MORNING COFFEE

Stocks Set To Open Higher On bin Laden’s Death. 

Stocks are set to open higher after President Obama confirmed that U.S. Navy Seals killed Osama bin Laden.  Crude oil prices were -2.3% and the dollar index gained +0.3% in Asian trading. Analysts are questioning how Osama bin Laden could be living in a three story castle and very close to a Pakistan military base without help from some officials in the Pakistan military.  While I believe that his death is an overall positive, not only for the U.S. but the world, the reality is that his death doesn't change anything regarding the 

current turmoil in the Middle East, our energy situation or the war on terror.

Berkshire Hathaway’s Profits Fall. Warren Buffett at the Berkshire Hathaway (BRK.A/BRK.B) annual meeting said he estimates the Q1 fell to 1.5 billion from $3.6 billion a year earlier due to $1.7 billion pretax insurance losses due to the disasters in Japan, Australia.  During the meeting he said that it was "probably the second-worst quarter for the insurance industry in terms of disasters." Berkshire Hathaway is due to report earnings on Friday. Pre-market: 82.30 -1.00 (-1.20%)

Downgrades

Electronic Arts (ERTS): Kaufman Bros lowered their rating from Buy to Hold and placed a target price of $20.00 on the company.

JA Solar (JASO): Needham lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Akamai Tech (AKAM): Collins Stewart reiterated their Hold rating and lowered their target price from $51.00 to $45.00.

Baker Hughes (BHI): Dahlman Rose Collins Stewart reiterated their Hold rating and raised their target price from $81.00 to $95.00.

BP (BP): The Benchmark Company reiterated their Buy rating and raised their target price from $65.00 to $70.00.

FLIR Systems (FLIR): Needham reiterated their Buy rating and raised their target price from $65.00 to $70.00.

ITT Industries (ITT): FBR Capital reiterated their Market Perform rating and lowered their target price from $61.00 to $57.00.

Priceline.com (PCLN): The Benchmark Company reiterated their Buy rating and raised their target price from $570.00 to $660.00.

Earning Reports

DISH Network (DISH): Reported Q1 EPS of $1.22 beating estimates by +$0.54 on revenue of $3.22 billion, missing estimates by -$0.01 billion. Pre-market: 27.28 +2.24 (8.95%)

Humana (HUM): Reported Q1 EPS of $1.86 in-line on revenue of $9.19 billion, beating estimates by +$0.05 billion. Pre-market: 77.00 +0.88 (1.16%)

Loews Corp (L): Reported Q1 EPS of $0.92 beating estimates by +$0.01 on revenue of $3.66 billion, beating estimates by +$0.05 billion. Pre-market: 44.04 -0.22 (-0.50%)

·         Futures at 7:00: Dow +0.5%. S&P +0.5%. Nasdaq +0.5%. Crude -1.8% to $111.86. Gold +0.04% to $1557.

·         Europe: London closed. Paris +0.2%. Frankfurt +0.8%.

·         Asia: Japan +1.6% to 10004.2. Hong Kong closed. China closed. India -0.7% to 18998.