MORNING COFFEE

Microsoft Office to Join Cloud. CEO Steve Ballmer is expected to unveil Microsoft’s (MSFT) online version of Office.   Office 365 is expected to enable customers to use applications such as Word, Outlook, PowerPoint and Excel on a variety of devices over the Internet. The new offering is in direct response to Google’s (GOOG) very successful Google Docs.  Google Docs has attracted over 40 million users, including many corporate customers from Microsoft due to its lower costs and simple implementation. MSFT Pre-market: 25.23 +0.03 (0.12%) GOOG Pre-market: 482.00 -0.80 (-0.17%)

Nike Post Nice Earnings Report. Nike's (NKE) reported FQ4 earnings that beat expectations.  Net profits and revenue jumped 14% to $594M and $5.77B respectively.  The company saw revenues grew in every market except Japan, which was expected due to the earthquake.  Additionally this came as Nike increased prices to offset higher costs.  Futures orders also exceeded estimates, rising 15% to $10.3 billion. Pre-market: 85.19 +3.57 (4.37%)

S&P 500 Index to Add Accenture. Standard & Poor’s announced that after the July 5^th session Accenture (ACN) will join the S&P 500 index. The company will replace Marshall & Ilsley (MI), which is being acquired by Bank of Montreal (BMO). ACN Pre-market: 60.85 +3.06 (5.30%)

Upgrades

Seagate Technologies (STX): FBN Securities raised their rating from Sector Perform to Outperform and raised their target price from $20.00 to $21.00. Pre-market: 15.58 +0.36 (2.37%)

Downgrades

Motorola Mobility (MMI): BMO Capital downgraded their rating from Market Perform to Underperform and lowered their target price from $26.00 to $19.00. Pre-market: 22.54 -0.28 (-1.23%)

Accenture (ACN): Jefferies lowered their rating from Buy to Hold and lowered their target price from $60.00 to $58.00. Pre-market: 60.85 +3.06 (5.30%)

Coverage Initiated

Cree (CREE): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $41.00. Pre-market: 33.86 +0.33 (0.98%)

MasterCard (MA): Jefferies initiated coverage with a Buy rating and target price of $333.00. Pre-market: 271.50 -1.10 (-0.40%)

Visa (V): Jefferies initiated coverage with a Buy rating and target price of $95.00. Pre-market: 73.90 +0.01 (0.01%)

Paychex (PAYX): Jefferies initiated coverage with a Hold rating and target price of $31.00.

Western Union (WU): Jefferies initiated coverage with a Buy rating and target price of $24.00.

Earning Reports

Nike (NKE): Reported FQ4 EPS of $1.24 Beating estimates by +$0.08 on revenue of $5.77 billion, beating estimates by +$0.24 billion. Pre-market: 85.19 +3.57 (4.37%) 

·         Futures at 8:10: Dow -0.13%. S&P -0.08%. Nasdaq -0.17%. Crude +0.76% to $91.29. Gold +0.47% to $1503.40.

·         Europe: London +0.78%. Paris +0.65%. Frankfurt -0.13%.

·         Asia: Japan +0.74% to 9649. Hong Kong +0.09% to 22062. China +0.04% to 2760. India +0.43% to 18492.