MORNING COFFEE

World Markets Sell Off On Nuclear Fears. Stock markets continue to sell off as fears of a nuclear meltdown at Japans Fukushima Daiichi nuclear plant increase.   The Nikkei 225 fell as much as -14% before rebounding to close down -10.6% to 8,605.15 while the broader Topix index ended -9.5%. In efforts to stabilize markets, the Bank of Japan added ¥20 trillion or $245 billion of short-term liquidity to the record ¥15 trillion it pumped in yesterday. Autos fell since Toyota (TM), Honda (HMC), Nissan (NSANY), Mitsubishi and Isuzu, halted production after the quake. Oil fell as well, as did gold and other metals, although chip prices  extended the large gains they made on Monday.

Mid East Turmoil Escalates.  Saudi Arabian troops moved into Bahrain per a request from the kingdom to help put down the uprising.  In Oman protesting continued even after Sultan Qaboos bin Said gave a string of concessions to protestors.  In Libya the air force has attacked rebels in the town of Ajdabiya, just 100 miles from the opposition capital of Benghazi. Government forces have now recaptured the oil port of Ras Lanuf, the nearby town of Bin Jawad and the western city of Zawiyah. Crude futures are down -2.8% to $98.38 (7:00 ET).

Upgrades

Lowe's (LOW): FBR Capital raised their rating from Market Perform to Outperform and raised their target price from $29.00 to $31.00.

Downgrades

Lubrizol (LZ): KeyBanc Capital Markets lowered their rating from Buy to Hold.

Coverage Initiated

Charles Schwab (SCHW): Ticonderoga initiated coverage with a Neutral rating.

Coverage Resumed

Cognizant Tech (CTSH): Robert W. Baird resumed coverage with a Neutral rating and target price of $82.00.

Accenture (ACN): Robert W. Baird resumed coverage with an Outperform rating and target price of $63.00.

Infosys (INFY): Robert W. Baird resumed coverage with a Neutral rating and target price of $75.00.

Coverage Reiterated/Price Target Changed

Motorola Mobility (MMI): Oppenheimer reiterated their Outperform rating and lowered their target price from $36.00 to $32.00.

Earning Reports

Brown Shoe (BWS): Reported EPS of $0.11 missing estimates by -$0.04.

FactSet (FDS): Reported EPS of $0.89 beating estimates by +$0.02.

Williams-Sonoma (WSM): Reported EPS of $1.08 beating estimates by +$0.10.

·         Futures at 7:00: Dow -2.2%. S&P -2.65%. Nasdaq -2.8%. Crude -2.8% to $98.17. Gold -1.3% to $1406.20.

·         Europe: London -2.6%. Paris -3.4%. Frankfurt -4.7%.

·         Asia: Japan -10.6% to 8605. Hong Kong -2.9% to 22678. China-1.4% to 2897. India -1.5% to 18168.