MORNING COFFEE

Unemployment Jumps to 8.2%.  The labor department reported that U.S. employers created only 69,000 jobs in May, the fewest in a year, causing the unemployment rate ticked up. Additionally, the number for March and April were also revised downward a total of 49,000 jobs.  The U.S. economy has now averaged only 73,000 new jobs over the past two months.  This is well below the 226,000 jobs created per month in the January-March quarter and well below what would be expected in a healthy economy.  The poor jobs report has caused the unemployment rate to jump to 8.2 percent from 8.1 percent in April, the first increase in 11 months.  The real unemployment rate came in at 14.8%.  The real unemployment rate includes people that can work, but stopped looking and those that are underemployed.

Upgrades

BlackRock (BLK): Goldman Sachs raised their rating from Neutral to Buy and raised their target price from $200.00 to $205.00.

Check Point Software (CHKP): Wunderlich raised their rating from Hold to Buy and placed a target price of $60.00 on the company.

Clorox (CLX): Citigroup raised their rating from Neutral to Buy and raised their target price from $72.00 to $78.00.

VMware (VMW): Mizuho raised their rating from Neutral to Buy and raised their target price from $104.00 to $107.00.

Coverage Initiated

Facebook (FB): Robert W. Baird initiated coverage with an Outperform rating and target price of $37.00.

Dycom (DY): Imperial Capital initiated coverage with an Outperform rating and target price of $24.00.

Markets: 
Futures at 8:46: Dow -1.64%. S&P -1.77%. Nasdaq -1.65%. Crude -3.25% to $83.73. Gold +1.42% to $1586.90. 

Europe: London -1.28%. Paris -2.26%. Frankfurt -3.10%. 

Asia: Japan -1.20%. Hong Kong -0.38%. China +0.05%. India -1.56% at 15965.