MORNING COFFEE

Jobless Claims Still Mounting. Jobless claims came in at 414,000 well ahead of the 400,000 that economist had expected.  The four-week average, a less volatile measure, increased for the third straight week to 414,750.  Additionally continuing claims came in higher than expected at 3,717,000.  This comes just before President Obama’s speech tonight which will outline his jobs plan.  Leaks ahead of the speech say he will outline a $300 to $400 billion stimulus package with the hopes it will do something to increase job growth.  Many economists are skeptical, since say he will call for extensions of the payroll tax cut and long-term unemployment benefits, and money for public works projects which have already been tried without success.

Upgrades

Cisco Systems (CSCO): Auriga raised their rating from Hold to Buy and raised their target price from $16.00 to $20.00. Pre-market: 15.89 +0.01 (0.06%)

ENSCO PLC (ESV): CLSA raised their rating from Outperform to Buy and placed a target price of $60.00 on the company.

Coverage Initiated

Celgene (CELG): BMO Capital initiated coverage with an Outperform rating and target price of $90.00.

Microsoft (MSFT): Nomura initiated coverage with a Buy rating and target price of $32.00. Pre-market: 26.00 0.00 (0.00%)

Earnings

Smithfield Foods (SFD): Reported EPS of $0.69 beating estimates by +$0.02. Pre-market: 22.20 +0.08 (0.36%)

Markets: 
Futures at 8:56: Dow -0.60%. S&P -0.72%. Nasdaq -0.82%. Crude -0.21% at $89.16. Gold +2.24% to $1858.70. 

Europe: London +0.7%. Paris +0.7%. Frankfurt +0.9%. 

Asia: Japan +0.3% to 8793. Hong Kong -0.7% to 19913. China -0.7% to 2499. India +0.6% to 17166.