Morning Note (Tyler)...

Futures -90bps this morning following Europe down on increased sovereign debt concerns.  Greece’s deficit is no longer the only problem lingering in the EU.  As Adrian Van Den Bok noted earlier this morning, the world is watching the “STUPIDS” (Spain, Turkey, UK/Ukraine, Portugal, Ireland & Dubai).  CDS spreads are widening to all-time highs in those countries, as investors ignore typical head-fakes and jawboning from the EU in regards to paring down their budget deficits.  Dennis Gartman believes there is no-way out of the “rabbit hole” in Europe, unless they start injecting some monetary steroids (a.k.a. printing Euros).  Gartman is holding Gold in Euro terms as he believes there is more pain to come overseas, while the US dollar could appreciate from its oversold levels.   The ECB’s Trichet said interest rates are “appropriate” this morning, signaling there are no immediate plans to tighten policy. 

CSCO reported a good quarter after the bell last night and is trading up 3%.  V trading up 2.3% after earnings.  Jobless claims and continuing claims came in worse than expected and sold the S&P down a quick -.5%.  In other news, US banks received a windfall of $56.2 bln of interest income on behalf of the Fed’s low borrowing costs.

V upgraded to Overweight at Barclays... DBD upgraded to Outperform at RW Baird... QSFT upgraded to Overweight at Thomas Weisel... BRCM upgraded to Buy at Brigantine... ARNA upgraded to Market Perform at Rodman & Renshaw... MET upgraded to Outperform at Keefe Bruyette...... AFFX upgraded to Neutral at JP Morgan... PFS upgraded to Buy at Janney Montgomery...DOWNGRADES:  CREE downgraded to Neutral at Merriman... AIXG downgraded to Neutral at Merriman... ZION downgraded to Underperform  at Keefe Bruyette... DBTK downgraded to Market Weight at Thomas Weisel... MWW downgraded to Sell at Deutsche Bank... WU downgraded to Neutral at BofA/Merrill... ESI downgraded to Neutral at BofA/Merrill... COCO downgraded to Neutral at BofA/Merrill...WU downgraded to Neutral at Goldman... ACOR downgraded to Neutral at RW Baird

Asia lower overnight.  Europe down -1% across the board.  Oil -1%.  Gold -50bps.  USD +25bps.   

Brightpoint News: 

Brightpoint PreMarket (yest close/premkt/% change/volume):

S&P 500 PreMarket (last/% change prior close/volume): 

ABERCROMBIE & FI        31.9600   34.44  +7.76%

MASTERCARD INC-A       247.5800  231.88 -6.34%

SNAP-ON INC                 42.9300 45.0000 +4.82%

AKAMAI TECH                26.5000   25.30  -4.53%

MACY'S INC                   16.2400   16.91  +4.13%

MONSTER WORLDWID    16.4200   15.75  -4.08%

STARWOOD HOTELS      35.4400   36.61  +3.3 %

EQUIFAX INC                 33.0400   32.00  -3.15%

TARGET CORP               50.6000   49.16  -2.85%

GAP INC/THE                 19.0200   19.56  +2.84%

ZIONS BANCORP            18.6200   18.10  -2.79%

KELLOGG CO                  55.1900   53.73  -2.65%

MEDTRONIC INC             44.0000   42.85  -2.61%

LENNAR CORP-CL A        16.2600   15.85  -2.52%

JUNIPER NETWORKS       25.3300  25.95   +2.45%

KEYCORP                       7.4100    7.23    -2.43%

MEMC ELEC MATER        13.6300   13.30  -2.42%

Today’s Trivia:  What is the only place in Britain that the Queen is prohibited by law from entering?

Yesterday's Answer:  The television was invented in Rigby, Idaho in 1922.

Best Quotes:  “Just like yesterday we have seen a sprinkling of vanilla demand on weakness albeit no true conviction. I found this tidbit interesting from Visa.  Fueled by a growing preference for debit cards, helped Visa and No. 2 payment processor MasterCard Inc. weather the recession even as the US unemployment rate neared 10 percent. The company has said that debit cards comprise about 70 percent of its US transactions. Consumers still like plastic but only when it is directly tied to their bank account - in other words, money they actually have. ” –MLCO Trader