MORNING COFFEE

World Food Prices Continue To Climb. The United Nations’ Food and Agriculture Organization reported today that world food prices rose to a near record high in April as grain prices continue to rise.  The Index of 55 commodities rose to 232 from month ago levels of 231.  The all time high was reached in February at 237.2.

Corn prices have almost doubled in the past 12 months.  Wheat is up 57% and soybeans prices have risen 39% over the past 12 months.

Fears of inflation have caused the central banks in China, Poland, India, Swede and Europe to raise interest rates in an attempt to get inflation under control.  The higher food costs also contributed to the riots in the Middle East and Africa.  DBC 30.75, +10.75% ytd, +29.72% 1 yr

Coverage Reiterated/Price Target Changed

American Water (AWK): Brean Murray reiterated their Buy rating and raised their target price from $35.00 to $38.00.

Comcast (CMCSA): Kaufman Bros reiterated their Buy rating and raised their target price from $28.00 to $30.00.

CSX (CSX): Longbow reiterated their Buy rating and raised their target price from $90.00 to $92.00.

HCC Insurance (HCC): Wunderlich reiterated their Buy rating and raised their target price from $34.00 to $37.00.

MetLife (MET): FBR Capital reiterated their Buy rating and raised their target price from $52.00 to $54.00.

Molex (MOLX): Longbow reiterated their Buy rating and raised their target price from $30.00 to $32.00.

Earning Reports

CVS Caremark (CVS): Reported Q1 EPS of $0.57 beating estimates by +$0.02 on revenue of $25.88 billion, beating estimates by +$0.01 billion. Pre-market: 35.94 -0.18 (-0.50%)

DirecTV Group (DTV): Reported Q1 EPS of $0.85 beating estimates by +$0.014 on revenue of $6.31 billion, beating estimates by +$0.09 billion. Pre-market: 48.50 0.00 (0.0%)

Electronic Arts (ERTS): Reported FQ4 EPS of $0.25 beating estimates by +$0.03 on revenue of $995 million, beating estimates by +$71 million. Pre-market: 20.90 +0.98 (4.92%)

Expeditors International of Washington (EXPD): Reported Q2 EPS of $0.42 beating estimates by +$0.05 on revenue of $1.5 billion, in-line. Pre-market: 52.40 -0.40 (-0.76%)

JDS Uniphase (JDSU): Reported FQ3 EPS of $0.22 beating estimates by +$0.02 on revenue of $454 million, beating estimates by +$6 million. Pre-market: 21.56 +1.56 (7.80%)

Kellogg (K): Reported Q1 EPS of $1 missing estimates by -$0.04 on revenue of $3.48 billion, beating estimates by +$0.08 billion. Pre-market: 56.48 -0.28 (-0.49%)

News Corp. (NWS): FQ3 EPS of $0.26 missing estimates by -$0.01 on revenue of $8.26 billion, missing estimates by -$0.16 billion.

NRG Energy (NRG): Reported Q1 EPS of -$1.06 missing estimates by -$1.17 on revenue of $1.99 billion, missing estimates by -$0.32 billion.

Whole Foods Market (WFMI): Reported FQ2 EPS of $0.51 beating estimates by +$0.05 on revenue of $2.4 billion, in-line. Pre-market: 61.99 +2.25 (3.77%)

·         Futures at 8:45: Dow -0.4%. S&P -0.6%. Nasdaq -0.5%. Crude -2.35% to $106.67. Gold -0.9% to $1501.80.

·         Europe: London -1.01%. Paris -1.25%. Frankfurt -0.62%.

·         Asia: Japan closed. Hong Kong -0.2% to 23259. China +0.3% to 2873. India -1.6% to 18169.