MORNING COFFEE

Berkshire Buys Stake In GM. In a 13-F filing disclosure Warren Buffett disclosed that Berkshire Hathaway (BRK.A/BRK.B) purchased 10 million shares in GM (GM) as of March 31. The news sent GM shares higher in the after-hours trading. Additionally, the company disclosed that it purchased 1.59 million shares of Viacom (VIAB).  The filing also said that "confidential information has been omitted ... and filed separately" with the SEC. Some analysts are taking this as a sign that Buffett is accumulating a large stake in a company and doesn't want copycats to drive up the price until he's done. He had just recently done this when he was purchasing shares of IBM (IBM).  The filing also disclosed some additional adjustments to Berkshire Hathaway’s holdings. BRK.B Pre-market: 80.46 +0.25 (0.31%), GM Pre-market: 22.09 +0.67 (3.13%), VIAB close 46.99 0.00 (0.00%)

Increased Shares

Bank of New York Mellon (BK): Bought 3,813,551 shares (+213%), worth $80.6 million.

Davita (DVA): Bought 3,315,500 shares (+124%), worth $272.6 million.

Liberty Media (LMCA): Bought 1,298,600 shares (+76%), worth $137.0 million.

Wal-Mart (WMT): Bought 7,671,000 shares (+20%), worth $455.3 million. Pre-market: 59.50 +0.15 (0.25%)

DirecTV (DTV): Bought 2,651,200 shares (+13%), worth $124.5 million.

Wells Fargo (WFC): Bought 10,631,300 shares (+3%), worth $342.8 million. Pre-market: 32.49 +0.25 (0.78%)

IBM (IBM): Bought 489,769 shares (+1%), worth $97.5 million. Pre-market: 199.80 +0.76 (0.38%)

Decreased Shares

Verisk Analytics (VRSK): Sold 1,214,881 shares (-35%), worth $59.4 million.

Intel (INTC): Sold 3,750,000 shares (-33%), worth $100.8 million. Pre-market: 26.97 +0.09 (0.33%)

Dollar General (DG): Sold 860,083 shares (-19%), worth $40.4 million.

Kraft Foods (KFT): Sold 9,017,548 shares (-10%), worth $350.1 million. Pre-market: 38.90 +0.08 (0.21%)

US Bancorp (USB): Sold 100 shares (0%), worth $3,130.

Comdisco Holding (CDCO): Sold 1,218,199 shares (-100%), worth $6.27 million.

Upgrades

PepsiCo (PEP): CLSA raised their rating from Underperform to Outperform and raised their target price from $66.00 to $75.00. Pre-market: 68.19 +0.34 (0.50%)

Windstream (WIN): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $11.00 on the company. Pre-market: 9.53 +0.12 (1.28%)

Dunkin Brands (DNKN): Argus raised their rating from Hold to Buy.

Fossil (FOSL): Citigroup raised their rating from Neutral to Buy and placed a target price of $88.00 on the company. Pre-market: 74.35 +2.46 (3.42%)

ENSCO PLC (ESV): Macquarie raised their rating from Neutral to Outperform and placed a target price of $65.00 on the company.

Noble Corp (NE): Macquarie raised their rating from Neutral to Outperform and raised their target price from $39.00 to $44.00.

Transocean (RIG): Macquarie raised their rating from Underperform to Neutral and placed a target price of $53.00 on the company. Pre-market: 43.90 +0.60 (1.39%)

Downgrades

Aetna (AET): Argus lowered their rating from Buy to Hold. Pre-market: 40.70 -0.13 (-0.32%)

Patriot Coal (PCX): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $9.00 to $4.00. Pre-market: 3.76 -0.18 (-4.57%)

Baker-Hughes (BHI): JP Morgan Chase lowered their rating from Overweight to Neutral and placed a target price of $50.00 on the company. Pre-market: 40.55 -0.41 (-1.00%)

Coverage Initiated

Xylem (XYL): Atlantic Equities initiated coverage with an Overweight rating and target price of $33.00.

Patriot Coal (PCX): Imperial Capital initiated coverage with an Underperform rating and placed a target price of $2.50 on the company. Pre-market: 3.76 -0.18 (-4.57%)

Earning Reports

JC Penney (JCP): Reported EPS of -$0.25 missing estimates by -$0.17. Pre-market: 28.25 -5.07 (-15.22%)

THQ Inc. (THQI): Reported EPS of -$0.12 beating estimates by +$0.01. Pre-market: 0.650 -0.030 (-4.41%)

Abercrombie & Fitch (ANF): Reported EPS of $0.03 beating estimates by +$0.02. Pre-market: 41.75 -3.65 (-8.04%)

Chico’s FAS (CHS): Reported EPS of $0.32 beating estimates by +$0.02. Pre-market: 15.30 +0.64 (4.37%)

Deere (DE): Reported EPS of $2.61 beating estimates by +$0.07. Pre-market: 77.45 +0.83 (1.08%)

Staples (SPLS): Reported EPS of $0.30 in-line with estimates. Pre-market: 14.20 -0.55 (-3.73%)

Target (TGT): Reported EPS of $1.04 beating estimates by +$0.03. Pre-market: 56.05 +0.97 (1.76%)

Markets: 
Futures at 8:53: Dow +0.29%. S&P +0.50%. Nasdaq +0.42%. Crude -1.46% to $92.61. Gold -1.07% to $1540.50. 

Europe: London -0.20%. Paris +0.72%. Frankfurt -0.00%. 

Asia: Japan -1.12%. Hong Kong -3.19%. China -1.21%. India -1.83%.