MORNING COFFEE

Lockheed Ready For Military Cutbacks. Lockheed Martin’s (LMT) CEO Bob Stevens said the defense industry faced with "a new reality," as the Defense Department moves to cut costs. Lockheed is cutting in half its participation in an important biennial trade fair.  The company is also preparing for increased scrutiny of its F-35 Joint Strike Fighter program and is preparing to cut the price of the new planes by at least 20%.

Oh,Oh SpaghettiO’s. Campbell (CPB) announced they are recalling SpaghettiOs with meatballs due to possible undercooking. The company said "there is no information indicating that any under-processed product has reached consumers," and that the recall was undertaken out of "an abundance of caution."

Downgrades

L-3 Comms (LLL):  Argus lowered their rating from Buy to Sell.

·         Futures: Dow -0.2%. S&P -0.2%. Nasdaq -0.1%. Crude -1.45% to $75.68. Gold -0.2% to $1246.30.

·         Asia: Japan 0.0% at 9995. Hong Kong +0.7% to 20287. China -1.8% to 2513. India -0.3% to 17571.

·         Europe: London 0.0%. Paris -0.3%. Frankfurt -0.2%.