MORNING COFFEE

Ford Offers Pension Buyout. For the first time Ford (F) is offering its former white-collar salaried retirees a lump-sum pension buyout offer. The offer is an attempt to reduce its underfunded $74 billion global pension liability.  Currently the plan is $15.4 billion short. 

98,000 salaried retirees and former white-collar workers will be eligible for the buyout which will be based on interest rates, life expectancy and actuarial tables the federal government uses to calculate pension obligations. 

Retirees have already begun receiving letters letting them know they are eligible for the lump-sum option.  By summer's end, 12,000 to 15,000 randomly selected workers will receive a second letter outlining the exact offers. The rest will be rolled out during the next 12 months. Upon receiving the second letter retirees will have 90 days to decide once they receive the offer.

Rick Paler President of RL Paler Investment Advisors, LLC a wealth management firm with offices in California and Michigan said “These retirees face a very big decision which cannot be taken lightly.” He went on to say “One needs to take into consideration the spousal benefits, tax implications, and estate ramifications.”  He recommends speaking to a qualified wealth manager or a CPA before making any decisions.

Upgrades

Facebook (FB): Bernstein raised their rating from Underperform to Market Perform and placed a target range of $23.00 to $25.00 on the company.

Downgrades

Dow Chemical (DOW): Argus lowered their rating from Buy to Hold. Pre-market: 28.70 -0.14 (-0.49%)

Las Vegas Sands (LVS): Argus lowered their rating from Buy to Hold. Pre-market: 37.13 -0.41 (-1.09%)

Coach (COH): Jefferies lowered their rating from Buy to Hold and lowered their target price from $92.00 to $55.00. Pre-market: 49.46 -11.12 (-18.36%)

Coach (COH): Piper Jeffray lowered their rating from Overweight to Neutral and lowered their target price from $80.00 to $67.00. Pre-market: 49.46 -11.12 (-18.36%)

Coverage Initiated

DirecTV (DTV): Jefferies initiated coverage with a Buy rating and target price of $59.00. Pre-market: 49.26 -0.07 (-0.14%)

DISH Network (DISH): Jefferies initiated coverage with a Hold rating and target price of $31.00. Pre-market: 30.63 -0.49 (-1.57%)

Earning Reports

Cirrus Logic (CRUS): Reported EPS of $0.22 beating estimates by +$0.01. Pre-market: 35.90 +6.06 (20.31%)

Eastman Chemical (EMN): Reported EPS of $1.40 beating estimates by +$0.10.

Aetna (AET): Reported EPS of $1.31 beating estimates by +$0.06. Pre-market: 38.49 +1.35 (3.63%)

Archer-Daniels (ADM): Reported EPS of $0.38 missing estimates by -$0.23. Pre-market: 26.13 -1.36 (-4.95%)

Coach (COH): Reported EPS of $0.86 beating estimates by +$0.01. Pre-market: 49.46 -11.12 (-18.36%)

Delphi Automotive (DLPH): Reported EPS of $1.01 beating estimates by +$0.10. Pre-market: 29.00 +1.01 (3.61%)

Fresh Del Monte (FDP): Reported EPS of $1.01 beating estimates by +$0.12. Pre-market: 24.31 -0.03 (-0.14%)

Pfizer (PFE): Reported EPS of $0.62 beating estimates by +$0.08. Pre-market: 23.92 +0.21 (0.89%)

Teleflex (TFX): Reported EPS of $1.23 beating estimates by +$0.13.

U.S. Steel (X): Reported EPS of $0.69 beating estimates by +$0.21. Pre-market: 19.33 +0.41 (2.17%)

Markets: 
Futures at 7:00: Dow +0.25%. S&P +0.2%. Nasdaq +0.3%. Crude +0.2% to $89.92. Gold +0.2% to $1627.60.

Europe: London -0.4%. Paris +0.1%. Frankfurt +0.5%. 

Asia: Japan +0.69%. Hong Kong +1.08%. China -0.30%. India +0.54%.