MORNING COFFEE

Google Gives Mixed Report.  After the close yesterday Google (GOOG) reported Q1 earnings that missed Wall Street estimates.  The street was looking for EPS of $8.10 and reported EPS of $8.08, a 20% increase.  Operating costs at the company rose 54% to $2.84 billion and revenues climbed 29% to $6.54 billion beating estimates.  Google's higher spending came in the form of the hiring of over 1,900 people, as well as from higher R&D and sales and marketing costs. Some analysts are saying that the current spending increases should fuel future growth at the company.

Bank of America Misses On Earnings. Bank of America (BAC) reported Q1 EPS that missed estimates by -37%, coming in at just $0.17.  Although the results were partially offset by lower credit losses and higher banking fees these were not enough to offset other negative factors at the bank.  The bank continues to have issues with increased litigation expenses, higher mortgage-related costs, and lower sales and trading revenue from its Merrill Lynch unit.

Upgrades

Hasbro (HAS): Morgan Joseph raised their rating from Hold to Buy and placed a target price of $54.00 on the company.

Fifth Third (FITB): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $16.00 to $17.00.

Downgrades

Cisco Systems (CSCO): Auriga U.S.A lowered their rating from Buy to Hold and lowered their target price from $23.00 to $19.00.

Coverage Reiterated/Price Target Changed

Google (GOOG): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $775.00 to $750.00.

Google (GOOG): Oppenheimer reiterated their Outperform rating and lowered their target price from $715.00 to $650.00.

Tesla Motors (TSLA): Dougherty & Company reiterated their Buy rating and raised their target price from $30.00 to $40.00.

Earning Reports

Bank of America (BAC): Reported Q1 EPS of $0.17 missing estimates by -$0.10 on revenue of $27.1 billion, beating estimates by +$0.04 billion.

Infosys Technologies (INFY): Reported FQ4 EPS of $0.70 in-line with estimates on revenue of $1.6 billion, also  in-line with estimates.

Mattel (MAT): Reported Q1 EPS of $0.05 in-line with estimates on revenue of $951.9 million, beating estimates by +$48.2 million.

Google (GOOG): Reported Q1 EPS of $8.08 missing estimates by -$0.02 on revenue of $6.54 billion, beating estimates by +$220 million. 

·         Futures at 8:49: Dow -0.06%. S&P -0.05%. Nasdaq -0.29%. Crude 0.0% at $108.09. Gold +0.4% to $1477.80.

·         Europe: London +0.17%. Paris -0.35%. Frankfurt +0.31%.

·         Asia: Japan -0.7% to 9592. Hong Kong 0.0% at 24008. China+0.3% to 3051. India -1.6% to 19387.