MORNING COFFEE

Q2 GDP Revised Upward. The final rating of the Q2 GDP growth was revised to 1.7% from the prior 1.6%. Personal consumption expenditures were revised to 2.2% from 2% due to stronger-than-expected services consumption.  Fixed investment fell to 18.9% from 19.5%; import growth rose to 33.5% from 32.4% and government spending was revised to 3.9% from 4.3%.

Microsoft Dings Ballmer’s Bonus.  Microsoft’s (MSFT) CEO Steve Ballmer lost half of his  $1.4 million bonus due to his weak performance in mobile phones, and not responding to tablet computers such as Apple’s (AAPL) iPad.  Additionally, Google’s (GOOG) Android operating systems continues to grow in the Smartphone market and will be released this holiday season as the operating system for many new tablet computers.

Downgrades

Amazon.com (AMZN): McAdams Wright Ragen lowered their rating from Buy to Hold .

Xilinx (XLNX): Goldman Sachs lowered their rating from Neutral to Sell and lowered their target price from $28.00 to $22.00.

Coverage Initiated

Xilinx (XLNX): Auriga U.S.A initiated coverage with a Hold rating and target price of $29.00.

Coverage Reiterated/Price Target Changed

Skechers USA (SKX): Wedbush reiterated their Outperform rating and lowered their target price from $42.00 to $33.00.

Digital River (DRIV): RBC Capital Markets reiterated their Outperform rating and raised their target price from $35.00 to $42.00.

Accenture (ACN): Kaufman Bros reiterated their Sell rating and raised their target price from $34.00 to $40.00.

Earning Reports

Accenture (ACN): Reported FQ4 EPS of $0.66 beating estimates by +$0.03 on revenue of $5.4 billion.

·         Futures: S&P +0.26%. 10-yr -0.04%. Euro +0.65% vs. dollar. Crude +1.19% to $80.92. Gold +0.54% to $1316.70.

·         Asia: Japan +0.4%. Hong Kong -0.1%. China +1.7%. India +1.8%.

·         Europe: London +0.9%. Paris +0.5%. Frankfurt +0.7%.