MORNING COFFEE

Economists Raised U.S. Outlook. In a Wall Street Journal survey economists have grown more positive on the U.S. economic outlook, as they expect the expansion to accelerate in 2011. The economists surveyed expect GDP to grow 2.6% this quarter, up from previous forecasts of 2.4%.  For 2011, economists are now looking for GDP growth of 3%.

Wal-Mart To Close Moscow Office. Wal-Mart (WMT) announced that it is closing its business office in Moscow, but also said that it remains interested in entering the Russian market. CEO Doug McMillon said "since we have decided to enter the market through acquisition, not greenfield development, and since there is no clear acquisition partner in the near term, there is not a business reason to continue our Moscow representative office."

Upgrades

Apollo Group (APOL): FBR Capital raised their rating from Underperform to Market Perform and maintained their $40.00 target price.

Coverage Resumed

Broadcom (BRCM): Auriga U.S.A resumed coverage with a Buy rating and target price of $55.00.

·         Futures at 7:00: Dow +0.05%. S&P +0.1%. Nasdaq +0.1%. Crude +1.25% to $88.89. Gold +0.5% to $1391.40.

·         Asia: Japan +0.8% to 10294. Hong Kong +0.7% to 23318. China+2.9% to 2923. India +0.9% to 19692.

·         Europe: London +0.7%. Paris +0.8%. Frankfurt +0.3%.