MORNING COFFEE

Debt Commission To Release Recommendations.  President Obama’s Debt National Commission on Fiscal Responsibility and Reform is set to release their report that outlines recommendations on how to reduce our out of control debt.  The U.S. currently has a $1.3 trillion budget deficit and a $13.8 trillion national debt.  Some of the recommendations expected by the commission include: drastic cuts to Social Security, Medicare, farm subsidies and defense spending.  Also expected in the recommendations are elimination of tax breaks, including the elimination of the home mortgage interest deduction.

Coverage Initiated

Expedia (EXPE): Jefferies initiated coverage with a Buy rating and target price of $36.00.

Orbitz (OWW): Jefferies initiated coverage with a Hold rating and target price of $6.50.

Medifast (MED): Wedbush initiated coverage with an Outperform rating and target price of $32.00.

Coverage Reiterated/Price Target Changed

UnitedHealth (UNH): Wedbush reiterated their Neutral rating and raised their target price from $39.00 to $41.00.

Darden Restaurants (DRI): Argus reiterated their Buy rating and raised their target price from $52.00 to $58.00.

OmniVision (OVTI): Oppenheimer reiterated their Outperform rating and raised their target price from $27.00 to $32.00.

Earning Reports

OmniVision Technologies (OVTI): Reported FQ2 EPS of $0.58 beating estimates by +$0.05 on revenue of $240 million up +30.7%. 

·         Futures at 7:00: Dow +1.1%. S&P +1.2%. Nasdaq +1.0%. Crude +1.55% to $85.41. Gold +0.6% to $1393.90.

·         Asia: Japan +0.5% to 9988. Hong Kong +1.1% to 23250. China +0.1% to 2823. India +1.7% to 19850.

·         Europe: London +1.6%. Paris +0.4%. Frankfurt +1.8%.