MORNING COFFEE

Jobless Claims Jump.  The Labor Department released the latest jobless number and it was not good.  Applications for unemployment benefits climbed to 428,000 well above the 410,000 that economist had estimated.  This is the second straight week that new claims for unemployment have increased. The four-week moving average, which smoothes out volatility, also rose to 419,500 from 415,500.  Continuing claims fell slightly to 3.726 million from 3.738 million.  The number of total recipients on benefit rolls was 7.144 million.

Upgrades

Applied Materials (AMAT): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $16.00 on the company. Pre-market: 11.43 +0.19 (1.65%)

Telefonica S.A. (TEF): Bernstein raised their rating from Market Perform to Outperform. Pre-market: 19.14 +0.38 (2.03%)

Cracker Barrel (CBRL): Raymond James raised their rating from Market Perform to Outperform and placed a target price of $47.00 on the company.

Dole Food Co (DOLE): JP Morgan raised their rating from Neutral to Outperform and raised their target price from $11.00 to $12.00.

Union Pacific (UNP): UBS raised their rating from Neutral to Buy and raised their target price from $110.00 to $113.00. Pre-market: 89.76 +1.00 (1.13%)

Downgrades

ConAgra (CAG): Goldman Sachs lowered their rating from Buy to Neutral and lowered their target price from $31.00 to $27.00. Pre-market: 23.33 -0.12 (-0.51%)

Societe Generale (SCGLY): Nomura lowered their rating from Buy to Reduce.

Lloyds Banking (LYG): Nomura lowered their rating from Buy to Neutral. Pre-market: 2.14 +0.01 (0.47%)

Coverage Initiated

Linkedin (LNKD): Argus initiated coverage with a Hold rating. Pre-market: 87.70 +0.15 (0.17%)

Wal-Mart (WMT): Deutsche Bank initiated coverage with a Sell rating and target price of $48.00. Pre-market: 52.41 +0.21 (0.40%)

Target Corp. (TGT): Deutsche Bank initiated coverage with a Hold rating and target price of $50.00. Pre-market: 51.63 +0.35 (0.68%)

Earnings

Pier 1 (PIR): Reported EPS of $0.14 in-line with estimates. Pre-market: 11.96 +0.29 (2.49%)

Markets:

Futures at 8:36: Dow +0.21%. S&P +0.41%. Nasdaq +0.62%. Crude 0.0% to $88.91. Gold -1.14% to $1803.35.

Europe: London +1.89%. Paris +2.58%. Frankfurt +2.38%.

Asia: Japan +1.76%. Hong Kong +0.71%. China -0.23%. India +1.0%.