MORNING COFFEE

TD Ameritrade Looking To Buy E-Trade. Reports say that TD Ameritrade (AMTD) will discuss purchasing E-Trade Financial (ETFC) at tomorrow’s board meeting.  E-Trade has been hampered by troubled mortgage securities and a major shareholder prompted the company to look for possible buyers. AMTD Pre-market: 19.76 +0.15 (0.76%) ETFC Pre-market: 16.24 +0.60 (3.84%) 

Upgrades

CBOE Holdings (CBOE): Stifel Nicolaus raised their rating from Sell to Hold.

Volvo (VOLVY): Robert W. Baird raised their rating from Neutral to Outperform.

Owens Corning (OC): RBC Capital Markets raised their rating from Outperform to Top Pick and raised their target price from $42.00 to $45.00.

Coverage Initiated

Agilent (A): Cowen initiated coverage with an Outperform rating. Pre-market: 46.50 -0.39 (-0.83%)

Pandora Media (P): Wells Fargo initiated coverage with an Outperform rating and a target price range of $21.00 to $23.00. Pre-market: 18.68 +0.65 (3.61%)

Pandora Media (P): William Balir initiated coverage with an Outperform rating. Pre-market: 18.68 +0.65 (3.61%)

Pandora Media (P): JP Morgan initiated coverage with an Overweight rating and a target price of $22.00. Pre-market: 18.68 +0.65 (3.61%)

Pandora Media (P): Citigroup initiated coverage with a Buy rating and a target price of $25.00. Pre-market: 18.68 +0.65 (3.61%)

Coverage Reiterated/Price Target Changed

McDonald's (MCD): RBC Capital Markets reiterated their Outperform rating and raised their target price from $85.00 to $100.00. Pre-market: 87.85 -0.71 (-0.80%)

Honeywell (HON): FBR Capital reiterated their Market Perform rating and raised their target price from $64.00 to $66.00. Pre-market: 55.90 -0.50 (-0.89%)

Earning Reports

Baker Hughes (BHI): Reported EPS of $0.93 beating estimates by +$0.02. Pre-market: 77.85 -2.05 (-2.57%)

Eaton (ETN): Reported EPS of $0.97 beating estimates by +$0.02. Pre-market: 51.48 +0.32 (0.63%)

Kimberly-Clark (KMB): Reported EPS of $1.18 beating estimates by +$0.02. Pre-market: 67.54 -0.36 (-0.53%)

Silicon Labs (SLAB): Reported EPS of $0.48 beating estimates by +$0.03. Pre-market: 37.90 -3.83 (-9.18%)

·         Futures at 9:04: Dow -0.74%. S&P -0.86%. Nasdaq -0.67%. Crude -0.94% to $98.93. Gold +1.08% to $1618.70.

·         Europe: London -0.41%. Paris -0.19%. Frankfurt -0.06%. 

Asia: Japan -0.81% to 10050. Hong Kong -0.68% to 22293. China -2.96% to 2689. India +0.80% to 18871. 

MORNING COFFEE

Google+ Is A Hit. Google’s new social networking attempt to take on Facebook seems to be a hit.  Google+ has in just three weeks attracked over 20 million users.  Although it’s only a fraction of the 750 million users that Facebook has anayalist are saying that it could continue to gain traction with users the same way it’s smartphone operating system Android has taken on Apple’s iPhone.  Android has now become the world most popular phone operating system surpassing the iPhone and Microsoft’s Mobile 7. Pre-market: 606.25 -0.74 (-0.12%)

Apple Looking to Buy Hulu. Reports this morning are suggesting that Apple (AAPL) is considering purchasing Hulu and InterDigital (IDCC). Hulu this allows users to view T.V. programs over the internet is expected to fetch over $2 billion while InterDigital is worth $3.4 billion. Additionally, other companies reportedly looking to purchase Hulu include AT&T (T), Google (GOOG), and Yahoo (YHOO). AAPL Pre-market: 387.73 +0.44 (0.11%), T Pre-market: 30.11 -0.17 (-0.56%), GOOG Pre-market: 606.25 -0.74 (-0.12%), YHOO Pre-market: 13.60 +0.01 (0.07%)

Upgrades

Adidas AG (ADDYY): Deutsche Bank raised their target price form Hold to Buy.

Advanced Micro (AMD): Canaccord raised their rating from Hold to Buy and maintained their target price of $8.00. Pre-market: 7.10 +0.60 (9.23%)

Kroger (KR): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $25.00 to $29.00. Pre-market: 25.30 +0.15 (0.60%)

Microsoft (MSFT): Davenport raised their rating from Neutral to Buy and placed a target price of $35.00 on the company. Pre-market: 26.87 -0.22 (-0.83%)

Downgrades

Medco Health Solutions (MHS): Argus lowered their rating from Buy to Hold. Pre-market: 63.50 -0.33 (-0.52%)

Medco Health Solutions (MHS): Davenport lowered their rating from Buy to Neutral. Pre-market: 63.50 -0.33 (-0.52%)

Texas Instruments (TXN): Exane BNP Paribas lowered their rating from Neutral to Underperform. Pre-market: 31.30 -0.31 (-0.98%)

Western Digital (WDC): ThinkEquity lowered their rating from Buy to Hold and lowered their target price from $45.00 to $38.00. Pre-market: 35.92 +0.79 (2.25%)

SunPower (SPWRA): Lazard Capital lowered their rating from Buy to Neutral.

Earning Reports

Honeywell (HON): Reported EPS of $1.02 beating estimates by +$0.04. Pre-market: 57.66 -0.55 (-0.94%)

McDonald's (MCD): Reported EPS of $1.35 beating estimates by +$0.07. Pre-market: 88.70 +2.16 (2.50%)

Advanced Micro (AMD): Reported EPS of $0.09 beating estimates by +$0.01. Pre-market: 7.10 +0.60 (9.23%)

Compuware (CPWR): Reported EPS of $0.08 beating estimates by +$0.01.

Microsoft (MSFT): Reported EPS of $0.69 beating estimates by +$0.11. Pre-market: 26.87 -0.22 (-0.83%)

Western Digital (WDC): Reported EPS of $0.81 beating estimates by +$0.15. Pre-market: 35.92 +0.79 (2.25%)

·         Futures at 9:00: Dow -0.32%. S&P -0.25%. Nasdaq -0.44%. Crude -0.19% to $98.94. Gold +0.95% to $1602.00.

·         Europe: London +0.48%. Paris +0.35%. Frankfurt +0.20%. 

·         Asia: Japan +1.22% to 10132. Hong Kong +2.08% to 22445. China +0.18% to 2771. India +1.55% to 18722. 

MORNING COFFEE

Express Scripts to Buy Medco. Express Scripts (ESRX) has agreed to buy Medco Health Solutions (MHS) for $71.36 per share a 28% premium to yesterday’s closing price.  The $29.1 billion deal will combine two of the largest managers of prescription drug benefits in the U.S. ESRX Pre-market: 56.15 +3.61 (6.87%) MHS Pre-market: 66.75 +10.97 (19.67%)

Upgrades

Williams-Sonoma (WSM): Wedbush raised their rating from Neutral to Outperform. Pre-market: 38.81 +0.67 (1.76%)

Downgrades

Taubman Centers (TCO): ISI Group lowered their rating from Buy to Hold.

Intel (INTC): Nomura lowered their rating from Buy to Hold and lowered their target price from $23.00 to $18.00. Pre-market: 22.55 -0.44 (-1.91%)

Clorox (CLX): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $73.00 to $72.00.

Yingli Green (YGE): Deutsche Bank lowered their rating from Buy to Hold and lowered their target price from $14.80 to $7.70. Pre-market: 7.26 -0.08 (-1.09%)

Coverage Reiterated/Price Target Changed

E*TRADE (ETFC): FBR Capital reiterated their Outperform rating and raised their target price from $17.00 to $18.00. Pre-market: 14.70 -0.02 (-0.14%)

American Express (AXP): FBR Capital reiterated their Market Perform rating and raised their target price from $50.00 to $60.00. Pre-market: 52.12 +0.03 (0.06%)

eBay (EBAY): The Benchmark Company reiterated their Hold rating and raised their target price from $30.00 to $38.00. Pre-market: 33.00 -0.17 (-0.51%)

Earning Reports

AT&T (T): Reported EPS of $0.60 in-line with estimates. Pre-market: 30.18 -0.05 (-0.17%)

Autoliv (ALV): Reported EPS of $1.54 beating estimates by +$0.19. Pre-market: 70.60 +0.80 (1.15%)

Freeport-McMoRan (FCX): Reported EPS of $1.43 beating estimates by +$0.07. Pre-market: 56.28 +0.36 (0.64%)

ITT Educational (ESI): Reported EPS of $2.85 beating estimates by +$0.21. Pre-market: 89.40 -3.19 (-3.45%)

Laboratory Corp (LH): Reported EPS of $1.64 beating estimates by +$0.11.

PepsiCo (PEP): Reported EPS of $1.21 beating estimates by +$0.01. Pre-market: 67.20 -1.29 (-1.88%)

·         Futures at 8:28: Dow +0.47%. S&P +0.52%. Nasdaq +0.23%. Crude 0.00% to $98.40. Gold +0.10% to $1598.50.

·         Europe: London +0.44%. Paris +1.27%. Frankfurt +0.75%.

·         Asia: Japan +0.04% at 10010. Hong Kong -0.07% to 21987. China -1.01% to 2766. India -0.36% to 18436. 

MORNING COFFEE

Apple’s Profits Soar. Apple's (AAPL) FQ3 results blew away analysts expectations as net profit soared to $7.31 billion from year-ago results of only $3.25 billion.  Revenues at the company also soared 82% to $28.6 billion. Sales of the iPhone and iPad remain strong and no details were revealed about the release of the new iPhone 5.  Sales in China were particularly strong. Pre-market: 397.56 +20.71 (5.50%)

Upgrades

Cintas (CTAS): Barrington Research raised their rating from Market Perform to Outperform. Pre-market: 33.51 +2.65 (8.59%)

Express Scripts (ESRX): Citadel raised their rating from Reduce to Neutral and placed a target price of $53.00 on the company. Pre-market: 51.91 +0.06 (0.12%)

Downgrades

Bank of America (BAC): CLSA lowered their rating from Outperform to Buy and lowered their target price from $14.00 to $11.00. Pre-market: 9.68 +0.11 (1.15%)

Coverage Reiterated/Price Target Changed

Apple (AAPL): Oppenheimer reiterated their Outperform rating and raised their target price from $420.00 to $460.00. Pre-market: 397.56 +20.71 (5.50%)

Apple (AAPL): Ticonderoga reiterated their Buy perform rating and raised their target price from $612.00 to $666.00. Pre-market: 397.56 +20.71 (5.50%)

Apple (AAPL): ISI Group reiterated their Buy rating and raised their target price from $425.00 to $480.00. Pre-market: 397.56 +20.71 (5.50%)

Halliburton (HAL): Dahlman Rose reiterated their Buy rating and raised their target price from $74.00 to $92.00. Pre-market: 55.70 +0.32 (0.58%)

Goldman Sachs (GS): FBR Capital reiterated their Outperform rating and lowered their target price from $170.00 to $155.00. Pre-market: 128.85 +0.36 (0.28%)

Earning Reports

EMC (EMC): Reported Q2 EPS of $0.35 beating estimates by +$0.01 on revenue of $4.85 billion. Pre-market: 28.35 +0.97 (3.54%) 

Altria (MO): Reported Q2 EPS of $0.53 in-line with estimates on revenue of $4 billion. Pre-market: 27.00 -0.02 (-0.07%) 

Textron (TXT): Reported Q2 EPS of $0.29 beating estimates by +$0.05 on revenue of $2.7 billion. FY'11 EPS guidance of $1.00-1.15. Pre-market: 23.05 +0.93 (4.20%)

Apple (AAPL): Reported FQ3 EPS of $7.79 beating estimates by +$1.95 on revenue of $28.5 billion. Pre-market: 397.56 +20.71 (5.50%) 

CSX (CSX): Reported Q2 EPS of $0.46 beating estimates by +$0.02 on revenue of $3.01 billion. Pre-market: 26.17 +0.69 (2.71%) 

Stryker (SYK): Reported Q2 EPS of $0.90 in-line with estimates on revenue of $2.05 billion. Pre-market: 59.96 +0.80 (1.35%) 

VMware (VMW): Reported Q2 EPS of $0.51 beating estimates by +$0.04 on revenue of $921 million. Pre-market: 111.59 +5.57 (5.25%) 

·         Futures at 8:12: Dow +0.42%. S&P +0.44%. Nasdaq +0.84%. Crude+1.22% to $98.69. Gold -0.79% to $1588.30.

·         Europe: London +1.06%. Paris +1.46%. Frankfurt +0.35%.

·         Asia: Japan +1.17% to 10005.9. Hong Kong +0.46% to 22004. China -0.10% to 2794. India -0.81% to 18502.

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