MORNING COFFEE

Eurozone Economy Getting Worse. 

The eurozone jobless rate rose to a new euro-era high of 10.9% from 10.8% in February. Greece and Spain had the highest unemployment at well over 20%. The manufacturing PMI figure for April fell to 45.9 from 47.7 in March.  A reading under 50 indicates contraction in the economy.

Upgrades

Con-way (CNW): Stephens raised their rating from Equal weight to Overweight and raised their target price from $35.00 to $41.00. Pre-market: 34.91 +2.15 (6.56%)

Genworth Financial (GNW): Bank of America/Merrill Lynch raised their rating from Underperform to Neutral. Pre-market: 6.50 +0.35 (5.69%)

Foster Wheeler AG (FWLT): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $30.00 on the company. Pre-market: 23.95 -0.04 (-0.17%)

Gap Stores (GSP): CLSA raised their rating from Buy to Outperform and raised their target price from $31.00 to $36.00.

Downgrades

Arch Coal (ACI): Howard Weil lowered their rating from Market Outperform to Market Perform and lowered their target price from $22.00 to $15.00. Pre-market: 9.23 +0.01 (0.11%)

Avon Products (AVP): Caris & Company lowered their rating from Above Average to Average. Pre-market: 19.60 -0.27 (-1.36%)

ConocoPhillips (COP): Bank of America/Merrill Lynch lowered their rating from Neutral to Underperform and placed a target price of $63.00 on the company. Pre-market: 55.78 -0.73 (-1.29%)

Coverage Initiated

Huntington Ingalls (HII): CRT Capital initiated coverage with a Buy rating and placed a target price of $51.00 on the company.

ConocoPhillips (COP): JP Morgan initiated coverage with an Overweight rating and placed a target price of $65.00 on the company. Pre-market: 55.78 -0.73 (-1.29%)

L-3 (LLL): CRT Capital initiated coverage with a Fair Value rating and placed a target price of $77.00 on the company.

Abercrombie & Fitch (ANF): Sterne Agee initiated coverage with a Neutral rating and target price of $57.00. Pre-market: 53.00 -0.02 (-0.04%)

General Dynamics (GD): CRT Capital initiated coverage with a Sell rating and placed a target price of $55.00 on the company. Pre-market: 67.10 -0.88 (-1.29%)

Lockheed Martin (LMT): CRT Capital initiated coverage with a Sell rating and placed a target price of $72.00 on the company.

Northrop Grumman (NOC): CRT Capital initiated coverage with a Sell rating and placed a target price of $50.00 on the company.

Coverage Reiterated/Price Target Changed 

Emerson (EMR): FBR Capital reiterated their Market Perform rating and lowered their target price from $54.00 to $51.00. Pre-market: 49.00 -0.18 (-0.37%)

Earning Reports

Arthur J. Gallagher (AJG): Reported EPS of $0.27 beating estimates by -$0.01.

Motorola Mobility (MMI): Reported EPS of -$0.03 missing estimates by -$0.06. Pre-market: 39.00 +0.24 (0.62%)

Nutrisystem (NTRI): Reported EPS of -$0.16 missing estimates by -$0.07. Pre-market: 11.52 +0.19 (1.68%)

WebMD Health (WWWW): Reported EPS of $0.35 beating estimates by +$0.04.

Clorox (CLX): Reported EPS of -$1.02 missing estimates by -$0.02.

Comcast (CMCSA): Reported EPS of $0.45 beating estimates by +$0.03.

CVS Caremark (CVS): Reported EPS of $0.65 beating estimates by +$0.02.

Mastercard (MA): Reported EPS of $5.36 beating estimates by +$0.09.

Time Warner (TWX): Reported EPS of $0.67 beating estimates by +$0.02.

Markets: 
Futures at 8:29: Dow -0.41%. S&P -0.47%. Nasdaq -0.51%. Crude -0.45% to $105.67. Gold -0.47% to $1654.80. 

Europe: London -0.90%. Paris +0.32%. Frankfurt -0.59%.

Asia: Japan +0.31%. Hong Kong +1.02%. China +1.76%. India -0.10%.