MORNING COFFEE

Apple To Build Cheaper iPhone.  Reuters has reported that Asian suppliers to Apple (APPL) have begun manufacturing a lower-priced version of its iPhone 4. The new iPhone S will have a smaller 8 gigabyte flash drive, versus the current phones 16 GB and 32 GB versions. The new iPhone S is expected to launch in just a few weeks.  Additionally, the highly anticipated iPhone 5 will launch toward the end of September when it’s expected to do head to head against Motorola’s (MMI) new Droid Bionic which is also expected to launch in September. AAPL Pre-market: 359.48 +3.04 (0.85%) MMI Pre-market: 38.00 -0.04 (-0.11%)

Upgrades

Juniper Networks (JNPR): Morgan Keegan raised their rating from Market Perform to Outperform and placed a target price of $27.00 on the company. Pre-market: 20.14 +0.42 (2.13%)

Coach (COH): Jefferies raised their rating from Hold to Buy and placed a target price of $60.00 on the company. Pre-market: 48.20 +1.00 (2.12%)

Downgrades

Suntech Power (STP): Collins Stewart lowered their rating from Neutral to Sell and lowered their target price from $5.50 to $4.00. Pre-market: 4.99 -0.08 (-1.58%)

Hormel Foods (HRL):  BMO Capital lowered their rating from Outperform to Market Perform and placed a target price of $13.00 on the company. Pre-market: 28.10 +0.12 (0.43%)

Coverage Initiated

AOL (AOL): CLSA initiated coverage with an Outperform rating and target price of $14.00.

Priceline.com (PCLN): Credit Suisse initiated coverage with an Outperform rating and target price of $720.00. Pre-market: 453.75 +7.43 (1.66%)

Expedia (EXPE): Credit Suisse initiated coverage with a Neutral rating and target price of $37.00.

Earning Reports

HJ Heinz (HNZ): Reported EPS of $0.78 beating estimates by +$0.02. Pre-market: 51.35 -0.69 (-1.33%)

Medtronic (MDT): Reported EPS of $0.79 in-line with estimates.

Williams-Sonoma (WSM): Reported EPS of $0.37 beating estimates by +$0.01. Pre-market: 30.21 +0.18 (0.60%)

Markets

Futures at 8:35: Dow +1.37%. S&P +0.84%. Nasdaq +0.89%. Crude +1.52% at $85.62. Gold -0.43% to $1883.40. 

Europe: London +0.43%. Paris +1.19%. Frankfurt +0.79%. 

Asia: Japan +1.22% to 8733. Hong Kong +1.99% to 19876. China +1.52% to 2554. India +0.96% to 16498.