MORNING COFFEE

Same Store Sale Rise. December's same-store sales were healthy, with 21 out of 27 stores reporting better than expected numbers. Sales rose 2.9% compared to the previous year. This was the fourth consecutive month of year-on-year gains and the best monthly showing since April 2008. Stores that beat expectations by more than five percentage points included Aeropostale (ARO), Cato Corp. (CATO), Children's Place (PLCE), Saks (SKS), TJX (TJX), and Zumiez (ZUMZ).


Goldman Sachs Sued. Goldman Sachs (GS) is being sued by an Illinois pension fund trying to recover billions of dollars being paid out as bonuses and compensation in 2009. According to the pension fund's filing, Goldman had set aside nearly $17B for compensation as of the end of September, and may pay out as much as $22B for the past year. The suit claims this "highlights the complete breakdown" of corporate oversight and that Goldman's revenue for the year was artificially inflated by government bailouts.


Google Becomes A Utility? Google's (GOOG) energy subsidiary has applied to the Federal Energy Regulatory Commission to become an electricity marketer. If approved this would allow the division to buy and sell bulk power at market prices the way large utilities do. Google says the application will help it better manage its own operations. FERC approval could allow Google to play a role in energy markets and even become a wholesaler of electricity.


Intel Beats AMD. Intel (INTC) unveiled its latest generation of semiconductor chips, a year ahead of rival AMD's (AMD) planned chip release. The chips, which are meant to improve laptop graphics and enable additional features on ATMs and other business, are targeted at the higher-volume but lower-priced segment of the market.

Apollo Group (APOL): reported earnings of $1.47 beating estimates by $0.01 on revenue of $1.3B (+31%) vs. $1.2B.

Lawson Software (LWSN): reported earnings of $0.09 in-line on revenue of $184M
(-11%) vs. $176M.

• Futures at 7:00: Dow +0.1%. S&P +0.1%. Nasdaq +0.1%.

30-year Tsy -0.16%. 10-year -0.15%. 5-year -0.15%. 2-year -0.08%.
Euro -0.1% vs. dolllar. Yen +0.1%. Pound +0.5%.
Crude -0.15% to $82.50. Gold -0.8% to $1,125.

• Asia: Nikkei +1.1% to 10798. Hang Seng +0.1% to 22297. BSE -0.4% to 17540. Shanghai was closed.

• Europe at midday: FTSE flat at 5527. CAC +0.6% to 4048. DAX +0.3%to 6037.