MORNING COFFEE

Google Sues Government. Google (GOOG) has filed law suit against the U.S. Interior Department.  The suit alleges the agency specified requirements for a new e-mail system that favored Microsoft (MSFT) over Google Apps. Google states that the Interior's decision to only consider Microsoft's productivity suite is "unduly restrictive of competition", a violation of the Competition in Contracting Act.

GM To Announce IPO. GM is expected to announce details of their IPO later today.  Sources say the offering price will be in the $26 to $29 per share range.  The government’s stake in the company will be lowered from 50% to 35%, but the shares will need to rise 60% from their initial level for the U.S. to break even.

Downgrades

Fortune Brands (FO): Argus lowered their rating from Buy to Hold.

Microvision (MVIS): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Initiated

Ulta Salon (ULTA): RBC Capital Markets initiated coverage with a Sector Perform rating and target price of $33.00.

Coverage Reiterated/Price Target Changed

Humana (HUM): Wedbush reiterated their Outperform rating and raised their target price from $58.00 to $67.00.

Automatic Data (ADP): Argus reiterated their Buy rating and raised their target price from $48.00 to $52.00.

Colgate-Palmolive (CL): Caris & Company reiterated their Average rating and raised their target price from $83.00 to $88.00.

Baker Hughes (BHI): RBC Capital Markets reiterated their Outperform rating and raised their target price from $55.00 to $62.00.

Baker Hughes (BHI): FBR Capital reiterated their Market Perform rating and raised their target price from $48.00 to $56.00.

Earnings

Clorox (CLX):  Reported Q1 EPS of $1.52 beating estimates by +$0.38 on revenue of $1.27 billion..

Kellogg (K): Reported Q3 EPS of $0.90 in-line with estimates.

Herbalife (HLF): Reported Q3 EPS of $1.17 beating estimates by +$0.14 on revenue of $688 million.

Teva Pharmaceutical Industries (TEVA): Reported Q3 EPS of $1.30 beating estimates by +$0.03 on revenue of $4.3 billion. Shares are +1.7% higher in the premarket.

Medco Health Solutions (MHS): Reported Q3 EPS of $0.91 beating estimates by +$0.03 on revenue of $16.3 billion.

Newmont Mining (NEM): Reported Q3 EPS of $1.08 beating estimates by +$0.13 on revenue of $2.6 billion.

NYSE Euronext (NYX): Reported Q3 EPS of $0.46 beating estimates by +$0.03 on revenue of $599 million.

Anadarko (APC): Reported Q3 EPS of $0.21 missing estimates by -$0.07 on revenue of $2.6 billion.

·         Futures: Dow +0.2%. S&P +0.4%. Nasdaq +0.3%. Crude +0.5% to $83.33. Gold +0.6% to $1358.50.

·         Asia: Japan +0.1% to 9160. Hong Kong +0.1% to 23671. China -0.3% to 3045. India -0.1% to 20346.

·         Europe: London +0.9%. Paris +0.2%. Frankfurt +0.5%.