MORNING COFFEE

JPMorgan Chase Losses Larger Than Reported. JPMorgan (JPM) announced they will have to restate their Q1 results due to trading losses at its CIO unit and cut net income by $459 million. The announcement came as the bank reported that losses in Q2 from the trades nearly three times the amount originally reports.  The trading losses are now approaching $5.8 billion. EPS in the quarter fell to $1.21 from $1.27, while revenue slipped to $5B from $5.4B. Pre-market: 35.05 +1.01 (2.97%)

Upgrades

Merck (MRK): MP Securities raised their rating from Market Perform to Outperform and placed a target price of $45.00 on the company. Pre-market: 42.93 +0.02 (0.05%)

Starwood Hotels & Resorts (HOT): MKM Partners raised their rating from Neutral to Buy. Pre-market: 48.73 +0.07 (0.15%)

Downgrades

Saks Inc (SKS): Bank of America / Merrill Lynch lowered their rating from Neutral to Underperform and lowered their target price from $13.00 to $9.00.

Coverage Initiated

Google Inc. (GOOG): Wedbush initiated coverage with a Neutral rating and target price of $640.00.

PVH Corp. (PVH): Lazzard Capital initiated coverage with a Buy rating and target price of $97.00.

Wendy’s (WEN): KeyBanc Capital Markets initiated coverage with a Hold rating.

Darden Restaurants (DRI): KeyBanc Capital Markets initiated coverage with a Hold rating. Pre-market: 49.68 -0.52 (-1.04%)

Buffalo Wild Wings (BWLD): KeyBanc Capital Markets initiated coverage with a Hold rating.

Panara Bread (PNRA): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $175.00. Pre-market: 143.40 -0.22 (-0.15%)

Brinker (EAT): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $40.00.

Cracker Barrel (CBRL): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $75.00. Pre-market: 62.43 -0.09 (-0.15%)

Earning Reports

JPMorgan Chase (JPM): Reported EPS of $1.21 beating estimates by +$0.46. Pre-market: 35.05 +1.01 (2.97%)

Wells Fargo (WFC): Reported EPS of $0.82 beating estimates by +$0.01. 

Markets: 
Futures at 8:31: Dow +0.28%. S&P +0.30%. Nasdaq +0.29%. Crude +0.79% to $86.76. Gold +1.19% to $1584.00.

Europe: London +0.52%. Paris +0.40%. Frankfurt +0.93%. 

Asia: Japan +0.05%. Hong Kong +0.35%. China +0.02%. India -0.11%.