MORNING COFFEE

Crisis in the EU Continues.  Yields on Spanish 10 year bonds shot up +20 bps to 6.64% and past pre-ECB LTRO levels.  The yield on the Spanish bonds surged after Egan Jones downgraded the country's debt to junk status and there were reports that the ECB would not come to the rescue of the Spanish bank Bankia. 

In Italy the 10 year bond also soared +23 bps driving the yield above 6% following a poor auction.  The Italian government auctioned off€5.73B of five and ten-year paper vs. a target of €6.25B with yields of 5.66% and 6.03% respectively.

The New York Times is reporting that Greece's €130 billion in bailout funds are mostly being used to pay the interest on the country's debt. This means that the bailout money coming from Troika is going right back to it.

Upgrades

Jack In The Box (JACK): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $32.00 on the company.

American International Group (AIG): Sandler O’Neil raised their rating from Hold to Buy and placed a target price of $35.00 on the company. Pre-market: 29.83 +0.05 (0.17%)

Research In Motion (RIMM): JMP Securities raised their rating from Underperform to Market Perform. Pre-market: 10.06 -1.17 (-10.42%)

LinkedIn (LNKD): Citigroup raised their rating from Neutral to Buy and placed a target price of $125.00 on the company. Pre-market: 10.06 -1.17 (-10.42%)

Downgrades

Nokia (NOK): MKM Partners lowered their rating from Neutral to Sell and placed a target price of $2.00 on the company. Pre-market: 2.82 -0.13 (-4.41%)

Pilgrim’s Pride (PPC): BB&T lowered their rating from Buy to Hold. Pre-market: 8.14 -0.42 (-4.91%)

Coverage Initiated

Allscripts Healthcare (MDRX): Wells Fargo initiated coverage with a Market Perform rating and target range of $11.00-$12.00.

Ciena (CIEN): Needham initiated coverage with a Buy rating and target price of $16.00. Pre-market: 12.20 -0.14 (-1.13%)

Marriott (MAR): MLV & Co initiated coverage with a Hold rating and target price of $41.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): ISI Group reiterated their Buy rating and raised their target price from $525.00 to $650.00. Pre-market: 569.00 -3.27 (-0.57%)

Earning Reports

Jos. A. Bank (JOSB): Reported EPS of $0.53 missing estimates by -$0.09.

The Fresh Market (TFM): Reported EPS of $0.40 beating estimates by +$0.05. Pre-market: 51.00 +2.14 (4.38%)

Yingli Green Energy (YGE): Reported EPS of -$0.24 missing estimates by -$0.03.

Markets: 
Futures at 8:31: Dow -0.83%. S&P -0.84%. Nasdaq -0.72%. Crude -1.64% to $89.26. Gold -0.15% to $1546.30. 

Europe: London -1.54%. Paris -1.58%. Frankfurt -1.11%.

Asia: Japan -0.28%. Hong Kong -1.92%. China -0.21%. India -0.77%.