MORNING COFFEE

Verizon Gets iPhone. Verizon (VZ) announced that early 2011 they will begin selling the iPhone (AAPL).  This will end AT&T’s (T) exclusive deal to offer the iPhone, which they have had since 2007. Analysts suggest the Verizon Apple deal could bring in more than 10 million new iPhone customers.

Jobless Claims Fall.  Initial claims for unemployment for the week ending Oct. 2, fell to its lowest level in three months. Initial claims came in at -445,000 which were below economist estimates of -455,000.  Continuing claims came in at 4,462,000.

Downgrades

Iron Mountain (IRM): The Benchmark Company lowered their rating from Buy to Hold.

Costco (COST): McAdams Wright Ragen lowered their rating from Buy to Hold.

Coverage Initiated

Equifax (EFX): RBC Capital Markets initiated coverage with an Outperform rating and target price of $37.00.

Gamestop (GME): Oppenheimer initiated coverage with a Perform rating and target price of $24.00.

BB&T Corp (BBT): Oppenheimer initiated coverage with a Perform rating.

Fifth Third (FITB): Oppenheimer initiated coverage with an Outperform rating and target price of $16.00.

Coverage Reiterated/Price Target Changed

Family Dollar (FDO): Wedbush reiterated their Neutral rating and raised their target price from $40.00 to $41.00.

Family Dollar (FDO): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $48.00 to $49.00.

YUM! Brands (YUM): RBC Capital Markets reiterated their Outperform rating and raised their target price from $49.00 to $55.00.

Amazon.com (AMZN): RBC Capital Markets reiterated their Outperform rating and raised their target price from $161.00 to $181.00.

Zumiez (ZUMZ): Oppenheimer reiterated their Outperform rating and raised their target price from $21.00 to $27.00.

Earning Reports

Marriott (MAR): Reported FQ3 EPS of $0.22 missing estimates by -$0.01 on revenue of $2.65 billion. 

PepsiCo (PEP): Reported FQ3 EPS of $1.22 in-line with estimates on revenue of $15.51 billion.

·         Futures: Dow +0.1%. S&P +0.1%. Nasdaq 0.0%. Crude +0.5% to $83.67. Gold +0.9% to $1359.30.

·         Asia: Japan -0.1% to 9685. Hong Kong 0.0% at 22884. China +1.7% to 2656. India -1.1% to 20315.

·         Europe: London +0.1%. Paris +0.3%. Frankfurt +0.1%.