MORNING COFFEE

Libya in Crisis. Military analysts say that Libyan leader Muammar Gaddafi’s regime will fall in a matter of days.  The crisis has caused Libya to close all their ports and foreign oil companies have suspended their operations.  Additionally, Eni S.p.A. (E) closed an important pipeline that brings natural gas from Libya to Italy.  The protest in Libya may have left over 1000 demonstrators killed by government forces.  The growing unrest in the entire Mideast sent markets lower worldwide and oil higher. Crude futures were up nearly 9% yesterday to $93.57.

Upgrades

Honeywell (HON): Argus raised their rating from Hold to Buy.

L-3 Comms (LLL): Argus raised their rating from Sell to Hold.

Coverage Reiterated/Price Target Changed

Medtronic (MDT): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $37.00 to $39.00.

Deckers Outdoor (DECK): RBC Capital Markets reiterated their Outperform rating and raised their target price from $60.00 to $102.00.

Earning Reports

DIRECTV (DTV): Reported EPS of $0.74 beating estimates by +$0.11.

Hewlett-Packard (HPQ): Reported FQ1 EPS of $1.36 beating estimates by +$0.07 on revenue of $32.3 billion, missing estimates by -$0.65 billion.

Lowe's (LOW): Reported Q4 EPS of $0.21 beating estimates by +$0.03 on revenue of $10.4 billion, in-line with estimates.

SkyWest (SKYW): Reported EPS of $0.67 beating estimates by +$0.34.

TJX (TJX): Reported EPS of $1.05 beating estimates by +$0.03.

Toll Brothers (TOL): Reported FQ1 EPS of $0.02 beating estimates by +$0.09 on revenue of $334 million, beating estimates by +$17 million.

·         Futures at 7:00: Dow +0.4%. S&P +0.4%. Nasdaq +0.5%. Gold +0.1% to $1401.90.

·         Europe: London -0.5%. Paris +0.2%. Frankfurt -0.3%.

·         Asia: Japan -0.8% to 10579.1. Hong Kong -0.4% to 22907. China +0.3% to 2863. India -0.6% to 18178.