MORNING COFFEE

Sanofi-Aventis Offers to Buy Genzyme.  Sanofi-Aventis (SNY) is reportedly in informal talks with Genzyme (GENZ) to take over the company in a unsolicited bid.  Some analysts believe that other companies may come forward expressing interest in Genzyme.

Upgrades

Costco (COST): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $68.00 on the company.

Downgrades

Wal-Mart (WMT): Stifel Nicolaus lowered their rating from Buy to Hold.

Mosaic (MOS): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Initiated

Dow Chemical (DOW): Dahlman Rose initiated coverage with a Hold rating.

Coverage Reiterated/Price Target Changed

Fluor (FLR): Stifel Nicolaus reiterated their Buy rating and raised their target price from $57.00 to $60.00.

RadioShack (RSH): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $27.00 to $25.00.

Comcast (CMCSA): Kaufman Bros reiterated their Hold rating and raised their target price from $20.00 to $21.00.

Earning Reports

CIT Group (CIT): Reported Q2 EPS of $0.71 beating estimates by +$0.38.

DuPont (DD): Reported Q2 EPS of $1.17 beating estimates by +$0.24 on revenue of $8.61 billlion.

Lockheed Martin (LMT): Reported Q2 EPS of $1.96 beating estimates by +$0.18 on revenue of $11.4 billlion.

SAP AG (SAP): Reported Q2 EPS of $0.62 beating estimates by +$0.03 on revenue of $3.74 billion.

Teva Pharmaceutical Industries (TEVA): Reported Q2 EPS of $1.08 beating estimates by +$0.04 on revenue of $3.80 billion.

·         Futures: Dow +0.4%. S&P +0.5%. Nasdaq +0.5%. Crude +0.1% to $79.07. Gold -0.1% to $1182.

·         Asia: Japan -0.1% to 9497. Hong Kong +0.6% to 20973. China -0.5% to 2575. India +0.3% to 18078.

·         Europe: London +0.8%. Paris +1.1%. Frankfurt +0.6%.