MORNING COFFEE

Sanofi-Aventis In Talks With Genzyme.  Reports say that Sanofi-Aventis (SNY) has sent a formal takeover proposal to Genzyme (GENZ) valuing the company at $18.4B, or $69 per share. Other companies with possible interst in Genzyme include: GlaxoSmithKline (GSK), Johnson & Johnson (JNJ) and Pfizer (PFE).

Economy Still Shaky. Yesterday Fed Chairman Ben Bernanke said "We have a considerable way to go to achieve full recovery in our economy," "and many Americans are still grappling with unemployment, foreclosure, and lost savings." Additionally this morning Treasury Secretary Timothy Geithner said that the unemployment rate could rise before it begins to fall.  He also said he was in favor of allowing the Bush tax cuts to expire, even though most economist believe it would be detrimental to the economy and could even cause a double dip recession.

Earning Reports

Baker Hughes (BHI): Reported Q2 EPS of $0.41 missing estimates by -$0.02 on revenue of $3.37 billion. 

Cognizant Technology Solutions (CTSH): Reported Q2 EPS of $0.56 beating estimates by +$0.04 on revenue of $1.10 billion.

Emerson Electric Company (EMR): Reported FQ3 EPS of $0.78 beating estimates by +$0.10 on revenue of $5.64 billion.

NYSE Euronext (NYX): Reported Q2 EPS of $0.64 beating estimates by +$0.05 on revenue of $654 million. 

·         Futures: Dow 0.0%. S&P -0.1%. Nasdaq +0.1%. Crude +0.7% to $81.90. Gold +0.2% to $1188.

·         Asia: Japan +1.3% to 9694. Hong Kong +0.2% to 21458. China -1.7% to 2627. India +0.2% to 18115.

·         Europe: London -0.2%. Paris -0.3%. Frankfurt +0.2%.