MORNING COFFEE

Intel Unveils Ultrabook.  At this year Computex in Taiwan, Intel (INTC) unveiled what it is calling an Ultrabook.  The ultra-thin, power efficient device combines the power of a laptop with the features and styling of a tablet computer.  Intel’s goal is to take market share from Apple’s (AAPL) iPad by producing a device that can do more than what current tablet computers can.  The Ultrabook is expected to be released in the 4th quarter and cost under $1,000. 

Upgrades

Big Lots (BIG): ThinkEquity raised their rating from Hold to Buy and raised their target price from $35.00 to $38.00.

Broadcom (BRCM): BMO Capital raised their rating from Market Perform to Outperform and placed a target price of $50.00 o the company.

eBay (EBAY): ThinkEquity raised their rating from Hold to Buy and raised their target price from $36.00 to $38.00.

Goldman Sachs (GS): JPMorgan raised their rating from Neutral to Overweight and placed a target price of $175.00 on the company.

Downgrades

Medtronic (MDT): Argus lowered their rating from Hold to Sell.

Coverage Initiated

Alcoa (AA): First Global initiated coverage with a Market Perform rating.

Coverage Resumed

NVIDIA (NVDA): Auriga resumed coverage with a Buy rating and target price of $24.00.

Coverage Reiterated/Price Target Changed

Medco Health Solutions (MHS): FBR Capital reiterated their Outperform rating and lowered their target price from $75.00 to $71.00.

NetLogic (NETL): Stifel Nicolaus reiterated their Buy rating and raised their target price from $47.00 to $49.00.

·         Futures at 7:00: Dow +0.9%. S&P +0.9%. Nasdaq +1.0%. Crude +1.9% to $102.48. Gold +0.1% to $1538.00.

·         Europe: London +1.0%. Paris +1.5%. Frankfurt +1.9%.

·         Asia: Japan +2.0% to 9694. Hong Kong +2.2% to 23684. China +1.4% to 2744. India +1.5% to 18503.

MORNING COFFEE

Google Unveils Smartphone Wallet. Google (GOOG) has unveiled a service called Google Wallet that replaces your credit cards and allows consumers to pay for items with their Smartphone’s.  The service would also allow users to store coupons and receipts on their Android phones.  PayPal which is owned by eBay (EBAY) immediately filed a lawsuit claiming that Google stole the technology.  Analysts believe that the technology could be $1 trillion opportunity.

Upgrades

Sony (SNE): Maxim raised their rating from Hold to Buy and placed a target price of $35.00 on the company.

Coverage Initiated

Hewlett-Packard (HPQ): Ticonderoga initiated coverage with a Neutral rating.

DuPont (DD): Goldman Sachs initiated coverage with a Neutral rating and target price of $63.00.

Coverage Reiterated/Price Target Change

HJ Heinz (HNZ): Stifel Nicolaus reiterated their Buy rating and raised their target price from $53.00 to $58.00.

Big Lots (BIG): The Benchmark Company reiterated their Buy rating and lowered their target price from $50.00 to $45.00.

Earning Reports

Marvell Technology Group (MRVL): Reported Q1 EPS of $0.29 missing estimates by -$0.01 on revenue of $802 million, missing estimates by -$24 million. 

OmniVision Technologies (OVTI): Reported FQ4 EPS of $0.66 beating estimates by +$0.01 on revenue of $258 million, beating estimates by -$3 million.

·         Futures at 7:00: Dow -0.1%. S&P +0.1%. Nasdaq 0.0%. Crude +0.35% to $100.58. Gold +0.3% to $1526.80.

·         Europe: London +0.8%. Paris +0.9%. Frankfurt +0.3%.

·         Asia: Japan -0.4% to 9522. Hong Kong +0.9% to 23118. China -1.0% to 2710. India +1.2% to 18266.

MORNING COFFEE

Foreclosure Sales Continue to Climb. Home sales and prices are continuing to suffer.  Sales of foreclosed homes accounted for 28% of all home sales in Q1.  In some areas of the country it’s even worse.  In Nevada, foreclosures account for 53% of homes sold in the state.  In both California and Arizona foreclosures accounted for 45% of sales.  The three year inventory of foreclosed homes is also pressuring prices lower.  On average bank owned properties are selling for a 35% discount to comparable properties.  In New York the discount to REO was 53% and in Illinois, Ohio and Wisconsin the discount was nearly 50%.

Upgrades

Aeropostale (ARO): FBR Capital raised their rating from Underperform to Market Perform and placed a target price of $20.00 on the company. Pre-market: 18.58 +0.23 (1.25%)

American Eagle (AEO): FBR Capital raised their rating from Market Perform to Outperform and placed a target price of $17.00 on the company. Pre-market: 13.22 +0.20 (1.54%)

Comerica (CMA): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $43.00 on the company. Pre-market: 35.65 +0.49 (1.39%)

Oracle (ORCL): ThinkEquity raised their rating from Hold to Buy and raised their target price from $34.00 to $40.00. Pre-market: 33.20 +0.21 (0.64%)

Coverage Initiated

Medifast (MED): Janney Monntgomery Scott initiated coverage with a Buy rating.

Tupperware (TUP): Janney Monntgomery Scott initiated coverage with a Neutral rating and target price of $65.00 on the company.

Earning Reports

Big Lots (BIG): Reported FQ1 EPS of $0.70 beating estimates by +$0.01 on revenue of $1.2 billion, in-line. Pre-market: 30.80 -1.53 (-4.73%)

Guess? (GES): Reported Q1 EPS of $0.55 beating estimates by +$0.11 on revenue of $592 million, beating estimates by +$24 million. Pre-market: 45.14 +5.04 (12.57%)

Tiffany (TIF): Reported Q1 EPS of $0.67 beating estimates by +$0.10 on revenue of $761 million, beating estimates by +$57 million.  The company also raised their FY'12 EPS outlook to $3.45-3.55. Pre-market: 73.80 +3.76 (5.37%) 

Toronto Dominion Bank (TD): Reported FQ2 EPS of $1.59 missing estimates by -$0.01. Pre-market: 86.70 -0.08 (-0.09%)  

·         Futures at 9:00: Dow +0.15%. S&P +0.05%. Nasdaq -0.19%. Crude -0.2% to $101. Gold -0.27% to $1522.60.

·         Europe: London +0.43%. Paris -0.04%. Frankfurt -0.54%.

·         Asia: Japan +1.5% to 9562. Hong Kong +0.7% to 22901. China -0.2% to 2735. India +1.1% to 18045.

MORNING COFFEE

Bank Probes for Wrong Doings Expands. Reports say that New York Attorney General Eric Scheiderman has expanded his investigations into mortgage practices at some of the largest banks, including JPMorgan Chase (JPM), Deutsche Bank (DB), Royal Bank of Scotland (RBS), and UBS (UBS). Additionally California Attorney General Kamala Harris has created a task force to investigate corporate fraud, scams and lending practices.  Meanwhile the SEC is looking at Bank of New York Mellon (BK) and State Street (STT) to determine if they fairly charged pension-fund clients for currency trading.  The Justice Department and three state attorney generals are already investigating the banks. 

Upgrades

Mylan Labs (MYL): Argus raised their rating from Hold to Buy and placed at target price of $29.00 on the company.

Salesforce.com (CRM): JPMorgan raised their rating from Equal Weight to Overweight and placed a target price of $200.00 on the company.

Mosaic (MOS): Credit Suisse raised their rating from Neutral to Outperform and raised their target price from $81.00 to $85.00.

Downgrades

CBOE Holdings (CBOE): Stifel Nicolaus lowered their rating from Hold to Sell.

Research In Motion (RIMM): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $76.00 to $46.00.

Coverage Initiated

AutoNation (AN): Davenport initiated coverage with a Neutral rating.

CONSOL Energy (CNX): Davenport initiated coverage with a Buy rating and target price of $59.00.

Earning Reports

AutoZone (AZO): Reported FQ3 EPS of $5.29 beating estimates by +$0.31 on revenue of $1.98 billion, beating estimates by +$0.07 billion. Pre-market: 288.00 +11.22 (4.05%)

·         Futures at 7:00: Dow +0.3%. S&P +0.2%. Nasdaq +0.2%. Crude +1.3% to $98.99. Gold +0.5% to $1522.90.

·         Europe: London +0.5%. Paris +0.1%. Frankfurt +0.9%.

·         Asia: Japan +0.2% to 9477. Hong Kong +0.1% to 22731. China -0.3% to 2768. India +0.1% to 18012.

MORNING COFFEE

European Debt Worries Send World Markets Lower. 

US stocks are due to open lower today after speculation that Greece will need to restructure its €340B ($484 billion) sovereign debt. Greece has already fallen behind in its debt payments to healthcare companies just months after restructuring it. Rating agency Fitch downgraded its view on Greece's debts further below junk status.

In Spain the Socialist party suffered huge losses yesterday in local and regional elections in a protest vote against deep budget cuts and assistance to banks that have kept a fiscal crisis in check, but has not brought down high unemployment. Analysts believe more cuts are needed to prevent Spain from defaulting on their debt.

Additionally, fear of the debt crisis in Europe spreading beyond the PIGS (Portugal, Ireland, Greece, Spain) was heightened after Standard & Poor's lowered its outlook on Italy's debt. 

Upgrades

Walt Disney (DIS): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $50.00 on the company.

Mosaic (MOS): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $77.50 on the company.

Coverage Initiated

Silicon Labs (SLAB): Needham initiated coverage with a Buy rating and target price of $51.00.

Clean Harbors (CLH): Oppenheimer initiated coverage with a Perform rating and target price of $110.00.

Coverage Reiterated/Price Target Changed

Herbalife (HLF): Canaccord Genuity reiterated their Buy rating and raised their target price from $54.00 to $61.00.

Foot Locker (FL): FBR Capital reiterated their Outperform rating and raised their target price from $24.00 to $28.00.

Earning Reports

Krispy Kreme Doughnuts (KKD): Reported EPS of $0.13 beating estimates by +$0.04.

Campbell Soup (CPB): Reported EPS of $0.57 beating estimates by +$0.05.

·         Futures at 7:00: Dow -0.9%. S&P -1.0%. Nasdaq -0.1%. Crude +1.1% to $99.49. Gold +0.1% to $1510.10.

·         Europe: London -1.6%. Paris -1.8%. Frankfurt -1.7%.

·         Asia, Japan -1.5% to 9461. Hong Kong -2.1% to 22711. China -2.9% to 2776. India -1.8% to 17993.

MORNING COFFEE

LinkedIn Shares Rocket on IPO. 

The LinkedIn (LNKD) IPO began trading yesterday after being priced at $45.00.  This was over 30% above the initial range of $32.00 - $35.00.  Shares took off from there, reaching a high of over $115 per share before closing at $94.25 a 109% increase.  Some analysts are now questioning the company’s $8.9 billion capitalization with shares trading at 584 times 2010 earnings and 37 times revenue.  Some are even comparing the company to the tech bubble of the 1990’s and collapse.  Remember Pets.com? Other social networking companies that are expected to go public include Facebook, Groupon and Zynga amoung others. Pre-market: 97.50 +3.25 (3.45%)

Upgrades

Tyson Foods (TSN): KeyBanc raised their rating from Hold to Buy and placed a target price of $23.00 on the company. Pre-market: 18.66 +0.10 (0.54%)

Resumed Coverage

American Express (AXP): Goldman Sachs resumed coverage with a Buy rating and target price of $59.00. Pre-market: 51.76 -0.06 (-0.12%)

Downgrades

Gap (GPS): Piper Jaffray lowered their rating from Overweight to Neutral and lowered their target price from $25.00 to $19.00. Pre-market: 19.20 -4.09 (-17.56%)

Coverage Reiterated/Price Target Changed

Aeropostale (ARO): Janney Montgomery Scott reiterated their Neutral rating and lowered their target price from $22.00 to $17.00. Pre-market: 18.34 -3.00 (-14.06%)

Gap (GPS): Janney Montgomery Scott reiterated their Neutral rating and lowered their target price from $24.00 to $21.00. Pre-market: 19.20 -4.09 (-17.56%)

Earning Reports

Aeropostale (ARO): Reported Q1 EPS of $0.20 in-line with estimates on revenue of $469 million, missing estimates by -$9 million. Pre-market: 18.34 -3.00 (-14.06%)

Brocade Communications Systems (BRCD): Reported FQ2 EPS of $0.13 beating estimates by +$0.03 on revenue of $550 million, beating estimates by +$1 million. Pre-market: 6.30 +0.04 (0.59%) 

Foot Locker (FL): Reported Q1 EPS of $0.60 beating estimates by +$0.16 on revenue of $1.5 billion, beating estimates by +$0.1 billion. Pre-market: 24.38 +2.12 (9.52%)

Gap (GPS): Reported Q1 EPS of $0.40 beating estimates by +$0.01 on revenue of $3.3 billion, in-line. Pre-market: 19.20 -4.09 (-17.56%)

Intuit (INTU): Reported FQ3 EPS of $2.33 beating estimates by +$0.05 on revenue of $1.84 billion, in-line. Pre-market: 54.28 -1.62 (-2.90%)

Salesforce.com (CRM): Reported Q1 EPS of $0.28 beating estimates by +$0.01 on revenue of $504 million, beating estimates by +$21 million. Pre-market: 146.00 +10.19 (7.50%)

·         Futures at 8:21: Dow -0.31%. S&P -0.31%. Nasdaq -0.29%. Crude +0.25% to $98.69. Gold -0.23% to $1492.40.

·         Europe: London +0.53%. Paris -0.23%. Frankfurt -0.09%.

·          Asia, Japan -0.14% to 9607. Hong Kong +0.16% to 23199. China -0.04% to 2858. India +1.02% to 18326.