MORNING COFFEE

Google Has Great Earnings Report. Google (GOOG) easily beat their earnings expectations (see details below).  The company reported a 32% jump in profit and 23% increase in revenue.  The company said that its "core business grew very well, and our newer businesses - particularly display and mobile - continued to show significant momentum."

Banks Tank On Foreclosure News. Bank stock got hit hard yesterday as the foreclosure mess escalates. Several major banks have stopped processing foreclosures due to improper paperwork, missing documents and forgery and many are calling for a nationwide stop on all foreclosures.  Bank bonds fell and banks' credit-default swaps widened. The fear is that problems related to foreclosures aren't easily resolved technical glitches but rather widespread flaws.  In yesterday's trading, Citigroup (C) -4.5%, Goldman Sachs (GS) -2%, Bank of America (BAC) -5.2%, Wells Fargo (WFC) -4.2%, Morgan Stanley (MS) -1.9%, JPMorgan Chase (JPM) -2.8%.

Upgrades

Google (GOOG): Caris & Company raised their rating from Average to Buy and raised their target price from $550.00 to $700.00.

Chico's FAS (CHS): KeyBanc Capital Markets raised their rating from Hold to Buy and placed a target price of $13.00 on the company.

Downgrades

Urban Outfitters (URBN): KeyBanc Capital Markets raised their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Transocean (RIG): RBC Capital Markets reiterated their Outperform rating and raised their target price from $66.00 to $75.00.

Google (GOOG): RBC Capital Markets reiterated their Outperform rating and raised their target price from $600.00 to $690.00.

Google (GOOG): Stifel Nicolaus reiterated their Buy rating and raised their target price from $600.00 to $650.00.

Google (GOOG): The Benchmark Company reiterated their Buy rating and raised their target price from $600.00 to $650.00.

Google (GOOG): Oppenheimer reiterated their Outperform rating and raised their target price from $600.00 to $640.00.

Google (GOOG): Kaufman Bros reiterated their Buy rating and raised their target price from $630.00 to $650.00.

Advanced Micro (AMD): FBR Capital reiterated their Market Perform rating and raised their target price from $9.00 to $10.00.

Earning Reports

GE (GE): Reported Q3 EPS of $0.29 beating estimates by +$0.02 on revenue of $35.89 billion.

Infosys Technologies (INFY): Reported FQ2 EPS of $0.65 beating estimates by +$0.04 on revenue of $1.50 billion.

Mattel (MAT): Reported Q3 EPS of $0.77 beating estimates by +$0.01 on revenue of $1.83 billion. 

Advanced Micro Devices (AMD): Reported Q3 EPS of $0.15 beating estimates by +$0.09 on revenue of $1.6 billion.

Google (GOOG): Reported Q3 EPS of $7.64 beating estimates by +$0.96 on revenue of $5.5 billion.

J.B. Hunt Transport Services (JBHT): Reported Q3 EPS of $0.43 missing estimated by -$0.01 on revenue of $986 million. 

·         Futures: Dow -0.1%. S&P -0.2%. Nasdaq +0.1%. Crude 0.0% at $82.69. Gold +0.1% to $1379.30.

·         Asia: Japan -0.9% to 9500. Hong Kong -0.4% to 23758. China +3.2% to 2971. India -1.8% to 20125.

·         Europe: London -0.3%. Paris +0.1%. Frankfurt +0.2%.