MORNING COFFEE

Presidents Jobs Plan Unveiled. President Obama in a speech last night unveiled a $447 billion plan to create jobs. The plan includes a continuation of the payroll tax relief to a tune of $240 billion, an extension of unemployment insurance $49 billion and $50 billion for transport infrastructure. In the speech to the country the President didn’t say how the plan would be paid for but did say he would propose a deficit-reduction plan on September 19 to cover the cost of his jobs bill. To pay for the plan reports say that he will make cuts to Medicare and Medicaid, as well as increase taxes on higher wage earners and corporations. The United Sates already has the highest corporate tax rate in the world.

Upgrades

Cisco Systems (CSCO): RBC Capital Markets raised their rating from Underperform to Outperform

Downgrades

Fiat S.p.A. (FIATY): Macquarie lowered their rating from Neutral to Underperform.

Research In Motion (RIMM): Jefferies lowered their rating from Hold to Underperform and placed a target price of $25.00 on the company.

Sanofi-Aventis (SNY): Credit Suisse lowered their rating from Outperform to Neutral.

Coverage Initiated

Applied Materials (AMAT): CLSA initiated coverage with a Outperform rating and target price of $12.50

Microchip Technology (MCHP): Mizuho initiated coverage with a Neutral rating and target price of $33.00

Cree (CREE): ThinkEquity initiated coverage with a Hold rating and target price of $30.00

Coverage Reiterated/Price Target Changed

Las Vegas Sands (LSV): Stifel Nicolaus reiterated their Buy rating and raised their target price from $58.00 to $60.00.

Ulta Salon (ULTA): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $60.00 to $65.00.

Best Buy (BBY): RBC Capital Markets reiterated their Top Pick rating and lowered their target price from $38.00 to $32.00.

Corning (GLW): Sterne Agee reiterated their Buy rating and lowered their target price from $26.00 to $24.00.

Texas Instruments (TXN): FBR Capital reiterated their Market Perform rating and lowered their target price from $36.00 to $32.00.

Earnings

Kroger (KR): Reported EPS of $0.46 beating estimates by +$0.03.

Markets: 
Futures at 8:15: Dow -0.16%. S&P -0.10%. Nasdaq -0.69%. Crude -1.5% to $87.74. Gold -0.63% to $1845.20. 

Europe: London -1.39%. Paris -2.22%. Frankfurt -1.87%.

Asia: Japan -0.6% to 8738. Hong Kong -0.2% to 19867. China -0.1% to 2498. India -1.7% to 16867.