MORNING COFFEE

Microsoft raises Dividend. Microsoft (MSFT)announced they are raising their dividend by $0.03 to $0.16, and said they will borrow up to $6 billion in short- and long-term debt. In their announcement the company said the move "reflects our commitment to returning capital to our shareholders and our confidence in the long-term growth of the company."

Deutsche Bank Gives Profit Warning. Deutsche Bank, Germany’s largest bank warned it would book a Q3 loss stemming from its purchase of Postbank, and from "the poorer market conditions during the summer months." Shares of the company are getting hit hard in Frankfurt and in the U.S. premarket trading.

Downgrades

Nokia (NOK): Morgan Keegan lowered their rating from Market Perform to Underperform and lowered their target price from $9.70 to $7.80.

Adobe Systems (ADBE): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $41.00 to $31.00.

Adobe Systems (ADBE): ISI Group lowered their rating from Buy to Hold and lowered their target price from $43.00 to $30.00.

Adobe Systems (ADBE): Robert W. Baird lowered their rating from Outperform to Neutral and lowered their target price from $44.00 to $36.00.

Coverage Initiated

Tellabs (TLAB): RBC Capital Markets initiated coverage with a Sector Perform rating and target price of $9.00.

NetLogic (NETL): Auriga U.S.A initiated coverage with a Hold rating and target price of $29.00.

Coverage Reiterated/Price Target Changed

Clorox (CLX): Caris & Company reiterated their Average rating and lowered their target price from $67.00 to $65.00.

AutoZone (AZO): Wedbush reiterated their Neutral rating and raised their target price from $200.00 to $228.00.

Adobe Systems (ADBE): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $45.00 to $40.00.

Earning Reports

Adobe (ADBE): Reported FQ3 EPS of $0.54 beating estimates by +0.05 on revenue of $990 million.

Cintas (CTAS): Reported FQ1 EPS of $0.40 beating estimates by +0.02 on revenue of $924 million. 

Darden Restaurants (DRI): Reported FQ1 EPS of $0.80 beating estimates by +0.03 on revenue of $1.8 billion.