MORNING COFFEE

Jobless Claims Still Mounting. Jobless claims came in at 414,000 well ahead of the 400,000 that economist had expected.  The four-week average, a less volatile measure, increased for the third straight week to 414,750.  Additionally continuing claims came in higher than expected at 3,717,000.  This comes just before President Obama’s speech tonight which will outline his jobs plan.  Leaks ahead of the speech say he will outline a $300 to $400 billion stimulus package with the hopes it will do something to increase job growth.  Many economists are skeptical, since say he will call for extensions of the payroll tax cut and long-term unemployment benefits, and money for public works projects which have already been tried without success.

Upgrades

Cisco Systems (CSCO): Auriga raised their rating from Hold to Buy and raised their target price from $16.00 to $20.00. Pre-market: 15.89 +0.01 (0.06%)

ENSCO PLC (ESV): CLSA raised their rating from Outperform to Buy and placed a target price of $60.00 on the company.

Coverage Initiated

Celgene (CELG): BMO Capital initiated coverage with an Outperform rating and target price of $90.00.

Microsoft (MSFT): Nomura initiated coverage with a Buy rating and target price of $32.00. Pre-market: 26.00 0.00 (0.00%)

Earnings

Smithfield Foods (SFD): Reported EPS of $0.69 beating estimates by +$0.02. Pre-market: 22.20 +0.08 (0.36%)

Markets: 
Futures at 8:56: Dow -0.60%. S&P -0.72%. Nasdaq -0.82%. Crude -0.21% at $89.16. Gold +2.24% to $1858.70. 

Europe: London +0.7%. Paris +0.7%. Frankfurt +0.9%. 

Asia: Japan +0.3% to 8793. Hong Kong -0.7% to 19913. China -0.7% to 2499. India +0.6% to 17166. 

MORNING COFFEE

President Obama to Announce Jobs Plan. President Obama is scheduled to announce his job-creation program, which many are calling more of the same failed policies. The stimulus plan will cost $300 billion and come in the form of tax cuts, infrastructure spending and direct aid to state and local governments.  Additionally, the plan will call for raising taxes in later years to reduce the deficit along with spending and entitlement cuts as well.

Upgrades

Chevron (CVX): CLSA raised their rating from Buy to Outperform and placed a target price of $120.00 on the company. Pre-market: 96.74 +1.13 (1.18%)

Capital One (COF): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $55.00 on the company.

Las Vegas Sands (LVS): Goldman Sachs raised their rating from Neutral to Buy and placed a target price of $52.00 on the company. Pre-market: 47.20 +1.35 (2.94%)

Downgrades

Goldman Sachs (GS): Oppenheimer lowered their rating from Outperform to Perform and placed a target price of $173.00 on the company. Pre-market: 105.50 +0.94 (0.90%)

KKR (KKR): Oppenheimer lowered their rating from Outperform to Perform.

Blackstone (BX): Oppenheimer lowered their rating from Outperform to Perform and placed a target price of $21.00 on the company.

Anheuser-Busch InBev (BUD): Glodman Sachs lowered their rating from Buy to Neutral. Pre-market: 52.89 0.00 (0.00%)

Coverage Initiated

Footlocker (FL): Canaccord initiated coverage with a Buy rating and target price of $28.00.

Nike (NKE): Canaccord initiated coverage with a Hold rating and target price of $96.00. Pre-market: 84.43 +0.67 (0.80%)

Lockheed Martin (LMT): Lazard Capital initiated coverage with a Neutral rating.

Coverage Reiterated/Price Target Changed 

Wells Fargo (WFC): Oppenheimer reiterated their Outperform rating and lowered their target price from $38.00 to $32.00. Pre-market: 24.34 +0.42 (1.76%)

Morgan Stanley (MS): Oppenheimer reiterated their Outperform rating and lowered their target price from $29.00 to $27.00. Pre-market: 15.70 +0.37 (2.41%)

Citigroup (C): Oppenheimer reiterated their Outperform rating and lowered their target price from $56.00 to $45.00. Pre-market: 28.36 +0.66 (2.38%)

JPMorgan Chase (JPM): Oppenheimer reiterated their Outperform rating and lowered their target price from $62.00 to $51.00. Pre-market: 34.16 +0.72 (2.15%)

Earning Reports

Navistar (NAV): Reported EPS of $0.79 missing estimates by -$0.47. Pre-market: 39.00 +0.20 (0.52%)

Talbots (TLB): Reported EPS of -$0.51 missing estimates by -$0.06. Pre-market: 2.38 -0.15 (-5.93%)

Markets

Futures at 7:53: Dow +0.93%. S&P +1.02%. Nasdaq +1.17%. Crude +1.34% to $87.19. Gold -1.92% to $1837.50. 

Europe: London +1.87%. Paris +2.18%. Frankfurt +2.74%. 

Asia: Japan +2.01% to 8763. Hong Kong +1.71% to 20048. China +1.84% to 2516. India +1.20% to 17065.