MORNING COFFEE

Greek Rally Short Lived. Over the weekend the world waited as Greek citizens went to the poles.  In the end, Greece's New Democracy party won 129 seats in the 300-seat parliament.  Now they need to attempt to form a coalition.  After the election the two pro-bailout parties hold 162 seats, providing a majority of 24 over the anti-austerity and anti-bailout party, that many feared would cause Greece to leave the EU if they gained a majority.

Markets initially rose on the news, but the party was short lived as yields on Spain's 10-year bonds rose +24 bps to an unsustainable 7.11%.  The jump in yields was caused by a report that showed that non-performing loans held by the Spain's banks hit an 18-year high of 8.72% in April. In Italy yields are up +10.6 bps to 6.03%.

Upgrades

International Game Technology (IGT): CLSA raised their rating from Outperform to Buy and raised their target price from $18.00 to $18.40.

St Jude Medical (STJ): Lazard Capital raised their rating from Neutral to Buy. Pre-market: 35.99 +0.44 (1.24%)

KeyCorp (KEY): Evercore raised their rating from Underweight to Equal Weight.

Regions Financial (RF): Evercore raised their rating from Equal Weight to Overweight.

EOG Resources (EOG): UBS raised their rating from Neutral to Buy and raised their target price from $115.00 to $120.00.

Coverage Initiated

Fastenal Co. (FAST): Longbow initiated coverage with a Neutral rating.

eBay Inc. (EBAY): Keefe Bruyette initiated coverage with an Outperform rating and target price of $50.00. Pre-market: 40.86 +0.19 (0.47%)

Downgrades

Noble Corp (NE): Raymond James lowered their rating from Strong Buy to Outperform and lowered their target price from $46.00 to $40.00.

ENSCO PLC (ESV): Raymond James lowered their rating from Strong Buy to Outperform and lowered their target price from $65.00 to $56.00. Pre-market: 43.50 -0.35 (-0.80%)

City National Corp (CYN): Evercore lowered their rating from Overweight to Equal Weight.

Tractor Supply (TSCO): KeyBanc lowered their rating from Buy to Hold.

Celgene (CELG): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $74.00 to $72.00.

Markets: 
Futures at 7:19: Dow -0.27%. S&P -0.37%. Nasdaq -0.04%. Crude -0.88% to $83.29. Gold -0.26% to $1623.90. 

Europe: London +0.28%. Paris -0.10%. Frankfurt +0.61%. 

Asia: Japan +1.77%. Hong Kong +1.01%. China +0.40%. India -1.44%.