MORNING COFFEE

Housing Bailout To Be Announced.  President Obama is scheduled today to announce an overhaul of the HARP program.   The overhaul will make it easier for homeowners that are underwater to refinance their mortgages. The changes will allow borrowers to refinance into low interest loans regardless of how far their homes have dropped in value, which eliminates previous limits. The overhaul also streamlines the refinancing process for homeowners who are up to date on their payments. The White House believes the new rules will allow up to 1 million borrowers to refinance.  Prior to the changes approximately only 106,000 homeowners had taken advantage of the HARP program.

Upgrades

Xilinx (XLNX): Pacific Crest raised their rating from Sector Perform to Outperform and placed a target price of $40.00 on the company. Pre-market: 30.74 +0.52 (1.72%)

FedEx (FDX): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $100.00 on the company. Pre-market: 80.00 +0.66 (0.83%)

Downgrades

Teva  (TEVA): Piper Jaffray lowered their rating from Overweight to Neutral and lowered their target price from $63.00 to $45.00. Pre-market: 38.85 -0.31 (-0.79%)

Coverage Initiated

News Corp (NWSA): Susquehanna initiated coverage with a Neutral rating and target price of $20.00.

Coverage Reiterated/Price Target Changed

Genesco (GCO): Avondale reiterated their Market Perform rating and raised their target price from $61.00 to $64.00.

PETsMART (PETM): Oppenheimer reiterated their Outperform rating and raised their target price from $49.00 to $58.00.

Amazon.com (AMZN): Oppenheimer reiterated their Outperform rating and raised their target price from $250.00 to $270.00. Pre-market: 236.08 +1.30 (0.55%)

Air Products (APD): Ticonderoga reiterated their Buy rating and lowered their target price from $110.00 to $100.00.

Honeywell (HON): FBR Capital reiterated their Buy rating and raised their target price from $57.00 to $59.00. Pre-market: 51.25 -0.03 (-0.06%)

Earning Reports

Caterpillar (CAT): Reported EPS of $1.71 beating estimates by +$0.07. Pre-market: 91.64 +4.25 (4.86%)

Eaton (ETN): Reported EPS of $1.08 in line with estimates. Pre-market: 42.00 -0.25 (-0.59%)

Kimberly-Clark (KMB): Reported EPS of $1.26 in line with estimates. Pre-market: 72.30 -0.70 (-0.96%)

V.F. Corp (VFC): Reported EPS of $2.87 beating estimates by +$0.29. Pre-market: 138.07 +5.38 (4.05%)

Markets: 
Futures at 7:35: Dow +0.10%. S&P +0.13%. Nasdaq +0.04%. Crude +0.42% to $87.77. Gold +1.55% to $1660.50. 

Europe: London +0.48%. Paris +0.18%. Frankfurt +0.33%. 

Asia: Japan +1.90% to 8844. Hong Kong +4.14% to 18772. China +2.29% to 2370. India +0.92% at 16939.