MORNING COFFEE

Eurozone Sinking Deeper Into Recession. Eurozone factory activity continued to slow in April.  PMI fell to a preliminary 46 in April from 47.7 in March, missing economist estimates of 48.1. A reading below the 50 level that indicates contraction within the economy. Additionally, Spain’s economy contracted 0.4% in Q1 from the previous quarter and fell 0.5% from the year earlier period. Yields on Spanish 10-year bonds were slightly higher midday in Europe but below 6%. 

Upgrades

Suncor Energy (SU): BMO Capital raised their rating from Market Perform to Outperform and placed a target price of $39.00 on the company. Pre-market: 30.29 -0.91 (-2.92%)

BMC Software (BMC): Susquehanna raised their rating from Neutral to Positive.

Coverage Initiated

PPG Industries (PPG): JP Morgan initiated coverage with an Overweight rating and a target price of $120.00. Pre-market: 101.30 +0.01 (0.01%)

Downgrades

Forward Air (FWRD): Robert W. Baird lowered their rating from Outperform to Neutral and placed a target price of $40.00 on the company.

Progressive Corp. (PGR): Citigroup lowered their rating from Buy to Neutral and placed a target price of $22.00 on the company. Pre-market: 20.99 -0.38 (-1.78%)

Earning Reports

Check Point Software (CHKP): Reported EPS of $0.74 beating estimates by +$0.02. Pre-market: 63.50 -0.55 (-0.86%)

Eaton (ETN): Reported EPS of $0.92 beating estimates by +$0.02. Pre-market: 47.75 +0.31 (0.65%)

Hasbro (HAS): Reported EPS of $0.04 missing estimates by -$0.08.

SunTrust Bank (STI): Reported EPS of $0.46 beating estimates by +$0.12. Pre-market: 22.60 0.00 (0.00%)

Markets: 
Futures at 7:15: Dow -0.93%. S&P -1.12%. Nasdaq -0.87%. Crude -0.78% to $103.06. Gold -0.66% to $1632.00. 

Europe: London -1.84%. Paris -2.34%. Frankfurt -2.82%. 

Asia: Japan -0.20%. Hong Kong -1.84%. China -0.76%. India -1.60%.