Obama to Unveil New $1.4 Trillion Budget

Obama to Unveil New $1.4 Trillion Budget. President Obama is scheduled to unveil his new $1.4T budget today that most economists say has little chance of passing Congress. The budget includes expanding the Earned Income Tax Credit to 13.5M childless workers. The 10-year $60B cost would be met by eliminating tax write-offs for self-employed professionals and investment-fund managers. The budget also includes spending $302B on highways, bridges and transit projects, and an increase in the minimum wage.

Upgrades:

Magna International (MGA): JPMorgan raised their rating from Underweight to Neutral. Pre-market: 95.09 +1.44 (1.54%)

Magna International (MGA): Goldman Sachs raised their rating from Sell to Neutral. Pre-market: 95.09 +1.44 (1.54%)

Pulte Homes (PHM): KeyBanc raised their rating from Hold to Buy and placed a target price of $26.00 on the company. Pre-market: 21.26 +0.45 (2.16%)

Downgrades:

Intuitive Surgical (ISRG): Cantor lowered their rating from Buy to Hold and maintained their target price of $450.00. Pre-market: 452.01 -1.83 (-0.40%)

Lennar (LEN): KeyBanc lowered their rating from Buy to Hold. Pre-market: 43.84 0.00 (0.00%)

McDermott (MDR): Capital One lowered their rating from Equal Weight to Underweight. Pre-market: 7.50 -0.61 (-7.52%)

Royal Caribbean (RCL): Longbow lowered their rating from Buy to Neutral. Pre-market: 51.70 +0.48 (0.94%)

Time Warner Cable (TWC): Macquarie lowered their rating from Outperform to Neutral.

USG Corp (USG): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 34.75 -0.03 (-0.09%)

WebMD (WBMD): Stifel lowered their rating from Buy to Hold. Pre-market: 41.80 -1.53 (-3.53%)

Coverage Initiated:

Advance Auto Parts (AAP): Stephens initiated coverage with an Equal Weight rating and target price of $133.00.

DeamWorks Animation SKG (DWA): Topeka initiated coverage with a Hold rating and target price of $32.00. Pre-market: 28.81 +0.31 (1.09%)

Earning Reports:

AutoZone (AZO): Reported EPS of $5.63 beating estimates by +$0.09. Pre-market: 550.00 +8.77 (1.62%)

McDermott (MDR): Reported EPS of -$1.37 missing estimates by -$1.30. Pre-market: 7.50 -0.61 (-7.52%)

Molycorp (MCP): Reported EPS of -$0.28 beating estimates by +$0.01. Pre-market: 5.21 -0.04 (-0.76%)

RadioShack (RSH): Reported EPS of -$1.29 missing estimates by -$1.16. Pre-market: 2.07 -0.65 (-23.90%)

Markets: 
Futures at 8:28: Dow +1.02%. S&P +1.00%. Nasdaq +1.05%. Crude -1.20% to $103.65. Gold -1.18% to $1334.30. U.S. 10 Year -12/32 to 2.645%.

Europe: London +1.39%. Paris +2.11%. Frankfurt +2.04%. 

Asia: Japan +0.47% to 14721. Hong Kong +0.70% to 22658. China -0.18% to 2071. India +1.26% to 21210. 

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Morning Coffee Pre-Market Wall Street News

Syria Causes World Markets to Fall. U.S. stock futures, Asia and European markets are all lower on worries that the U.S. will take military action against Syria. This comes after Sec. of State John Kerry said yesterday that Syria did use chemical weapons against its own civilian population. The U.S. military has moved both equipment and personnel into the area and now has four destroyer ships in the Mediterranean along with several nuclear-powered submarines, all within cruise-missile range. The thought of a U.S. military response has also sent the Turkish lira to a record low of 2.0299 to the dollar and oil up+2.36% to $108.38 a barrel.

Upgrades:

Gulfport Energy (GPOR): Capital One raised their rating from Add to Strong Buy and raised their target price from $79.00 to $85.00. Pre-market: 57.72 +0.12 (0.21%)

Monsanto (MON): UBS raised their rating from Neutral to Buy and maintained their target price of $110.00. Pre-market: 98.02 +0.37 (0.38%)

Downgrades:

Apache Corp (APA): Guggenheim lowered their rating from Buy to Neutral. Pre-market: 78.50 -1.23 (-1.54%)

Coverage Initiated:

Athlon Energy (ATHL): Goldman Sachs initiated coverage with a Neutral rating and placed a target price of $33.00 on the company. Pre-market: 30.00 0.00 (0.00%)

Athlon Energy (ATHL): Wells Fargo initiated coverage with an Outperform rating and placed a target range of $33.00-$36.00 on the company. Pre-market: 30.00 0.00 (0.00%)

Athlon Energy (ATHL): UBS initiated coverage with a Neutral rating and placed a target price of $31.00 on the company. Pre-market: 30.00 0.00 (0.00%)

Athlon Energy (ATHL): RBC Capital initiated coverage with an Outperform rating and placed a target price of $37.00 on the company. Pre-market: 30.00 0.00 (0.00%)

DirecTV (DTV): Raymond James initiated coverage with an Outperform rating and placed a target price of $69.00 on the company. Pre-market: 57.34 -0.15 (-0.26%)

DISH Network (DISH): Raymond James initiated coverage with an Underperform rating.

IntercontinentalExchange (ICE): Wells Fargo initiated coverage with an Outperform.

Earning Reports:

Bank of Montreal (BMO): Reported EPS of $1.68 beating estimates by +$0.14.

Brown Shoe (BWS): Reported EPS of $0.33 beating estimates by +$0.11. Pre-market: 24.75 +1.05 (4.43%)

Movado Group (MOV): Reported EPS of $0.44 beating estimates by +$0.12. Pre-market: 39.97 +1.97 (5.18%)

Regis (RGS): Reported EPS of $0.06 missing estimates by -$0.06.

Tiffany & Co (TIF): Reported EPS of $0.83 beating estimates by +$0.11. Pre-market: 82.25 +0.58 (0.71%)

Markets: 
Futures at 8:01: Dow -0.56%. S&P -0.75%. Nasdaq -0.77%. Crude +2.36% to $108.38. Gold +1.76% to $1417.70. U.S. 10 Year +9/32 2.759%

Europe: London -0.75%. Paris -1.83%. Frankfurt -1.89%. 

Asia: Japan -0.69% to 13542. Hong Kong -0.59% to 21875. China +0.34% to 2104. India -3.18% to 17968. 

Morning Coffee Pre-Market Wall Street News

U.S. Stock Futures Higher Ahead of FOMC Meeting. U.S. stock futures are higher before the opening as traders anxiously await the beginning of the FOMC meeting. The two day policy meeting is scheduled to begin today. Wall Street will be waiting for comments on the direction of the economy, interest rates and the potential winding down of the Fed’s bond buying program. Additionally, the inflation data of May is scheduled to be released today. Economists estimates are that the CPI rose +0.2% month-over-month after falling -0.4% in April, with the main driver of inflation being food and energy cost.

Upgrades:

Daimler AG (DDAIF): Natixis raised their rating from Hold to Buy.

Flir Systems (FLIR): Raymond James raised their rating from Market Perform to Strong Buy and placed a target price of $33.00 on the company.

Downgrades:

Charles River Labs (CRL): Goldman Sachs lowered their rating from Neutral to Sell. Pre-market: 42.40 -0.81 (-1.87%)

HSBC Holdings PLC (HBC): Citigroup lowered their rating from Buy to Neutral. Pre-market: 54.53 +0.74 (1.38%)

Williams Cos. (WMB): Goldman Sachs lowered their rating from Conviction Buy to Buy and placed a target price of $40.00 on the company. Pre-market: 33.00 -0.64 (-1.90%)

Coverage Initiated:

Huntington Ingalls (HII): Stifel initiated coverage with a Hold rating.

LinkedIn (LNKD): Pacific Crest initiated coverage with an Outperform rating and target price of $215.00. Pre-market: 179.21 +1.62 (0.91%)

T-Mobile U.S. (TMUS): Canaccord initiated coverage with a Hold rating and target price of $22.00.

Earning Reports:

FactSet (FDS): Reported EPS of $1.15 missing estimates by -$0.11. Pre-market: 99.01 -4.75 (-4.58%)

Korn/Ferry (KFY): Reported EPS of $0.32 beating estimates by +0.01.

Markets: 

Futures at 7:00: Dow +0.21%. S&P +0.09%. Nasdaq +0.35%. Crude -0.02% to $97.75. Gold -0.68% to $1373.90.

Europe: London +0.85%. Paris -0.05%. Frankfurt +0.05%. 

Asia: Japan -0.20% to 13007. Hong Kong 0.00% at 21226. China +0.14% to 2159. India -0.53% at 19223.