MORNING COFFEE

Debt Ceiling Deadline Extended. 

Treasury Secretary Geithner will start taking “extraordinary measures” on Friday that will prevent the U.S. from hitting the $14.29 trillion debt ceiling.  The measures which include suspending the sale of some bonds combined with better-than-expected tax revenues will extend the deadline for Congress to vote on raising the debt ceiling until August 2.  Without the extra extraordinary measures the debt ceiling would have been reached on May 16^th.

Upgrades

Arch Coal (ACI): Brean Murray raised their rating from Hold to Buy and raised their target price from $32.00 to $43.00.

Downgrades

DISH Network (DISH): Hudson Square Research lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Arch Coal (ACI): FBR Capital reiterated their Outperform rating and lowered their target price from $50.00 to $46.00.

DISH Network (DISH): Kaufman Bros reiterated their Buy rating and raised their target price from $31.00 to $36.00.

Humana (HUM): Oppenheimer Kaufman Bros reiterated their Perform rating and raised their target price from $62.00 to $83.00.

Molycorp (MCP): Dahlman Rose Bros reiterated their Buy rating and raised their target price from $85.00 to $125.00.

Earning Reports

Cognizant Technology Solutions (CTSH): Reported Q1 EPS of $0.71 beating estimates by +$0.07 on revenue of $1.37 billion, beating estimates by +$0.01 billion. Pre-market: 79.50 -2.71 (-3.30%)

MetroPCS Communications (PCS): Reported Q1 EPS of $0.15 missing estimates by -$0.04 on revenue of $1.19 billion, beating estimates by +$0.07 billion. Pre-market: 17.50 +1.02 (6.19%)

Mylan Laboratories (MYL): Reported Q1 EPS of $0.44 in-line on revenue of $1.43 billion. Pre-market: 24.90 +0.06 (0.24%)

Spectra Energy (SE): Reported Q1 EPS of $0.54 beating estimates by +$0.02 on revenue of $1.61 billion, missing estimates by -$0.02 billion. Pre-market: 28.75 +0.04 (0.14%)

Automatic Data Processing (ADP): Reported FQ3 EPS of $0.85 in-line on revenue of $2.73 billion, in-line. Pre-market: Pre-market: 54.40 -0.30 (-0.55%)

·         Futures at 8:00: S&P -0.5%.  Nasdaq -0.41%. Dow -0.4% 10-yr +0.1%. Euro -0.2% vs. dollar. Crude -0.8% to $112.65. Gold -0.9% to $1542.60. Silver -5.2% to $43.67.

·         Europe: London -0.1%. Paris -0.6%. Frankfurt -0.9%.

·         Asia: Japan closed. Hong Kong closed. China closed. India -2.4%.