MORNING COFFEE

President Obama To Give Speech On Deficit. 

President Obama is scheduled to give a speech today at George Washington University that will lay out his plan for dealing with the deficit.  In the speech he is expected to propose cuts to entitlement programs, while increasing taxes.  This comes after the IMF said that the U.S.’s lack of a strategy to address the debt poses a risk of a new global economic crisis.

Coverage Initiated

Comerica (CMA): Morgan Keegan initiated coverage with a Market Perform rating and a target price of $38.00.

Coverage Resumed

Xilinx (XLNX): Auriga U.S.A resumed coverage with a Buy rating and target price of $36.00.

Altera (ALTR): Auriga U.S.A resumed coverage with a Buy rating and target price of $51.00.

Downgrades

Sunoco (SUN): The Benchmark Company lowered their rating from Hold to Sell and placed a target price of $34.00 on the company.

Coverage Reiterated/Price Target Changed

Iron Mountain (IRM): The Benchmark Company reiterated their Hold rating and raised their target price from $24.00 to $29.00.

Moody's (MCO): The Benchmark Company reiterated their Buy rating and raised their target price from $34.00 to $38.00.

Murphy Oil (MUR): Oppenheimer reiterated their Outperform rating and raised their target price from $82.00 to $90.00.

Earning Reports

JPMorgan Chase (JPM): Reported Q1 EPS of $1.28 beating estimates by +$0.12 on revenue of $25.8 billion. Pre-market: 47.24 +0.60 (1.29%)

ASML (ASML): Reported Q1 EPS of €0.90 beating estimates by + €0.07 on revenue of €1.45 billion.  Pre-market: 42.41 0.00 (0.00%)

·         Futures at 7:00: Dow +0.5%. S&P +0.5%. Nasdaq +0.6%. Crude+0.2% to $106.47. Gold +0.4% to $1459.60.

·         Europe: London +0.9%. Paris +0.9%. Frankfurt +1.0%.

·         Asia: Japan +0.9% to 9641. Hong Kong +0.7% to 24135. China +0.9% to 3050. India +2.3% to 19697.