MORNING COFFEE

Bernanke Upsets Market. Yesterday Fed Chairman Ben Bernanke gave his semi-annual monetary policy report to Congress.  His comments caused the markets to dive into negative territory. Bernanke called the economic outlook "unusually uncertain," and said the Fed is prepared to take additional actions as needed. He also said that the current policy is "already quite stimulative" and available future options "are not going to be conventional options." Bernanke sees "moderate" economic growth despite a "somewhat weaker outlook" and low inflation.

Upgrades

Wells Fargo (WFC): FBR Capital raised their rating from Market Perform to Outperform.

Downgrades

Netflix (NFLX): Canaccord Genuity lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Owens Corning (OC): Longbow reiterated their Buy rating and raised their target price from $41.00 to $42.00.

Baidu.com (BIDU): Brean Murray reiterated their Buy rating and raised their target price from $80.00 to $90.00.

Qualcomm (QCOM): FBR Capital reiterated their Outperform rating and lowered their target price from $49.00 to $47.00.

Earnings Reports

Eli Lilly (LLY): Reported Q2 EPS of $1.24 beating estimates by +$0.14 on revenue of $5.74 billion. 

Hershey Foods (HSY): Reported Q2 EPS of $0.51 beating estimates by +$0.05 on revenue of $1.23 billion.

Medco Health Solutions (MHS): Reported Q2 EPS of $0.83 beating estimates by +$0.04 revenue of $16.40 billion.

Nokia (NOK): Reported Q2 EPS of $0.11 in-line on revenue of $10 billion in-line. 

Baidu.com (BIDU): Reported Q2 EPS of $0.35 beating estimates by +$0.04 on revenue of $282 million.

eBay (EBAY): Reported Q2 EPS of $0.40 beating estimates by +$0.02 on revenue of $2.2 billion.

Qualcomm (QCOM): Reported FQ3 EPS of $0.57 beating estimates by +$0.03 on revenue of $2.7 billion.

Xilinx (XLNX): Reported FQ1 EPS of $0.58 beating estimates by +$0.05 on revenue of $595 million.

·         Futures: Dow +1.2%. S&P +1.4%. Nasdaq +1.2%. Crude +0.6% to $76.99. Gold -0.4% to $1187.60.

·          Asia: Japan -0.6% to 9221. Hong Kong +0.5% to 20590. China +1.1% to 2562. India +0.8% to 18113.

·         Europe: London +1.0%. Paris +1.8%. Frankfurt +1.6%.