MORNING COFFEE

Oil Prices Continue To Rise. 

Oil prices have risen to nearly $112 a barrel Friday on reports that the fighting in Libya has damaged oil fields.  Prices now are at their highest level since September 2008 and there seems to be no relief in sight.  The higher oil prices are going to hit consumers at the pump.  Gas prices have increased over $0.12 in one week, brining that national average for regular unleaded to $3.74.  In some areas prices have already risen above $4.00 per gallon.  Prices are expected to continue to rise as long as there is turmoil in the Middle East.  Additionally, gas prices will jump even if oil prices remain stable, since the oil refineries are required to switch over to more expensive summer formulas.  Some analysts are now saying that $5.00 gas prices are a real possibility this summer.

Upgrades

Expedia (EXPE): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $35.00 on the company.

Coverage Initiated

Medtronic (MDT): Wunderlich initiated coverage with a Buy rating and target price of $46.00.

Travelzoo (TZOO): Morgan Keegan initiated coverage with a Market Perform rating and target price of $81.00.

Coverage Reiterated/Price Target Changed

Limited (LTD): RBC Capital Markets reiterated their Outperform rating and raised their target price from $37.00 to $39.00.

Williams-Sonoma (WSM): Oppenheimer reiterated their Outperform rating and raised their target price from $42.00 to $51.00.

Tempur-Pedic (TPX): Stifel Nicolaus reiterated their Buy rating and raised their target price from $60.00 to $66.00.

·         Futures at 7:00: Dow +0.3%. S&P +0.4%. Nasdaq +0.25%. Crude +1.2% to $111.60. Gold +0.8% to $1470.80.

·         Europe: London +0.8%. Paris +0.8%. Frankfurt +0.5%.

·         Asia: Japan +1.9%  to 9768. Hong Kong +0.5% to 24396. China +0.7% to 3030. India -0.7% to 19451.