Morning Coffee Pre-Market Wall Street News

EU Unemployment Hits Record High. Unemployment in the eurozone rose in April to a new high of 12.2% from 12.1% in March. The new number means that over 19.4 million people are unemployed. Inflation in the zone rose to an annual 1.4% in May up from 1.2% in April. The core CPI, which excluded food and energy rose more than economist had expected to 1.2% from 1%.

Netflix Added to Nasdaq 100. On June 6^th Netflix (NFLX) will be added to the Nasdaq 100 replacing Perrigo (PRGO). Shares of Netflix may rise as portfolio managers at the company to their index funds. NFLX Pre-market: 224.70 +2.04 (0.92%)

Upgrades

Canadian National Railway (CNI): JPMorgan raised their rating from Underweight to Neutral and raised their target price from $96.00 to $110.00.

Downgrades

Golar LNG Partners (GMLP): BMO Capital lowered their rating from Outperform to Sector Perform and placed a target price of $34.00 on the company.

Panera Bread (PNRA): Lazard Capital lowered their rating from Buy to Neutral. Pre-market: 191.74 -2.08 (-1.07%)

Scotts Miracle-Gro (SMG): BMO Capital lowered their rating from Market Perform to Underperform and placed a target price of $43.00 on the company.

Coverage Initiated

Boston Scientific (BSX): Wedbush initiated coverage with a Neutral rating and target price of $10.00.

Chesapeake Energy (CHK): Goldman Sachs initiated coverage with a Neutral rating and target price of $26.00. Pre-market: 22.76 +0.23 (1.02%)

CVS Caremark (CVS): Wells Fargo initiated coverage with an Outperform rating and target range of $68.00 - $72.00.

Express Scripts (ESRX): Wells Fargo initiated coverage with a Market Perform rating and target range of $64.00 - $69.00.

Jazz Pharma (JAZZ): Stifel initiated coverage with a Buy rating and target price of $80.00.

Medtronic (MDT): Wedbush initiated coverage with a Neutral rating and target price of $54.00.

St Jude Medical (STJ): Wedbush initiated coverage with an Outperform rating and target price of $57.00.

Tiffany & Co (TIF): Credit Suisse initiated coverage with an Outperform rating and target price of $89.00.

Coverage Reiterated/Price Target Changed

Guess? (GES): B. Riley & Co. reiterated their Neutral rating and raised their target price from $26.00 to $36.00. Pre-market: 31.53 +2.18 (7.43%)

Earning Reports

Guess? (GES): Reported EPS of $0.14 beating estimates by +$0.06. Pre-market: 31.53 +2.18 (7.43%)

Krispy  Kreme (KKD): Reported EPS of $0.20 beating estimates by +$0.04. Pre-market: 15.77 +1.51 (10.59%)

Lions Gate Entertainment (LGF): Reported EPS of $0.66 beating estimates by +$0.21. Pre-market: 29.10 +1.07 (3.82%)

OmniVision (OVTI): Reported EPS of $0.31 beating estimates by +$0.10. Pre-market: 18.60 +3.11 (20.08%)

Pall (PLL): Reported EPS of $0.74 beating estimates by +$0.01.

Markets: 

Futures at 7:33: Dow -0.50%. S&P -0.50%. Nasdaq -0.50%. Crude -0.78% to $92.89. Gold +0.13% to $1413.30.

Europe: London -0.91%. Paris -0.60%. Frankfurt -0.54%. 

Asia: Japan +1.37% to 13775. Hong Kong -0.41% to 22392. China -0.74% to 2301. India -2.25% to 19760. 

Morning Coffee Pre-Market Wall Street News

Japan Market Sells Off Again. For the second time in two weeks the Japanese market sold off.  In late trading the Nikkei (EWJ) fell -5.15%, bring the two week decline to over -14%. Traders point to fears that the Fed will end its QE program as well as the falling dollar-yen (FXY) as the cause of the volatility. (FXY) Pre-market: 96.79 +0.01 (0.01%)

Upgrades

Diamond Offshore (DO): JPMorgan raised their rating from Neutral to Overweight and placed a target price of $82.00 on the company.

Noble Corp (NE): Raymond James raised their rating from Market Perform to Outperform and placed a target price of $52.00 on the company.

Northrop Grumman (NOC): Goldman Sachs raised their rating from Neutral to Buy.

Republic Services (RSG): Wedbush raised their rating from Neutral to Outperform and raised their target price from $33.00 to $40.00.

SunPower (SPWR): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $13.00 to $18.00. Pre-market: 20.33 +0.69 (3.51%)

First Solar (FSLR): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $64.00 on the company.

Downgrades

Noble Corp (NE): JPMorgan lowered their rating from Overweight to Neutral and placed a target price of $43.00 on the company.

Stanley Black & Decker (SWK): Argus lowered their rating from Buy to Hold and placed a target price of $78.00 on the company.

Coverage Initiated

AT&T (T): BMO Capital initiated coverage with a Market Perform rating and placed a target price of $34.00 on the company.

Leap Wireless (LEAP): BMO Capital initiated coverage with an Underperform rating and placed a target price of $3.00 on the company.

Pfizer (PFE): Sun Trust initiated coverage with a Reduce rating.

Sprint Nextel (S): BMO Capital initiated coverage with an Outperform rating and placed a target price of $9.00 on the company.

Verizon Communications (VZ): BMO Capital initiated coverage with an Outperform rating and placed a target price of $55.00 on the company.

Coverage Reiterated/Price Target Changed

SEI Investments (SEIC): Stifel reiterated their Buy rating and raised their target price from $31.00 to $33.00.

Earning Reports

Big Lots (BIG): Reported EPS of $0.61 in-line with estimates. Pre-market: 34.90 -3.48 (-9.07%)

Costco (COST): Reported EPS of $1.04 beating estimates by +$0.01. Pre-market: 113.92 +0.97 (0.86%)

Joy Global (JOY): Reported EPS of $1.73 beating estimates by +$0.16. Pre-market: 54.82 -0.26 (-0.47%)

Tilly's (TLYS): Reported EPS of $0.08 beating estimates by +$0.01.

Markets: 
Futures at 8:31: Dow +0.24%. S&P +0.19%. Nasdaq +0.06%. Crude -0.58% to $92.60. Gold +1.02% to $1405.50.

Europe: London +0.17%. Paris +0.72%. Frankfurt +0.54%. 

Asia: Japan -5.15% to 13589. Hong Kong -0.31% to 22484. China -0.27% to 2318. India +0.34% to 20215. 

Morning Coffee Pre-Market Wall Street News

Shineway in Talks with Smithfield Foods. China based Shineway has been reported to be in talks with Smithfield Foods (SFD) to purchase the company in a deal worth $4.5-5 billion. The acquisition if completed would represent a 25-30% premium over Smithfield's close yesterday of $25.97. Pre-market: 32.34 +6.37 (24.53%)

Upgrades

Analog Devices (ADI): Citigroup raised their rating from Neutral to Buy and raised their target price from $48.00 to $54.00. Pre-market: 45.60 +0.12 (0.26%)

Microchip Tech (MCHP): Citigroup raised their rating from Neutral to Buy and raised their target price from $39.00 to $47.00.

Peugot SA (PEUGY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

Brocade (BRCD): Morgan Stanley lowered their rating from Equal Weight to Underweight and placed a target price of $4.50 on the company. Pre-market: 5.25 -0.13 (-2.42%)

Comerica (CMA): Wunderlich lowered their rating from Buy to Hold and placed a target price of $40.00 on the company.

Coverage Initiated

Flagstar Bancorp (FBC): BTIG initiated coverage with a Buy rating and target price of $18.00.

SeaWorld Entertainment (SEAS): Lazard Capital initiated coverage with a Neutral rating. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): Macquarie initiated coverage with an Outperform rating and target price of $44.00. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): KeyBank initiated coverage with a Buy rating and target price of $45.00. Pre-market: 37.00 -0.71 (-1.88%)

SeaWorld Entertainment (SEAS): JPMorgan initiated coverage with a Neutral rating and target price of $41.00. Pre-market: 37.00 -0.71 (-1.88%)

Earning Reports

Bank of Montreal (BMO): Reported EPS of $1.46 missing estimates by -$0.04. Pre-market: 60.70 -0.51 (-0.83%)

Brown Shoes (BWS): Reported EPS of $0.32 beating estimates by +$0.10.

Chico's FAS (CHS): Reported EPS of $0.32 missing estimates by -$0.04. Pre-market: 18.18 -1.16 (-6.00%)

Movado Group (MOV): Reported EPS of $0.28 beating estimates by +$0.06.

Trina Solar (TSL): Reported EPS of -$0.90 missing estimates by -$0.16.

Wet Seal (WTSL): Reported EPS of $0.03 beating estimates by +$0.03. Pre-market: 4.66 +0.16 (3.56%)

Markets: 
Futures at 8:30: Dow -0.39%. S&P -0.54%. Nasdaq -0.45%. Crude -0.69% to $94.35. Gold +0.66% to $1388.10.

Europe: London -1.47%. Paris -1.22%. Frankfurt -1.42%. 

Asia: Japan +0.10% to 14326. Hong Kong -1.61% to 22555. China +0.12% to 2324. India -0.07% to 20148. 

Morning Coffee Pre-Market Wall Street News

Berkshire Hathaway Followers Ready for Pilgrimage.  Hordes of Warren Buffett followers are ready to descend on Berkshire Hathaway Inc. shareholders meeting this weekend. Prior to the meeting the company is expected to release their quarterly results. Wall Street analysts expect the company to report EPS of $1,995.50 per Class A share according to Thomson Reuters. One year ago for the same quarter the company reports EPS of $1,966. On Saturday Chairman Warren Buffett and Vice Chairman Charlie Munger will speak to the thousands of followers on topics ranging from the company’s performance, to the economy and general investing. Reports say that Hedge-fund manager Doug Kass will grill Buffett about Berkshire’s business. Kass is short Berkshire, meaning he expects the shares to fall in price. In a statement Kass said “My challenge is to ask some original questions, some that have never been asked, that might divulge new news and give people some insight.”

Upgrades

Hewlett-Packard (HPQ): Jefferies raised their rating from Underperform to Hold and raised their target price from $18.50 to $24.00. Pre-market: 23.18 +1.95 (9.19%)

Pacific Sunwear (PSUN): Wedbush raised their rating from Underperform to Neutral and raised their target price from $2.00 to $3.75. Pre-market: 3.20 +0.28 (9.59%)

Pacific Sunwear (PSUN): Topeka raised their rating from Hold to Buy and placed a target price of $4.50 on the company. Pre-market: 3.20 +0.28 (9.59%)

Seagate Tech (STX): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $40.00 to $46.00. Pre-market: 42.03 -0.14 (-0.33%)

Downgrades

Blue Nile (NILE): RBC Capital lowered their rating from Outperform to Sector Perform and maintained a target price of $36.00 on the company. Pre-market: 33.55 -1.02 (-2.95%)

Comerica (CMA): Susquehanna lowered their rating from Neutral to Negative and placed a target price of $30.00 on the company.

Devon Energy (DVN): JPMorgan lowered their rating from Overweight to Neutral and lowered their target price from $62.50 to $61.50. Pre-market: 58.00 -1.15 (-1.94%)

E.I. DuPont de Nemours (DD): BGC Partners lowered their rating from Hold to Sell and placed a target price of $50.00 on the company. Pre-market: 54.97 -0.60 (-1.08%)

Coverage Initiated

Chipolte Mexican Grill (CMG): Credit Suisse initiated coverage with a Neutral rating and target price of $360.00. Pre-market: 368.00 -3.05 (-0.82%)

Johnson & Johnson (JNJ): Credit Suisse initiated coverage with an Underperform rating and target price of $73.0. Pre-market: 87.19 -1.27 (-1.44%)

NVIDIA (NVDA): Topeka initiated coverage with a Hold rating and target price of $15.00. Pre-market: 14.15 -0.25 (-1.74%)

Earning Reports

Advance Auto (AAP): Reported EPS of $1.65 beating estimates by +$0.03. Pre-market: 86.15 +0.35 (0.41%)

Children’s Place (PLCE): Reported EPS of $0.83 beating estimates by +$0.22. Pre-market: 53.00 +1.53 (2.97%)

Dollar Tree (DLTR): Reported EPS of $0.59 beating estimates by +$0.02. Pre-market: 49.60 +1.23 (2.54%)

Hormel Foods (HRL): Reported EPS of $0.46 missing estimates by -$0.03.

Kirklands (KIRK): Reported EPS of $0.10 beating estimates by +$0.05.

Paterson Companies (PDCO): Reported EPS of $0.62 in-line with estimates. Pre-market: 37.22 -1.78 (-4.56%)

Perry Ellis (PERY): Reported EPS of $0.62 beating estimates by +$0.03.

Polo Ralph Lauren (RL): Reported EPS of $1.41 beating estimates by +$0.11. Pre-market: 180.51 -7.55 (-4.01%)

Toro (TTC): Reported EPS of $1.32 beating estimates by +$0.15.

Toronto-Dominion Bank (TD):  Reported EPS of $1.92 in-line with estimates.

Markets: 
Futures at 8:06: Dow -0.79%. S&P -0.95%. Nasdaq: -0.93%. Crude -1.47% to $92.89. Gold +1.86% to $1393.00.

Europe: London -1.80%. Paris -2.50%. Frankfurt -2.65%. 

Asia: Japan: -6.80% to 14564. Hong Kong -2.54% to 22669. China -1.16% to 2276. India -1.93% to 19674. 

Morning Coffee Pre-Market Wall Street News

S&P 500 Forecasts raised by Goldman. Goldman Sachs announced that they have raised their forecast S&P 500.  The firm now expects the index to rise 5% by year-end to 1,750. Analysts expectations for 2014 is now an increase of 9% to 1,900 and for 2015 a return of 10% to 2,100. The reason for the increase is expectations of an improving GDP with P/E’s increasing to 16x. Additionally, the firm said dividends should rise 30% over the next two years. Pre-market: 167.03 +0.06 (0.04%)

Upgrades

Blackrock (BLK): Macquarie raised their rating from Neutral to Outperform and raised their target price from $253.00 to $315.00.

Con-way (CNW): Wunderlich raised their rating from Hold to Buy and raised their target price from $37.00 to $45.00.

Downgrades

Breazer Homes (BZH): Sterne Agee lowered their rating from Buy to Neutral. Pre-market: 22.50 -0.23 (-1.01%)

Carnival Corp (CCL): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target price range from $39.00 - $41.00 to $34.00 - $36.00. Pre-market: 32.55 -2.77 (-7.84%)

Carnival Corp (CCL): William Blair lowered their rating from Outperform to Market Perform. Pre-market: 32.55 -2.77 (-7.84%)

Carnival Corp (CCL): UBS lowered their rating from Buy to Neutral and lowered their target price from $38.00 to $36.00. Pre-market: 32.55 -2.77 (-7.84%)

Coverage Initiated

Aetna (AET): Goldman Sachs initiated coverage with a Buy rating and target price of $68.00.

Sony Corp (SNE): Jefferies initiated coverage with a Buy rating.

Earning Reports

AutoZone (AZO): Reported EPS of $0.32 beating estimates by +$0.06.

Best Buy (BBY): Reported EPS of $0.32 beating estimates by +$0.06. Pre-market: 26.53 -0.28 (-1.04%)

Dick’s Sporting Goods (DKS): Reported EPS of $0.48 in-line with estimates. Pre-market: 52.00 -0.21 (-0.40%)

Home Depot (HD): Reported EPS of $0.83 beating estimates by +$0.07. Pre-market: 79.50 +2.74 (3.57%)

Medtronic (MDT): Reported EPS of $1.10 beating estimates by +$0.08. Pre-market: 52.00 +2.11 (4.23%)

Urban Outfitters (URBN): Reported EPS of $7.27 beating estimates by +$0.03. Pre-market: 43.35 -1.14 (-2.56%)

Markets: 
Futures at 7:00: Dow +0.02%. S&P -0.09%. Nasdaq -0.05%. Crude -0.27% to $96.45. Gold -0.32% to $1380.00.

Europe: London +0.17%. Paris -0.36%. Frankfurt -0.32%. 

Asia: Japan +0.13% to 15381. Hong Kong -0.54% to 23366. China +0.22% to 2305. India -0.56% to 20111.