MORNING COFFEE

Comerica Bank to Repay TARP. Comerica (CMA) announced a common stock offering of around $800 million to raise money to repay its TARP funds. The news sent shares down -1.9% in after hours trading.

Northrop Drops Air Force Tanker Bid. Northrop Grumman (NOC) is dropping its bid for a multi-billion dollar U.S. Air Force aerial tanker contract.  In a statement the company said the Defense Department's source selection methodology "dramatically favors Boeing's (BA) smaller refueling tanker" and "does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity."

Cisco System To Make Announcement. Cicso (CSCO), the network-equipment maker promised to make a “significant” product announcement today.  In a statement the company said “Cisco will make a significant announcement that will forever change the Internet and its impact on consumers, businesses and government.” Some are speculating that the company will unveil a router capable of transmitting Internet traffic at 120 gigabits per second per slot, or more than 2 terabytes per device.

H&R Block (HRB): Reported FQ3 EPS of $0.16 beating estimates by +$0.01 on revenue of $935 million.

TiVo (TIVO): Reported Q4 EPS of -$0.09 beating estimates by +$0.03 on revenue of $45 million.  The company also gave Q1 guidance below consensus estimates.

Upgrades

YUM! Brands (YUM): UBS upgraded their rating from Neutral to Buy.

Nestle (NSRGY): JP Morgan upgraded their rating from Neutral to Overweight.

Downgrades

Toyota Motor (TM): Standpoint Research downgraded their rating from Buy to Hold.

Comerica (CMA): BMO Capital Markets downgraded their rating from Outperform to Market Perform.

Textron (TXT): JP Morgan downgraded their rating from Overweight to Neutral and set a target price of $22.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Broadpoint AmTech Research reiterated their Buy rating and changed their target price from $264.00 to $280.00.

·         Futures: Dow -0.3%. S&P -0.5%. Nasdaq -0.3%. Crude -1.8% to $80.43. Gold -0.6% to $1117.40.

·         Asia: Nikkei -0.2% to 10568. Hang Seng +0.1% to 21208. Shanghai +0.5% to 3069. BSE -0.3% to 17053.

·         Europe: London -0.7% to 5566. Paris -0.6% to 3879. Frankfurt -0.6% to 5840.