MORNING COFFEE

Rare Earth Miners Post Huge Gains. Shares of rare earth miners posted huge gains yesterday, after news reports that Molycorp would hit its Q1 sales targets and that volume from China had decreased. Rare earth minerals are used in manufacturing many products, including electronics. In yesterday's trading, Molycorp (MCP) +17.7%, Avalon Rare Metals (AVL) +13.2%, China GengSheng Minerals (CHGS) +63.45%, China Shen Zhou Mining & Resources (SHZ) +28.7%, Rare Element Resources (REE) +24.1%, Market Vectors Rare Earth Strat Metals ETF (REMX) +3.7%.

Upgrades

Jefferies Group (JEF): Ticonderoga raised their rating from Neutral to Buy and placed a target price of $30.00 on the company.

Coverage Initiated

Inergy (NRGY): Robert W. Baird initiated coverage with a Neutral rating and target price of $42.00.

Coverage Reiterated/Price Target Changed

Adobe Systems (ADBE): ISI Group reiterated their Neutral rating and raised their target price from $34.00 to $37.00.

Discover Financial Services (DFS): FBR Capital reiterated their Outperform rating and raised their target price from $22.00 to $25.00.

Earning Reports

General Mills (GIS): Reported FQ3 EPS of $0.56 in-line on revenue of $3.65 billion, missing estimates by-$0.04 billion.

Adobe (ADBE): Reported FQ1 EPS of $0.58 beating estimates by +$0.01 on revenue of $1.02 billion, in-line with estimates.

Cintas (CTAS): Reported FQ3 EPS of $0.41 beating estimates by +$0.05 on revenue of $938 million, beating estimates by +$30 million.

Discover Financial Services (DFS): Reported FQ1 EPS of $0.84 beating estimates by +$0.27.

Jabil Circuit (JBL): Reported FQ2 EPS of $0.54 beating estimates by +$0.03 on revenue of $3.92 billion, in-line with estimates.

·         Futures at 7:00: Dow +0.2%. S&P +0.3%. Nasdaq 0.0%. Crude +0.5% to $105.53. Gold +0.3% to $1432.40.

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

·         Asia: Japan -1.6% to 9449. Hong Kong -0.1% to 22825. China +1.0% to 2949. India +1.2% to 18206.

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