MORNING COFFEE

No Vote On Debt Bill. Yesterday’s vote on John Boehner’s debt reduction bill was delayed and finally canceled after it became evident that Tea Party Republicans would not vote yes on the bill and it would be defeated.  The Tea Party Republicans were looking for more substantial cuts to spending.  Republican and Democratic leaders plan to meet today to discuss strategy with only four days until the Aug. 2 deadline for raising the debt ceiling.  10yr Tres +19/32 2.881%, 30yr Tres +26/32 4.212%

Upgrades

Altria (MO): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $29.00 on the company. Pre-market: 26.10 -0.13 (-0.50%)

Downgrades

Constant Contact (CTCT): Stifel Nicolaus lowered their rating from Buy to Hold. Pre-market: 17.54 -3.38 (-16.16%)

Constant Contact (CTCT): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $35.00 to $24.00. Pre-market: 17.54 -3.38 (-16.16%)

Motorola Mobility (MMI): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target price range from $30.00-$31.00 to $22.00-$23.00. Pre-market: 21.51 -1.40 (-6.11%)

Coverage Initiated

Tellabs (TLAB): Kaufman Bros initiated coverage with a Hold rating and target price of $5.00. Pre-market: 4.04 0.00 (0.00%)

Coverage Reiterated/Price Target Changed

Expedia (EXPE): The Benchmark Company reiterated their Hold rating and raised their target price from $34.00 to $36.00. Pre-market: 30.23 +1.24 (4.28%)

Starwood Hotels (HOT): FBR Capital reiterated their Market Perform rating and raised their target price from $63.00 to $66.00. Pre-market: 54.25 -1.11 (-2.01%)

Earning Reports

American Electric (AEP): Reported EPS of $0.73 missing estimates by -0.03. Pre-market: 36.93 -0.23 (-0.62%)

Amgen (AMGN): Reported EPS of $1.37 beating estimates by +$0.08. Pre-market: 54.41 +0.98 (1.83%)

Arch Coal (ACI): Reported EPS of $0.44 missing estimates by -0.16. Pre-market: 24.93 -0.84 (-3.26%)

Newmont Mining (NEM): Reported EPS of $0.90 missing estimates by -0.09. Pre-market: 56.75 -0.98 (-1.70%)

·         Futures at 8:52: Dow -0.95%. S&P -0.96%. Nasdaq -0.71%. Crude -1.22% to $96.25. Gold +0.45% at $1620.60. 

·         Europe: London -1.38%. Paris -2.04%. Frankfurt -1.5%.

·         Asia: Japan -0.64% to 9833. Hong Kong -0.58% to 22440. China -0.26% to 2702. India -0.07% to 18197.