MORNING COFFEE

Genzyme Fights Hostile Bid. Genzyme's (GENZ) board has rejected Sanofi-Aventis (SNY) $69.00 per share offer and said it was "inadequate and opportunistic."  Genzyme is said to now be exploring alternative strategic options.  Additionally there are reports the Genzyme has had preliminary communications with GlaxoSmithKline (GSK), Johnson & Johnson (JNJ), and Pfizer (PFE).

Microsoft Looking To Acquire Adobe. The New York Times reported that Microsoft CEO Steve Ballmer and Adobe’s Shantanu Narayen, had meeting in which they discussed Apple's (AAPL) dominance in the mobile market and the possibility of acquiring Adobe as a way to combat Apple’s dominance. Shares of Adobe (ADBE) closed up +11.5% yesterday on heavy volume.

Upgrades

BMC Software (BMC): RBC Capital Markets raised their rating from Sector Perform to Outperform and raised their target price from $44.00 to $50.00.

Coverage Initiated

Marvell (MRVL): The Benchmark Company initiated coverage with a Buy rating.

VMware (VMW): FBR Capital initiated coverage with a Market Perform rating and target price of $82.00.

Coverage Resumed

Compuware (CPWR): Wedbush resumed coverage with an Outperform rating and target price of $11.00.

Coverage Reiterated/Price Target Changed

Humana (HUM): Wedbush reiterated their Outperform rating and raised their target price from $53.00 to $58.00.

Hansen Natural (HANS): Stifel Nicolaus reiterated their Buy rating and raised their target price from $47.00 to $51.00.

Apple (AAPL): Oppenheimer reiterated their Outperform rating and raised their target price from $330.00 to $345.00.

Verizon (VZ): Auriga U.S.A reiterated their Hold rating and raised their target price from $29.00 to $33.00.

Earning Reports

Alcoa (AA): Reported FQ3 EPS of $0.09 beating estimates by +$0.04 on revenue of $5.3 billion.

Micron Technology (MU): Reported FQ4 EPS of $0.32 missing estimates by -$0.06 on revenue of $2.5 billion. 

·         Futures: Dow -0.4%. S&P -0.4%. Nasdaq -0.35%. Crude -1.5% to $80.42. Gold -0.6% to $1327.20.

·         Asia: Japan -1.0% to 9589. Hong Kong +0.3% to 22944. China +3.1% to 2739. India -0.3% to 20250.

·         Europe: London -0.8%. Paris -0.7%. Frankfurt -0.4%.