MORNING COFFEE

Spanish Bond Yields Surge. The yield on the Spanish 10-year bond surged past 6% for the first time since December raising fears the country might need a bailout. EU officials are due to travel to Washington this week looking for additional IMF funds.

Upgrades

Caterpillar (CAT): Longbow raised their rating from Neutral to Buy and placed a target price of $132.00 on the company. Pre-market: 108.25 +2.36 (2.23%)

Caterpillar (CAT): Bank of America/Merrill lynch raised their rating from Neutral to Buy and raised their target price from $127.00 to $135.00. Pre-market: 108.25 +2.36 (2.23%)

Home Depot (HD): Piper Jaffray raised their rating from Neutral to Overweight and raised their target price from $47.00 to $62.00. Pre-market: 51.41 +0.45 (0.88%)

Lowe’s Co (LOW): Piper Jaffray raised their rating from Neutral to Overweight and raised their target price from $29.00 to $41.00. Pre-market: 32.03 +0.34 (1.07%)

BASF AG (BASFY): HSBC Securities raised their rating from Neutral to Overweight.

Downgrades

Infosys (INFY): HSBC Securities lowered their rating from Overweight to Neutral. Pre-market: 48.05 -1.10 (-2.24%)

Infosys (INFY): CLSA lowered their rating from Outperform to Underperform. Pre-market: 48.05 -1.10 (-2.24%)

Transocean (RIG): Raymond James lowered their rating from Strong Buy to Market Perform. Pre-market: 48.94 +0.20 (0.41%)

Halliburton (HAL): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 32.41 0.00 (0.00%)

Magna International (MGA): Goldman Sachs lowered their rating from Neutral to Sell and lowered their target price from $49.00 to $47.00. Pre-market: 43.80 -1.60 (-3.52%)

Earning Reports

Charles Schwab (SCHW): Reported EPS of $0.15 in-line with estimates. Pre-market: 13.87 0.00 (0.00%)

Citigroup (C): Reported EPS of $0.95 missing estimates by -$0.05. Pre-market: 34.12 +0.71 (2.13%)

Mattel (MAT): Reported EPS of $0.06 missing estimates by -$0.01. Pre-market: 31.71 -2.42 (-7.09%)

Markets: 
Futures at 8:35: Dow +0.48%. S&P +0.64%. Nasdaq +0.52%. Crude +0.12% to $102.98. Gold -0.41% to $1653.00. 

Europe: London +0.94%. Paris +1.58%. Frankfurt +1.21%. 

Asia: Japan -1.74%. Hong Kong -0.44%. China -0.09%. India +0.33%.