MORNING COFFEE

Disney to Acquire Playdom. Disney (DIS) announced that it will be purchasing social-games maker Playdom in a deal worth up to $763 million. Companies are enthusiastic about social online games because the high growth rate.

UnitedHealth to Acquire Executive Health. UnitedHealth (UNH) has been reported to be close to a deal with Executive Health Resources to purchase the company for $1.5 billion.  The purchase of Executive Health Resources would be UnitedHealth's fifth acquisition this year.

Upgrades

NASDAQ (NDAQ): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $23.00 on the company.

Downgrades

RF Micro Device (RFMD): Charter Equity lowered their rating from Buy to Market Perform.

Coverage Initiated

Capital One (COF): Oppenheimer initiated coverage with a Perform rating.

Coverage Reiterated/Price Target Changed

U.S. Steel (X): Dahlman Rose reiterated their Buy rating and lowered their target price from $80.00 to $61.00.

Norfolk Southern (NSC): Stifel Nicolaus reiterated their Buy rating and raised their target price from $74.00 to $76.00.

Broadcom (BRCM): Brigantine reiterated their Buy rating and raised their target price from $43.00 to $47.00.

Broadcom (BRCM): FBR Capital reiterated their Outperform rating and raised their target price from $41.00 to $42.00.

Earning Reports

AFLAC (AFL): Reported Q2 EPS of $1.35 beating estimates by +$0.02 on revenue of $5 billion.

Broadcom (BRCM): Reported Q2 EPS of $0.52 missing estimates by -$0.10 on revenue of $1.6 billion.

DreamWorks Animation SKG (DWA): Reported Q2 EPS of $0.27 beating estimates by +$0.05 on revenue of $158 million. 

Eastman Kodak (EK): Reported Q2 EPS of -$0.51 missing estimates by -$0.19 on revenue of $1.56 billion.

International Game Technology (IGT): Reported FQ3 EPS of $0.21 in-line on revenue of $490 million.

Sprint Nextel (S): Reported Q2 EPS of -$0.15 beating estimates by +$0.05 on revenue of $8.02 billion. 

·         Futures: Dow -0.1%. S&P -0.1%. Nasdaq 0.0%. Crude -0.35% to $77.23. Gold +0.3% to $1161.80.

·         Asia: Japan +2.7% to 9753. Hong Kong +0.6% to 21091. China +2.3% to 2634. India -0.7% to 17957.

·         Europe: London -0.6%. Paris +0.1%. Frankfurt -0.6%.