MORNING COFFEE

Bernanke Says Economy Slowing.  Speaking in Atlanta yesterday Fed Chairman Ben Bernanke caused the market to fear that the economy is slowing down, driving the markets lower.  In his speech Bernanke said that recent data on the labor market show a “loss of momentum” and that “the economy is still producing at levels well below its potential; consequently, accommodative monetary policies are still needed.”  In addition he said that the Fed “will take whatever actions are necessary to keep inflation well controlled.”

With regards to the national debt he said “establishing a credible plan for reducing future deficits now would not only enhance economic performance in the long run, but could also yield near-term benefits by leading to lower long-term interest rates.”

In the question and answer portion of his speech Jamie Dimon, CEO of JPMorgan Chase & Co. (JPM) suggested to Bernanke that rules from last year's financial overhaul law and over-regulation is causing the slow economic recovery. (JPM) Pre-market: 40.63 -0.09 (-0.22%)

Upgrades

Noble Corp (NE): Dahlman Rose raised their rating from Hold to Buy and placed a target price of $48.00 on the company. Pre-market: 39.35 -0.10 (-0.25%)

Verizon (VZ): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $48.00 on the company. Pre-market: 35.53 +0.15 (0.42%)

Clearwire (CLWR): Kaufman Bros raised their rating from Hold to Buy and placed a target price of $6.00 on the company.

Downgrades

Sunpower (SPWRA): Needham lowered their rating from Hold to Underweight. Pre-market: 20.65 -0.30 (-1.43%)

Coverage Initiated

Nike (NKE): ISI Group initiated coverage with a Buy rating and target price of $100.00.

Guess? (GES): ISI Group initiated coverage with a Hold rating and target price of $45.00.

Tiffany (TIF): ISI Group initiated coverage with a Buy rating and target price of $90.00.

Phillips-Van Heusen (PVH): ISI Group initiated coverage with a Buy rating and target price of $81.00.

Coverage Resumed

Marvell (MRVL): Auriga resumed coverage with a Buy rating and target price of $18.00.

Coverage Reiterated/Price Target Changed

Ulta Salon (ULTA): Oppenheimer reiterated their Outperform rating and raised their target price from $60.00 to $62.00. Pre-market: 55.95 +6.34 (12.78%)

Talbots (TLB): Oppenheimer reiterated their Outperform rating and lowered their target price from $11.00 to $4.00. Pre-market: 2.70 +0.07 (2.66%)

LDK Solar (LDK): Brean Murray reiterated their Buy rating and lowered their target price from $20.00 to $12.00. Pre-market: 6.80 -0.30 (-4.23%)

Earning Reports

Ciena (CIEN): Reported EPS of -$0.24 missing estimates by -$0.13. Pre-market: 21.14 -3.07 (-12.68%)

Piedmont  (PNY): Reported EPS of $0.66 missing estimates by -$0.01.

·         Futures at 8:46: S&P -0.31%. Nasdaq -0.56%. Dow -0.30%. Crude -0.98% to $98.12. Gold -0.70% to $1533.10.

·         Europe: London -0.9%. Paris -0.7%. Frankfurt -1.1%.

·         Asia: Japan +0.1%. Hong Kong -0.9%. China +0.2%. India -0.6%.