MORNING COFFEE

Lockheed Wins Big Contract. Lockheed Martin (LMT) has won a military contract to supply 42 stealth F-35 jets to Japan for $5.33 billion. Lockheed beat out rival Boeing (BA) and the Euro Typhoon. Analysts now say that the company could now receive a contract from South Korean for 60 jets.

EU Raises Less Money Than Expected. The EU announced it raised €150 billion, €50 Billion less than analysts expected from member states to lend to the IMF to lend back to needy EU members. No contributions were made by the U.K. Additionally the Czech Republic, Denmark, Poland and Sweden made no contributions, saying they have to bring it before their parliaments first.  Spain and Italy will contribute €38.3 billion. Additionally, yesterday the ECB in its Financial Stability Report said  the risk to the eurozone's financial system have risen "substantially."

Coverage Initiated

CVS Caremark (CVS): Macquarie initiated coverage with an Outperform rating and target price from $45.00.

TJX Co. (TJX): Collins Stewart initiated coverage with a Buy rating and target price of $75.00.

Tiffany (TIF): Collins Stewart initiated coverage with a Neutral rating and target price of $72.00.

Coach (COH): Collins Stewart initiated coverage with a Neutral rating and target price of $67.00.

Downgrades

Novellus (NVLS): JP Morgan lowered their rating from Overweight to Neutral.

Owens Corning (OC): RBC Capital lowered their rating from Top Pick to Outperform and lowered their target price from $33.00 to $30.00.

Baxter International (BAX): RBC Capital lowered their rating from Top Pick to Outperform and lowered their target price from $61.00 to $58.00.

AT&T (T): JP Morgan lowered their rating from Overweight to Neutral and lowered their target price from $33.00 to $31.00.

Earning Reports

ConAgra (CAG): Reported EPS of $0.47 beating estimates by +$0.04.

General Mills (GIS): Reported EPS of $0.76 missing estimates by -$0.03.

Markets: 
Futures at 7:43: Dow +0.85%. S&P +1.03%. Nasdaq +1.19%. Crude +1.53% to $95.32. Gold +0.56% to $1605.70. 

Europe: London -0.24%. Paris +0.87%. Frankfurt +0.83%. 

Asia: Japan +0.49% to 8336. Hong Kong +0.06% to 18080. China -0.10% to 2216. India -1.33% to 15175.