MORNING COFFEE

Microsoft To Raise Cash. Microsoft (MSFT) is planning a debt sale to pay for dividends and share buybacks because a significant portion of the company’s cash is held overseas. The company could raise as much as $6 billion without endangering its AAA debt rating. The debt sale could occur as early as this year.

Retail Sale Rise. The Commerce Department announced that retail sales rose +0.4% in August.  Economist has anticipated sales to rise only +0.3%. This was the second consecutive month of rising sales, easing concern the economy will stumble in the second half of the year.   Eight of 13 major categories showed increases, led by grocery stores and service stations. Excluding autos, gasoline and building materials, sales advanced +0.6% after dropping -0.1% drop in July.\

Downgrades

Exxon Mobil (XOM): RBC Capital Markets lowered their rating from Outperform to Sector Perform and lowered their target price from $76.00 to $70.00.

Campbell Soup (CPB): Goldman Sachs lowered their rating from Neutral to Sell.

Teradyne (TER): Oppenheimer lowered their rating from Outperform to Perform and lowered their target price from $17.00 to $10.00.

Coverage Initiated

Wesco (WCC): Stifel Nicolaus initiated coverage with a Buy rating and target price of $45.00.

Coverage Reiterated/Price Target Changed

Corning (GLW): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $26.00 to $22.00.

THQ Inc (THQI): Wedbush reiterated their Neutral rating and lowered their target price from $5.50 to $5.00.

Priceline.com (PCLN): The Benchmark Company reiterated their Buy rating and raised their target price from $320.00 to $384.00.

Intel (INTC): Auriga U.S.A reiterated their Buy rating and lowered their target price from $25.00 to $22.00.

Advanced Micro (ADM): Auriga U.S.A reiterated their Sell rating and lowered their target price from $6.00 to $5.00.

  

·         Futures: Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -0.6% to $76.76. Gold +0.6% to $1254.40.

·         Asia: Japan -0.2% to 9299. Hong Kong +0.2% to 21696. China 0.0%. India +0.7% to 19347.

·         Europe: London 0.0%. Paris -0.1%. Frankfurt 0.0%.