MORNING COFFEE

Economy Will Deteriorate According to researchers at the San Francisco Fed the economy “is likely to deteriorate progressively starting sometime next summer," additionally, over the next 18-24 months, the odds of another recession are higher than that of expansion.

Skype IPO Internet telephony provider Skype filed for an IPO of American depository shares. At of the end of June, Skype averaged 124 million users per month, with 8.1 million paying users. The company, will trade on Nasdaq and has not specified the number of shares in its IPO or the price range.

Upgrades

Fortune Brands (FO):  Argus raised their rating from Hold to Buy and placed a target price of $54.00 on the company.

Whole Foods (WFMI): Canaccord Genuity raised their rating from Hold to Buy and raised their target price from $43.00 to $47.00.

Deere (DE): Longbow raised their rating from Neutral to Buy and target price of $86.00 on the company.

Procter & Gamble (PG): Argus raised their rating from Hold to Buy and placed a target price of $66.00 on the company.

Downgrades

Hansen Natural (HANS): Standpoint Research lowered their rating from Buy to Hold.

Anadarko Petro (APC): FBR Capital lowered their rating from Outperform to Market Perform.

Coverage Initiated

Tesla Motors (TSLA): Deutsche Bank initiated coverage with a Hold and placed a target price of $17.00 on the company.

CBOE Holdings (CBOE): Oppenheimer initiated coverage with a Hold and placed a target price of $31.00 on the company.

Coverage Reiterated/Price Target Changed

Prudential (PRU): Deutsche Bank reiterated their Hold rating and raised their target price from $59.00 to $63.00.

PG&E (PCG): FBR Capital reiterated their Outperform rating and raised their target price from $46.00 to $49.00.

Earning Reports

MBIA (MBI): Reported Q2 EPS of $6.32 beating estimates by +$6.94.

McDermott International (MDR): Reported Q2 EPS of $0.32 missing estimates by -$0.11 on revenue of $1.3 billion.

Time Warner Telecom (TWTC): Report Q2 EPS of $0.10 beating estimates by +$0.01 on revenue of $317 million.

·         Futures: Dow -0.5%. S&P -0.6%. Nasdaq -0.4%. Crude -1.3% to $80.44. Gold -0.4% to $1197.40.

·         Asia: Japan -0.2% to 9551. Hong Kong -1.5% to 21474. China -2.9% to 2595. India -0.4% to 18220.

·         Europe: London -0.5%. Paris +1.0%. Frankfurt +0.6%.