MORNING COFFEE

SAP TO Pay Oracle $1.3 Billion. A federal jury ruled SAP (SAP) must pay Oracle (ORCL) $1.3 billion for copyright infringement. In a statement Oracle said that the verdict is "the largest amount ever awarded for software piracy," SAP said that they would "pursue all available options, including post-trial motions and appeal if necessary."

Fed Expands Insider Trading Probe. Federal officials are expanding their insider trading probe.  Two Mutual fund companies, Janus Capital (JNS) and Wellington Management have received request for documents and information from the FBI.  In addition Hedge fund Citadel Investment Group received a wide-ranging subpoena from the Justice Department. Other subpoena recipients reportedly include hedge funds Maverick Capital Management and Millennium Capital Management. SAC Capital Advisors has reportedly sent investors a letter confirming it had received “extraordinarily broad” subpoenas which don't "shed much light on whom or what the government may be investigating."

Downgrades

J. Crew (JCG): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $46.00 to $45.00.

J. Crew (JCG): Wedbush lowered their rating from Outperform to Neutral.

Coverage Reiterated/Price Target Changed

Guess? (GES): Brean Murray reiterated their Buy rating and raised their target price from $50.00 to $60.00.

Guess? (GES): Wedbush reiterated their Neutral rating and raised their target price from $46.00 to $49.00.

TCF Financial (TCB): Collins Stewart reiterated their Hold rating and lowered their target price from $19.00 to $15.00.

Noble Corp (NE): FBR Capital reiterated their Outperform rating and raised their target price from $42.00 to $45.00.

Earning Reports

Guess? (GES): Reported Q3 EPS of $0.75 beating estimates by +$0.16 on revenue of $614 million.  Shares were up +8.7% after hours.

J Crew Group (JCG): Reported Q3 EPS of $0.58 Beating estimates by +$0.04 on revenue of $430 million.

TiVo (TIVO): Reported Q3 EPS of -$0.18 missing estimates by -$0.01 on revenue of $41.3 million.

Deere (DE): reported EPS of $1.07 beating estimates by +$0.12.

·         Futures at 7:00: Dow +0.3%. S&P +0.3%. Nasdaq +0.2%. Crude +0.5% to $81.69. Gold -0.2% to $1375.40.

·         Asia: Japan -0.8% to 10030. Hong Kong +0.6% to 23024. China +1.1% to 2859.94. India -1.2% to 19460.

·         Europe: London +0.6%. Paris +0.2%. Frankfurt +1.1%.