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

Microsoft Unveils Xbox One. Yesterday Microsoft (MSFT) unveiled the highly anticipated Xbox One calling it "the ultimate all-in-one entertainment system." The device allows usurers to instantly switch between games, live TV, movies, Skype and the internet using voice recognition and hand jesters. Xbox One also allows multi tasking such as watching TV and browsing the internet or taking a Skype call at the same time. The design is similar to set-top box and has an improved controller, improved Xbox Live UI, improved app and game loading. Switching times have been dramatically improved as you move to different application and the device has new voice and gesture controls.  Pre-market: 34.91 +0.06 (0.17%)

Upgrades

Bristol-Meyers Squibb (BMY): Citigroup raised their rating from Neutral to Buy and raised their target price from $33.00 to $55.00. Pre-market: 44.70 +0.64 (1.45%)

Cree (CREE): Sterne Agee raised their rating from Neutral to Buy and placed a target price of $72.00 on the company. Pre-market: 61.90 +2.05 (3.43%)

Volvo (VOLVY): HSBC Securities raised their rating from Underweight to Neutral.

Downgrades

Comerica (CMA): Oppenheimer lowered their rating from Perform to Underperform and placed a target price of $22.00 on the company. Pre-market: 39.00 -0.65 (-1.64%)

Dick’s Sporting Goods (DKS): BMO Capital lowered their rating from Outperform to Market Perform and placed a target price of $57.00 on the company. Pre-market: 52.34 -0.41 (-0.78%)

Research In Motion (BBRY): BNP Paribas lowered their rating from Neutral to Underperform. Pre-market: 14.59 -0.18 (-1.22%)

Soda Stream (SODA): JPMorgan lowered their rating from Overweight to Neutral. Pre-market: 63.30 -1.53 (-2.36%)

SunTrust Banks (STI): Oppenheimer lowered their rating from Outperform to Perform and placed a target price of $32.00 on the company. Pre-market: 32.15 0.00 (0.00%)

Coverage Initiated

Coca-Cola (KO): BMO Capital initiated coverage with a Market Perform rating and target price of $45.00. Pre-market: 42.54 +0.20 (0.47%)

Dr Pepper Snapple (DPS): BMO Capital initiated coverage with a Market Perform rating and target price of $48.00.

Monster Beverage (MNST): BMO Capital initiated coverage with an Outperform rating and target price of $65.00.

PepsiCo (PEP): BMO Capital initiated coverage with an Outperform rating and target price of $92.00. Pre-market: 82.64 +0.01 (0.01%)

Earning Reports

American Eagle (AEO): Reported EPS of $0.18 beating estimates by +$0.01. Pre-market: 19.96 -0.35 (-1.72%)

Analog Devices (ADI): Reported EPS of $0.52 in-line with estimates.

Compuware (CPWR): Reported EPS of -$0.30 missing estimates by -$0.35.

Dycom (DY): Reported EPS of $0.21 beating estimates by +$0.04. Pre-market: 23.89 +3.48 (17.05%)

Intuit (INTU): Reported EPS of $2.97 beating estimates by +$0.04. Pre-market: 58.64 +0.75 (1.30%)

Lowe's (LOW): Reported EPS of $0.49 missing estimates by -$0.01. Pre-market: 41.85 -0.60 (-1.41%)

NetApp (NTAP): Reported EPS of $0.69 beating estimates by +$0.01. Pre-market: 38.85 +2.22 (6.06%)

Staples (SPLS): Reported EPS of $0.26 missing estimates by -$0.01. Pre-market: 14.36 -0.39 (-2.64%)

Target (TGT): Reported EPS of $0.77 missing estimates by -$0.10. Pre-market: 69.69 -1.57 (-2.20%)

Markets: 
Futures at 7:00: Dow +0.12%. S&P +0.17%. Nasdaq +0.17%. Crude -0.93% to $95.81. Gold +0.62% to $1386.00.

Europe: London -0.16%. Paris -0.43%. Frankfurt -0.18%. 

Asia: Japan +1.60% to 15627. Hong Kong -0.45% to 23261. China -0.12% to 2302. India -0.25% to 20062. 

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. 

Morning Coffee Pre-Market Wall Street News

Tumblr Bought By Yahoo. Search engine Yahoo's (YHOO) has announced the purchase of Tumblr for $1.1 billion. Tumbler is a social media mico-blogging site for posting pictures, text and video. The company was started by high school dropout David Karp in his mother's Manhattan apartment in 2007. Karp is now just 26 years old. Tumblr says that it has over 1 million users and over 90 million post per day, but the company only generated $13 million last year. YHOO Pre-market: 26.60 +0.08 (0.30%)

Upgrades

Abbott Labs (ABT): Goldman Sachs raised their rating from Neutral to Buy and raised their rating from $38.00 to $44.00. Pre-market: 37.16 +0.57 (1.56%)

Accenture (ACN): Goldman Sachs raised their rating from Neutral to Buy and raised their rating from $72.00 to $90.00. Pre-market: 82.61 +0.37 (0.45%)

Northrop Grumman (NOC): Drexel Hamilton raised their rating from Hold to Buy and raised their target price from $70.00 to $90.00.

Northrop Grumman (NOC): CRT Capital raised their rating from Sell to Fair Value.

Downgrades

Bank of America (BAC): Keefe Bruyette lowered their rating from Outperform to Market Perform and placed a target price of $13.50 on the company. Pre-market: 13.39 -0.04 (-0.30%)

Blackrock (BLK): Keefe Bruyette lowered their rating from Outperform to Market Perform and placed a target price of $300.00 on the company.

Bed Bath & Beyond (BBBY): Jefferies lowered their rating from Buy to Hold and lowered their target price from $76.0-0 to $71.00.

Brinker International (EAT): Wells Fargo lowered their rating from Outperform to Market Perform and maintained their target range of $40.00 - $42.00.

CarMax (KMX): William Blair lowered their rating from Outperform to Market Perform. Pre-market: 48.40 -0.27 (-0.55%)

Charles Schwab (SCHW): Keefe Bruyette lowered their rating from Market Perform to Underperform and placed a target price of $16.50 on the company.

Dunkin’ Brands (DNKN): Longbow lowered their rating from Buy to Neutral. Pre-market: 41.22 -0.82 (-1.95%)

Equifax (EFX): Goldman Sachs lowered their rating from Buy to Neutral and maintained a target price of $65.00.

SanDisk (SNDK): Nomura lowered their rating from Buy to Neutral and placed a target price of $60.00 on the company. Pre-market: 59.35 -0.55 (-0.92%)

TD Ameritrade (AMTD): Keefe Bruyette lowered their rating from Market Perform to Underperform and placed a target price of $20.00 on the company.

Coverage Reiterated/Price Target Changed

Ryder System (R): FBR Capital reiterated their Outperform rating and raised their target price from $75.00 to $82.00. Pre-market: 63.90 +1.38 (2.21%)

Earning Reports
Campbell Soup (CPB): Reported EPS of $0.62 beating estimates by +$0.02. Pre-market: 48.38 +0.75 (1.57%)

Markets: 
Futures at 7:00: Dow -0.02%. S&P -0.02%. Nasdaq -0.03%. Crude -0.5% to $95.54. Gold -1.09% to $1349.00.

Europe: London -0.06%. Paris +0.24%. Frankfurt +0.42%. 

Asia: Japan +1.47% to 15360. Hong Kong +1.78% to 23493. China +0.75% to 2299. India -0.31% to 20223. 

Morning Coffee Pre-Market Wall Street News

Congress Questions Google About Glass Privacy. Reports say that several congressmen have sent a letter to Google (GOOG) questioning what privacy measures are being put into place with respects to Google Glass.  Google Glass is a smart eyewear device that allows the user to pull up information on a small screen using voice commands. A concern is the device gives the user the ability to look at a person while wearing the glasses and see that persons personal information. The letter states that the congressmen “are curious whether this new technology could infringe on the privacy of the average American” and asks that the following questions are answered in writing by June 14^th.

How Google plans to prevent Google Glass from unintentially collecting data about the user/non-user without consent;

What protective steps is Google taking to protect the privacy of non-users when Google Glass is in use;

Whether it is true the product would be able to use facial recognition technology to unveil personal information about whomever and even some inanimate objects that the user is viewing;

Whether Google has considered making additions or refinements to its privacy policy;

What information Google might collect about a user of the device, and whether it would be obtained with or without consent;

Whether Google will make privacy a priority for app developers.

Upgrades

General Motors (GM): CLSA raised their rating from Underperform to Buy and raised their target price from $31.00 to $40.00. Pre-market: 32.91 +0.52 (1.61%)

Downgrades

Applied Materials (AMAT): DA Davidson lowered their rating from Buy to Neutral and lowered their target price from $17.00 to $15.00. After Hours: 14.56 -0.10 (-0.68%)

Aruba Networks (ARUN): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 13.87 -3.74 (-21.24%)

Aruba Networks (ARUN): Needham lowered their rating from Buy to Hold. Pre-market: 13.87 -3.74 (-21.24%)

Aruba Networks (ARUN): Wedbush lowered their rating from Outperform to Neutral. Pre-market: 13.87 -3.74 (-21.24%)

Autodesk (ADSK): Pacific Crest lowered their rating from Outperform to Sector Perform. After Hours: 37.30 -2.48 (-6.23%)

Brocade (BRCD): William Blair lowered their rating from Market Perform to Underperform. Pre-market: 5.53 -0.21 (-3.66%)

Brocade (BRCD): RW Baird lowered their rating from Outperform to Neutral and placed a target price of $6.00 on the company. Pre-market: 5.53 -0.21 (-3.66%)

Deere & Co. (DE): Goldman Sachs lowered their rating from Neutral to Sell and lowered their target price from $98.00 to $95.00. Pre-market: 88.60 -0.79 (-0.88%)

Stryker (SYK): Sun Trust lowered their rating from Neutral to Reduce and lowered their target price from $56.00 to $53.00.

Walt Disney (DIS): Atlantic Equities lowered their rating from Overweight to Neutral and placed a target price of $74.00 on the company. Pre-market: 66.20 -0.27 (-0.41%)

Zimmer Holdings (ZMH): Sun Trust lowered their rating from Neutral to Reduce and lowered their target price from $66.00 to $65.00.

Coverage Initiated

McCormick (MKC): Citigroup initiated coverage with a Neutral rating and placed a target price of $77.00 on the company.

Pandora Media (P): MKM Partners initiated coverage with a Sell rating and target price of $10.00. Pre-market: 16.32 -0.16 (-0.97%)

Earning Reports

Applied Materials (AMAT): Reported EPS of $0.16 beating estimates by +$0.03. After Hours: 14.56 -0.10 (-0.68%)

Aruba Networks (ARUN): Reported EPS of $0.11 missing estimates by -$0.01. Pre-market: 13.87 -3.74 (-21.24%)

Autodesk (ADSK): Reported EPS of $0.42 missing estimates by -$0.03. After Hours: 37.30 -2.48 (-6.23%)

Brocade (BRCD): Reported EPS of $0.17 beating estimates by +$0.02. Pre-market: 5.53 -0.21 (-3.66%)

Dell (DELL): Reported EPS of $0.21 missing estimates by -$0.14. Pre-market: 13.41 -0.02 (-0.15%)

J. C. Penney (JCP): Reported EPS of -$1.31 missing estimates by -$0.35. Pre-market: 18.18 -0.61 (-3.25%)

Nordstrom (JWN): Reported EPS of $0.73 missing estimates by -$0.03. Pre-market: 58.76 -2.37 (-3.88%)

Markets: 
Futures at 7:00: Dow +0.31%. S&P +0.33%. Nasdaq +0.23%. Crude +0.48% to $95.64. Gold -0.68% to $1377.00.

Europe: London +0.34%. Paris +0.34%. Frankfurt +0.13%. 

Asia: Japan +0.67% to 15138. Hong Kong: Closed. China +1.38% to 2282. India +0.19% to 20286.