgrades

ValueClick (VCLK): The Benchmark Company lowered their rating from Buy to Hold and placed a target price of $18.00 on the company.

Coverage Initiated

Laboratory Corp (LH): Collins Stewart initiated coverage with a Buy rating and target price of $103.00.

Coverage Reiterated/Price Target Changed

Lowe's (LOW): Oppenheimer reiterated their Outperform rating and raised their target price from $28.00 to $34.00.

Home Depot (HD): Oppenheimer reiterated their Outperform rating and raised their target price from $37.00 to $45.00.

       

Intuit (INTU): Oppenheimer reiterated their Outperform rating and raised their target price from $52.00 to $58.00.

Intuit (INTU): ISI Group reiterated their Hold rating and raised their target price from $50.00 to $53.00.

Earning Reports

Calpine (CPN): Reported Q4 EPS of -$0.38 missing estimates by -$0.28 on revenue of $1.47 billion, beating estimates by +$0.13 billion.

Aruba Networks (ARUN): Reported FQ2 EPS of $0.14 beating estimates by +$0.01 on revenue of $93.9 million, beating estimates by +$6 million.

Brocade Communications Systems (BRCD): Reported FQ1 EPS of $0.12 beating estimates by +$0.02 on revenue of $546 million, beating estimates by +$3 million.

Clearwire (CLWR): Reported Q4 EPS of -$0.53 beating estimates by +$0.01 on revenue of $181 million, missing estimates by -$12 million.

Intuit (INTU): Reported FQ2 EPS of $0.32 beating estimates by +$0.02 on revenue of $878 million, missing estimates by -$6 million.

Nordstrom (JWN): Reported Q4 EPS of $1.04 beating estimates by +$0.04 on revenue of $2.8 billion, in-line with estimates.

·         Futures at 7:00: Dow 0.0%. S&P -0.1%. Nasdaq -0.1%. Crude -0.2% to $86.17. Gold +0.1% to $1386.60.

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

·         n Asia, Japan +0.1% to 10842.8. Hong Kong +1.3% to 23595. China -0.9% to 2900. India -1.6% to 18212.