MORNING COFFEE

Dell Enters Smartphone Market. Dell (DELL) unveiled its first smartphone called the Aero for the U.S. market yesterday.  The new smartphone will use Google’s (GOOG) popular Android operating system.  Dell says it is the lightest phone available that use Android. The new phone will sell for $99 with a contract from AT&T (T), and $299 without one.

Ireland’s Debt Downgraded. S&P lowered the credit rating on Ireland's government debt one notch to AA- from AA, citing the cost of propping up the country's financial sector.  S&P said it projects that Ireland's government debt will rise toward 113% of gross domestic product in 2012.

Upgrades

La-Z-Boy (LZB): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $10.00 on the company.

DR Horton (DHI): Ticonderoga raised their rating from Neutral to Buy and placed a target price of $13.00 on the company.

Corning (GLW): Oppenheimer raised their rating from Perform to Outperform and placed a target price of $20.00 on the company.

Coverage Initiated

Hewlett-Packard (HPQ): Wedbush initiated coverage with a Neutral rating and target price of $44.00.

Coverage Reiterated/Price Target Changed

Medtronic (MDT): Wedbush reiterated their Neutral rating and lowered their target price from $42.00 to $36.00.

Medtronic (MDT): Oppenheimer reiterated their Outperform rating and lowered their target price from $48.00 to $42.00.

Medco Health Solutions (MHS): Argus reiterated their Buy rating and lowered their target price from $74.00 to $60.00.

Big Lots (BIG): Wedbush reiterated their Neutral rating and lowered their target price from $37.00 to $35.00.

Earning Reports

Toll Brothers (TOL): Reported FQ3 EPS of $0.16 beating estimates by +$0.30 on revenue of $454.2 million.

·         Futures: Dow 0.0%. S&P 0.0%. Nasdaq -0.2%. Crude +0.1% to $71.72. Gold +0.4% to $1238.40.

·         Asia: Japan -1.7% to 8845. Hong Kong -0.1% to 20635. China -2.0% to 2597. India -0.7% to 18180.

·         Europe: London -0.5%. Paris -0.5%. Frankfurt -0.3%.