MORNING COFFEE

Oil Prices Fall.  Oil prices are lower following reports from Asharq Al-Awsat and Al Jazeera that negotiations have occurred between rebel leaders where Gaddafi would step down and leave Libya in return for his and his family's wealth and safety. Additionally, OPEC is considering ramping up production and the US government is considering releasing the strategic oil reserves.  If the reserves are release it would only be the 3^rd time in history the strategic reserves were tapped.

Upgrades

Avnet (AVT): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $40.00 on the company.

Downgrades

Bed Bath & Beyond (BBBY): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $54.00 to $51.00.

Coverage Initiated

Whirlpool (WHR): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $99.00.

Tidewater (TDW): Dahlman Rose initiated coverage with a Buy rating and target price of $71.00.

Schlumberger (SLB): Dahlman Rose initiated coverage with a Buy rating and target price of $113.00.

Transocean (RIG): Dahlman Rose initiated coverage with a Buy rating and target price of $98.00.

Oceaneering Intl (OII): Dahlman Rose initiated coverage with a Buy rating and target price of $93.00.

National Oilwell Varco (NOV): Dahlman Rose initiated coverage with a Buy rating and target price of $104.00.

Halliburton (HAL): Dahlman Rose initiated coverage with a Buy rating and target price of $62.00.

Earning Reports

Dick's Sporting Goods (DKS): Reported EPS of $0.76 beating estimates by +$0.04.

Dynegy (DYN): Reported EPS of -$1.38 missing estimates by -$0.88.

Hot Topic (HOTT): Reported EPS of $0.12 missing estimates by -$0.01.

Urban Outfitters (URBN): Reported Q4 EPS of $0.45 missing estimates by -$0.07 on revenue of $668 million, missing estimates by -$6 million. Shares -14.27% Pre-market.

·         Futures at 7:00: Dow +0.2%. S&P +0.3%. Nasdaq +0.1%. Crude -0.1% to $105.34. Gold 0.0% at $1434.90.

·         Europe: London 0.0%. Paris +0.2%. Frankfurt +0.3%.

·         Asia: Japan +0.2% to 10525. Hong Kong +1.7% to 23712. China +0.1% to 3001. India +1.2% to 18440.