MORNING COFFEE

Bernanke Takes The Spotlight. Wall Street will be watching closely as Fed Chairman Ben Bernanke delivers his outlook for the U.S. economy this morning at a symposium in Jackson Hole, Wyoming. Bernanke will need to send a positive message about the economy while also outlining the steps the Fed would take if the economy continues to slow.

Berkshire Buys Wesco Financial. Warren Buffett’s Berkshire Hathaway (BRK.A/BRK.B) announced plans to buy the remaining 19.9% of Wesco Financial (WSC) that it doesn't already own in a transaction valued at around $514 million. Wesco is run by Berkshire Vice Chairman Charlie Munger.  Shares of Wesco were up +11.8% on the announcement.

Downgrades

General Dynamics (GD): Argus lowered their rating from Buy to Hold.

Coverage Initiated

Sturm Ruger (RGR): Merriman initiated coverage with a Neutral rating.

Coverage Reiterated/Price Target Changed

J. Crew (JCG): Brean Murray reiterated their Buy rating and lowered their target price from $53.00 to $42.00.

J. Crew (JCG): Janney Montgomery Scott reiterated their Buy rating and lowered their target price from $41.00 to $37.00.

PG&E (PCG): Argus reiterated their Buy rating and raised their target price from $49.00 to $56.00.

OmniVision (OVTI): Oppenheimer reiterated their Outperform rating and raised their target price from $23.00 to $27.00.

Earning Reports

J Crew Group (JCG): Reported Q2 EPS of $0.53 beating estimates by +$0.07 on revenue of $408 million.

Novell (NOVL): Reported FQ3 EPS of $0.06 missing estimates by -$0.01 on revenue of $199 million.

·         Futures: Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +0.1% to $73.42. Gold +0.1% to $1238.50.

·         Asia: Japan +0.9% to 8991. Hong Kong -0.1% to 20597. China +0.3% to 2611. India -1.3% to 17998.

·         Europe: London -0.1%. Paris flat. Frankfurt -0.1%.