MORNING COFFEE

American’s Net Worth Goes Up In Smoke. According to the Federal Reserve, in a report done every 3 years, Americans saw their net worth along with their dreams go up in smoke.  The report details a shocking decline in the average net worth of U.S. households from 2007 to 2010. According to the report, American families saw their net worth drop 40% in three-years from $126,400 to $77,300.

The middle class appears to have been hit the hardest along with the poor.  The decline in their net worth basically has wiped out nearly 20 years of saving, putting their net worth on par worth levels not seen since the early 1990’s.

The report also shows that 11% of Americans were at least 60 days late paying a bill, up from 7% in 2007. Just as depressing was the fact that families with debts greater than 40% of their income stayed the same.

Not only are Americans facing significant debts, income have also fallen.  According to the report median income fell nearly 8%, from about $50,000 in 2007 to $45,800 in 2010.

Additionally with a huge wave of baby boomer about to retire, Americans retirement accounts fell in value 7% to only $44,000.  Leaving many wondering how and if they will ever be able to retire.

Upgrades

Johnson & Johnson (JNJ): Raymond James raised their rating from Market Perform to Outperform and placed a target price of $72.00 on the company. Pre-market: 63.88 +0.80 (1.27%)

Johnson & Johnson (JNJ): Jefferies raised their rating from Hold to Buy and raised their target price from $68.00 to $72.00. Pre-market: 63.88 +0.80 (1.27%)

Johnson & Johnson (JNJ): JPMorgan raised their rating from Hold to Buy and raised their target price from $69.00 to $74.00. Pre-market: 63.88 +0.80 (1.27%)

Hershey Co. (HSY): Goldman Sachs raised their rating from Buy to Conviction Buy and placed a target price of $76.00 on the company.

E*Trade Financial (ETFC): BGB Securities raised their rating from Sell to Hold and raised their target price from $7.50 to $8.50. Pre-market: 7.91 -0.05 (-0.63%)

Navistar International (NAV): JPMorgan raised their rating from Underweight to Neutral and placed a target price of $30.00 on the company. Pre-market: 27.28 +0.13 (0.48%)

Downgrades

Expedia (EXPE): Lazard Capital lowered their rating from Buy to Neutral. Pre-market: 47.85 -0.88 (-1.81%)

Royal Bank of Scotland (RBS): Credit Suisse lowered their rating from Neutral to Underperform. Pre-market: 6.90 -0.08 (-1.15%)

Deutsche Bank (DB): Suisse lowered their rating from Neutral to Underperform. Pre-market: 34.85 -0.58 (-1.64%)

Coverage Initiated

United Health Group (UNH): JPMorgan initiated coverage with an Overweight rating and target price of $72.00.

LogMeIn (LOGM): Oppenheimer initiated coverage with an Outperform rating and target price of $40.00.

Aetna (AET): JPMorgan initiated coverage with a Neutral rating and target price of $44.00.

Oceaneering Intl (OII): Pritchard initiated coverage with a Buy rating and target price of $86.00.

Markets: 
Futures at 8:43: Dow -0.30%. S&P -0.51%. Nasdaq -0.36%. Crude -1.13% to $82.35. Gold +0.46% to $1621.30. 

Europe: London -0.34%. Paris -0.71%. Frankfurt -0.83%. 

Asia: Japan +0.60%. Hong Kong +0.82%. China +1.27%. India +0.11%.