MORNING COFFEE

Financial Reform Bill Passes. Democrats in the senate put together the 60 votes needed to pass the financial reform bill.  The next step is for President Obama to sign the bill into law. The law will mark the biggest expansion of government power over banks and markets since the Great Depression. Many are still questioning why the law will not address reform of both Fannie Mae and Freddie Mac, since they were one of the major causes of the financial meltdown and housing collapse.

Apple to Address iPhone Issues. Apple (AAPL) is scheduled to have a news conference today regarding the company’s new iPhone 4.  The new phone has been plagued with bad reception issue and Consumers Reports said they could not recommend buying the phone.

Downgrades

BP (BP): Standpoint Research lowered their rating from Buy to Hold.

Alliant Energy (LNT): Wunderlich lowered their rating from Buy to Hold and maintained their target price of $36.00.

Coverage Initiated

Vodafone PLC (VOD): Jefferies initiated coverage with a Buy.

MGM Resorts (MGM): Jefferies initiated coverage with a Hold and target price of $10.00.

Wynn Resorts (WYNN): Jefferies initiated coverage with a Hold and target price of $94.00.

Time Warner Cable (TWC): Kaufman Bros initiated coverage with a Buy and target price of $66.00

Coverage Resumed

Goldman Sachs (GS): Oppenheimer resumed coverage with an Outperform rating and target price of $213.00.

Coverage Reiterated/Price Target Changed

Advanced Micro (AMD): Wedbush reiterated their Neutral rating and lowered their target price from $9.00 to $8.00.

Google (GOOG): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $675.00 to $600.00.

JP Morgan Chase (JPM): RBC Capital Markets reiterated their Outperform rating and raised their target price from $45.00 to $47.00.

Amazon.com (AMZN): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $172.00 to $169.00.

Earning Reports

Advanced Micro Devices (AMD): Reported Q2 EPS of $0.11 beating estimates by +$0.05 on revenue of $1.7 million. 

Google (GOOG): Reported Q2 EPS of $6.45 missing estimates by -$0.07 on revenue of $5 billion.

Bank of America (BAC): Reported Q2 EPS of $0.27 beating estimates by +$0.05 on revenue of $29.4 billion.

Cititgroup (C): Reported Q2 EPS of $0.09 beating estimates by +$0.04 on revenues of $22.1 billion.

General Electric (GE): Reported Q2 EPS of $0.30 beating estimates by +$0.03 on revenue of $37.4 billion.

·         Futures: Dow +0.1%. S&P +0.2%. Nasdaq +0.2%. Crude -0.1% to $76.55. Gold -0.2% to $1205.40.

·         Asia: Japan -2.9% to 9408. Hong Kong 0.0% at 20250. China 0.0% at 2424. India +0.3% to 17956.

·         Europe: London +1.0%. Paris +0.8%. Frankfurt +0.7%.