MORNING COFFEE

Microsoft Windows 8 Everywhere. Today in Berlin the IFA international conference for consumer electronics and home appliances kicks off with many new products being unveiled for the first time. Microsoft does not have an exhibit, yet it is everywhere you look. Windows 8/RT tablets are numerous, including tablets from both Dell (DELL) and H-P (HPQ).  Samsung (SSNFL) is also showing off its Windows 8 smartphone. MSFT Pre-market: 30.58 +0.26 (0.86%)

Upgrades

CIBC (CM): BMO Capital Markets raised their rating from Market Perform to Outperform.

Corning (GLW): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $16.00 on the company. Pre-market: 12.02 +0.40 (3.44%)

Credit Suisse (CS): ING Group raised their rating from Sell to Hold. Pre-market: 19.21 +0.64 (3.45%)

Downgrades

Toronto Dominion Bank (TD): Credit Suisse lowered their rating from Outperform to Hold. Pre-market: 81.99 +0.70 (0.86%)

Coverage Initiated

Garmin (GRMN): Wells Fargo initiated coverage with an Outperform rating. Pre-market: 40.14 +0.17 (0.43%)

Earning Reports

Zumiez (ZUMZ): Reported EPS of $0.17 beating estimates by +$0.04. Pre-market: 29.14 -3.08 (-9.56%)

Markets: 
Futures at 8:33: Dow +0.89%. S&P +0.85%. Nasdaq +0.94%. Crude +1.28% to $95.83. Gold +0.49% to $1665.30.

Europe: London +0.54%. Paris +1.17%. Frankfurt +1.39%. 

Asia: Japan -1.60%. Hong Kong -0.36%. China -0.25%. India 0.00%. 

MORNING COFFEE

Sears Gets Booted From S&P 500 Index. For over 55 years Sears (SHLD)has been included in the S&P 500 Index, now that is about to change.  The company was one of the original members of the index when it was created back in 1957 and includes some of the biggest household names. LyondellBasell (LYB) will replace Sears in the S&P 500 after the close of trading next Tuesday. LyondellBasell is a chemical company that consists of processing plants that convert liquid and gaseous hydrocarbon into plastic resins and other chemicals.

Upgrades

Pandora Media (P): Canaccord Genuity raised their rating from Hold to Buy and raised their target price from $13.00 to $16.00. Pre-market: 11.46 +1.38 (13.69%)

Downgrades

Angie's List (ANGI): Canaccord Genuity lowered their rating from Buy to Hold and lowered their target price from $20.00 to $12.50. Pre-market: 10.00 -0.22 (-2.15%)

Humana (HUM): Credit Suisse lowered their rating from Outperform to Neutral.

Coverage Initiated

Symantec (SYMC): Longbow initiated coverage with a Neutral rating. Pre-market: 17.72 -0.11 (-0.62%)

VMware (VMW): Longbow initiated coverage with a Buy rating and target price of $110.00. Pre-market: 90.18 -0.44 (-0.49%)

Earning Reports

Pandora Media (P): Reported EPS of $0.00 beating estimates by +$0.04. Pre-market: 11.46 +1.38 (13.69%)

TiVo (TIVO): Reported EPS of -$0.23 beating estimates by +$0.02. Pre-market: 9.55 +0.19 (2.03%)

Ciena (CIEN): Reported EPS of $0.04 missing estimates by -$0.02. Pre-market: 9.55 +0.19 (2.03%)

Toronto Dominion Bank (TD): Reported EPS of $1.91 beating estimates by +$0.07. Pre-market: 82.50 +0.13 (0.16%)

Markets: 
Futures at 8:52: Dow -0.33%. S&P -0.36%. Nasdaq -0.39%. Crude -0.12% to $95.38. Gold +0.12% to $1665.10.

Europe: London -0.23%. Paris -0.49%. Frankfurt -0.83%. 

Asia: Japan -0.95%. Hong Kong -1.19%. China -0.03%. India +0.29%. 

MORNING COFFEE

GM’s Volt is Out of Juice. Reports say that General Motors (GM) will halt production of its highly hyped all-electric Chevy Volt.  At this time it is unclear if it will be permanently halted. For now production will stop for about four weeks in September and October. Sales of the Volt haven't met expectations, barely hitting 10,000 in the U.S. versus expectations of 45,000. Consumers don’t like the 25-40 mile real world range of the car and are concerned about reports that the battery can catch fire. Pre-market: 21.02 -0.20 (-0.94%)

Upgrades

Eli Lilly (LLY): Atlantic Equities raised their rating from Underweight to Overweight.

Downgrades

GlaxoSmithKline (GSK): UBS lowered their rating from Buy to Neutral. Pre-market: 45.80 -0.69 (-1.48%)

Coverage Initiated

Ford Motor Co. (F): CSLA initiated coverage with an Outperform rating. Pre-market: 9.37 -0.02 (-0.21%)

Toronto-Dominion Bank (TD): Stifel Nicolaus initiated coverage with a Hold rating.

MGM Resorts (MGM): Brean Murray initiated coverage with a Hold rating. Pre-market: 10.07 -0.03 (-0.30%)

Earning Reports

PVH (PVH): Reported EPS of $1.25 beating estimates by $0.05. Pre-market: 93.35 +4.86 (5.49%)

Movado Group (MOV): Reported EPS of $0.32 beating estimates by $0.14. Pre-market: 34.64 +4.53 (15.04%)

Markets: 
Futures at 8:32 Dow -0.13%. S&P -0.23%. Nasdaq -0.13%. Crude +0.70% to $96.14. Gold -0.48% to $1667.60.

Europe: London -0.39%. Paris -1.12%. Frankfurt -0.93%. 

Asia: Japan -0.57%. Hong Kong +0.07%. China +0.85%. India -0.27%. 

MORNING COFFEE

U.S. Stock Futures Point Higher.  U.S. markets are set to open higher as traders digest news from the EU Central Bank and Apple.  The European Central Bank is considering a plan to set yield-band targets in a new bond-buying program that could help contain EU countries borrowing costs. Traders are also looking at the meeting to be held on Friday in Jackson Hole were central bankers and the Federal Reserve are scheduled to meet.  The market will be looking for news that they will do something to stimulate a slowing global economy.  For the U.S. economy, Wall Street is looking for the Fed to announce a new round of quantitative easing, or QE3.

Apple (AAPL) shares are also higher on news that the company won the patent lawsuit against Samsung. Pre-market: 679.10 +15.88 (2.39%)

Upgrades

Weyerhaeuser Co. (WY): BMO Capital raised their rating from Underperform to Market Perform and placed a target price of $26.50 on the company. Pre-market: 24.70 +0.33 (1.35%)

TreeHouse Foods (THS): Citigroup raised their rating from Neutral to Buy and raised their target price from $56.00 to $61.00. Pre-market: 51.99 +0.75 (1.46%)

Downgrades

Autodesk (ADSK): Argus lowered their rating from Buy to Hold. Pre-market: 30.51 +0.38 (1.26%)

Public Storage (PEG): FBR Capital lowered their rating from Market Perform to Underperform and placed a target price of $30.00 on the company.

Coverage Initiated

Mosaic (MOS): Topeka initiated coverage with a Hold rating.

Allergan (AGN): William Blair initiated coverage with an Outperform rating.

Angie’s List (ANGI): Barrington Research initiated coverage with a Market Perform rating. Pre-market: 9.53 -0.16 (-1.65%)

Coverage Reiterated/Price Target Changed

Apple (AAPL): Oppenheimer reiterated their Outperform rating and raised their target price from $680.00 to $800.00. Pre-market: 679.10 +15.88 (2.39%)

Intel (INTC): Sterne Agee reiterated their Neutral rating and lowered their target price from $25.00 to $24.00. Pre-market: 24.91 0.00 (0.00%)

Markets: 
Futures at 8:13: Dow +0.21%. S&P +0.25%. Nasdaq +0.68%. Crude +0.83% to $96.95. Gold -0.02% at $1672.50.

Europe: London closed. Paris +0.46%. Frankfurt +0.82%. 

Asia: Japan +0.16%. Hong Kong -0.41%. China -1.74%. India -0.59%. 

MORNING COFFEE

Possible iPhone and iPad Ban in U.S. The U.S. International Trade Commission or ITC is scheduled to announce today whether Apple’s (AAPL) popular iPhone and iPad will be ban in the U.S.   Google’s (GOOG) Motorola Mobility is seeking to block imports of the devices saying that Apple infringed on four Motorola Mobility patents. Two of the patents relate to industry standards for 3G and Wi-Fi technologies.

Apple denies they infringed on Motorola’s patents. If the ITC does find that Apple did infringe on the patents Apple in filings contents that its devices shouldn’t be stopped being imported to the U.S. AAPL Pre-market: 660.03 -2.60 (-0.39%) GOOG Pre-market: 676.00 -0.80 (-0.12%)

Upgrades

American Eagle Outfitters (AEO): Bank of America Merrill Lynch raised their rating from Underperform to Neutral and raised their target price from $18.00 to $24.00. Pre-market: 22.10 +0.22 (1.01%)

Bristol-Meyers Squibb (BMY): Bank of America Merrill Lynch raised their rating from Neutral to Buy and placed a target price of $36.00 on the company. Pre-market: 32.10 -0.05 (-0.16%)

Downgrades

Big Lots (BIG): The Benchmark Company lowered their rating from Buy to Hold and lowered their target price from $45.00 to $33.00. Pre-market: 30.38 -0.38 (-1.24%)

Merck & Co. (MRK): Bank of America Merrill Lynch lowered their rating from Buy to Neutral and placed a target price of $45.00 on the company. Pre-market: 42.50 -0.30 (-0.70%)

Coverage Initiated

Campbell Soup (CPB): Credit Suisse initiated coverage with a Neutral rating and target price of $35.00.

McDermott International (MDR): Stephens initiated coverage with an Overweight rating and target price of $35.00.

Swift Transportation (SWFT): Dahlman Rose initiated coverage with a Hold rating.

Earning Reports

Autodesk (ADSK): Reported EPS of $0.48 missing estimates by -$0.01. Pre-market: 27.39 -8.32 (-23.30%)

Bebe stores (BEBE): Reported EPS of $0.04 beating estimates by $0.01.

Salesforce.com (CRM): Reported EPS of $0.42 beating estimates by $0.03. Pre-market: 139.68 -7.09 (-4.83%)

Markets: 
Futures at 8:10: Dow -0.11%. S&P -0.09%. Nasdaq -0.18%. Crude -0.34% to $95.94. Gold -0.30% to $1670.70.

Europe: London -0.34%. Paris -0.48%. Frankfurt -0.46%. 

Asia: Japan -1.17%. Hong Kong -1.25%. China -0.99%. India -0.38%. 

MORNING COFFEE

Middle Class Hit Hard. A new Pew Research study has found that the middle class has suffered its "worst decade in modern history" The study found that from 2000-2010 the middle class saw their income decline for the first time since World War II. In 1970, the share of U.S. income going to the middle class was 62%, while the wealthy received 29%; by 2010, the middle class took 45% of total income vs. 46% for upper-income Americans. The study also found that 62% of the middle class reported that they are being forced to curb spending. Only 43% of the middle class when asked said that their children’s standard of living would be better than theirs, down from 51% in 2008. When asked who was to blame 62% blamed the government.

Upgrades

Tilly’s (TLYS): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $20.00 on the company. Pre-market: 16.60 +0.02 (0.12%)

L-3 Communications (LLL): RBC Capital raised their rating from Underperform to Sector Perform and placed a target price of $74.00 on the company.

Downgrades

U.S. Steel (X): Dahlman Rose lowered their rating from Buy to Hold. Pre-market: 22.36 -0.41 (-1.80%)

Northrop Grumman (NOC): RBC Capital lowered their rating from Sector Perform to Underperform and placed a target price of $68.00 on the company.

Coverage Initiated

Whole Foods Market (WFM): Wells Fargo initiated coverage with an Outperform rating and target price range of $110.00-$115.00. Pre-market: 97.40 +0.40 (0.41%)

Caterpillar (CAT): CLSA initiated coverage with an Outperform rating and target price of $105.00. Pre-market: 88.34 -0.38 (-0.43%)

Joy Global (JOY): CLSA initiated coverage with an Underperform         rating and target price of $60.00. Pre-market: 57.20 -0.67 (-1.16%)

Coverage Reiterated/Price Target Changed

Guess? (GES): Caris & Company reiterated their Above Average rating and lowered their target price from $35.00 to $33.00. Pre-market: 27.15 -6.39 (-19.05%)

Earning Reports

Guess? (GES): Reported EPS of $0.49 missing estimates by -$0.01. Pre-market: 27.15 -6.39 (-19.05%)

Hewlett-Packard (HPQ): Reported EPS of $1.00 beating estimates by +$0.02. Pre-market: 18.12 -1.08 (-5.63%)

Tilly’s (TLYS): Reported EPS of $0.9 beating estimates by +$0.02. Pre-market: 16.60 +0.02 (0.12%)

Big Lots (BIG): Reported EPS of $0.36 missing estimates by -$0.05. Pre-market: 31.90 -6.94 (-17.87%)

Hormel Foods (HRL): Reported EPS of $0.41 in-line with estimates. Pre-market: 29.00 +0.58 (2.04%)

Markets: 
Futures at 7:00: Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude +0.6% to $97.82. Gold +1.5% to $1664.90.

Europe: London +0.4%. Paris +0.3%. Frankfurt +0.2%. 

Asia: Japan +0.5%. Hong Kong +1.2%. China +0.3%. India 0.0%. 

MORNING COFFEE

Apple Becomes Largest Company Ever. Apple has become the largest coming ever surpassing Microsoft value during the tech bubble.  At the close yesterday Apple had a market value of over $625 billion.  Some are now saving that the company has the potential to become the world’s first trillion dollar company.  Apple has been able to dominate the market place with its invative products such as the iPhone and iPad.  This has allowed the company to charge higher prices for its product translating into higher profit margins.  The company is also set to roll out a slew of new product just in time for the Christmas holiday season; they include the new iPhone 5, and new iPad and iTV.  The company’s current market value is over $200 billion more then the next closest company which is ExxonMobile (XOM).  Shares are up 64% this year. Pre-market: 670.75 +5.60 (0.84%)

Upgrades

Netflix (NFLX): Caris & Company raised their rating from Below Average to Average. Pre-market: 64.95 +0.71 (1.11%)

Gap (GPS): Argus raised their rating from Hold to Buy and placed a target price of $42.00 on the company. Pre-market: 35.65 +0.31 (0.88%)

Knight Transportation (KNX): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $18.00 on the company.

Downgrades

Suntech Power (STP): Argus lowered their rating from Hold to Sell.

Edison (EIX): Argus lowered their rating from Buy to Hold.

Diamond Offshore Drilling (DO): Guggenheim lowered their rating from Buy to Neutral and placed a target price of $77.00 on the company. Pre-market: 68.29 -0.33 (-0.48%)

Fossil (FOSL): ISI Group lowered their rating from Buy to Hold. Pre-market: 87.00 -1.39 (-1.57%)

Coverage Initiated

Corning (GLW): Stifel Nicolaus resumed coverage with a Buy rating and placed a target price of $48.00 on the company. Pre-market: 12.10 +0.11 (0.92%)

Earning Reports

Urban Outfitters (URBN): Reported EPS of $0.42 beating estimates by +$0.09. Pre-market: 36.65 +5.37 (17.1%)

Barnes & Noble (BKS): Reported EPS of -$0.78 beating estimates by +$0.20. Pre-market: 12.75 +0.40 (3.24%)

Best Buy (BBY): Reported EPS of $0.20 missing estimates by -$0.11. Pre-market: 16.39 -1.77 (-9.75%)

GasLog (GLOG): Reported EPS of $0.04 beating estimates by +$0.01.

Medtronic (MDT): Reported EPS of $0.85 in-line with estimates. Pre-market: 41.10 -0.35 (-0.84%)

Markets: 
Futures at 8:51: Dow +0.29%. S&P +0.31%. Nasdaq +0.39%. Crude +1.39% to $97.30. Gold +1.31% to $1641.40.

Europe: London +0.37%. Paris +0.66%. Frankfurt +0.52%. 

Asia: Japan -0.16%. Hong Kong -0.02%. China +0.54%. India +1.10%.