MORNING COFFEE

U.S. Payrolls Decline. The Labor Department reported today that payrolls declined by 125,000 last month. Economist had estimated that payrolls would only fall by 100,000. The jobless rate fell to 9.5% from 9.7%.

Google Buys ITA. Google (GOOG) has purchased ITA Software for $700 million.  The purchase is Google’s largest acquisition and allows the company to enter the online travel industry. 

Sanofi-Aventis Looking To Buy Company. Reports say Sanofi-Aventis (SNY) is preparing for an acquisition that could be worth $20 billion.  Sources said CEO Chris Viehbacher briefed the board on the deal this week at a special meeting. The acquisition target has not been identified.

Upgrades

BJ's Wholesale (BJ): Jefferies raised their rating from Hold to Buy and raised their target price from $38.00 to $55.00.

Coverage Initiated

News Corp (NWSA): Wedbush initiated coverage with an Outperform rating and target price of $15.50.

CBOE Holdings (CBOE): Stifel Nicolaus initiated coverage with a Hold rating.

Coverage Reiterated/Price Target Changed

Harley-Davidson (HOG): Longbow reiterated their Buy rating and lowered their target price from $38.00 to $34.00.

BP (BP): The Benchmark Company reiterated their Buy rating and lowered their target price from $49.00 to $41.00.

Apollo Group (APLO): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $70.00 to $60.00.

·         Futures: Dow 0.0%. S&P 0.0%. Nasdaq +0.2%. Crude -0.1% to $72.85. Gold +0.45% to $1212.10.

·         Asia, Japan  +0.1% to 9204. Hong Kong -1.1% to 19905. China +0.4% to 2383. India  -0.3% to 17461.

·         Europe London  +0.6%. Paris +0.2%. Frankfurt  +0.3%.