MORNING COFFEE

Companies Protest Google’s Purchase of ITA. Online travel companies, including Expedia (EXPD) and Kayak.com, are opposing Google's (GOOG) planned $700 million purchase of travel software firm ITA. The online travel companies have started FairSearch.org with the aim to convince the Justice Department that the deal should be blocked, since they believe that it would give Google too much influence in the travel sector.  Additionally they are lobbying Congress saying the deal if allowed would end up "bringing consumers higher prices and less choice."

TIPS Have Negative Yield. Yesterday the Treasury offered $10 billion 5 year Treasury Inflation Protection Securities (TIPS) with a negative yield of -0.55%.  This is the first time ever that these securities that hedge against future inflation have had a negative yield.

Buffett Selects Future CIO? Warren Buffett has hired 39 year old Todd Combs, from a small hedge fund in Connecticut called Castle Point Capital.  Mr. Combs will manage a significant portion of Berkshire Hathaway’s (BRKA/BRKB) $100 billion portfolio. Buffett said Combs is "not going to take over the whole investment function as long as I'm around." Two other candidates, including Li Lu, have taken themselves out of the running for the job.

Upgrades

Freeport-McMoRan (FCX): Argus raised their rating from Hold to Buy and placed a target price of $113.00 on the company.

Men's Wearhouse (MW): Stifel Nicolaus raised their rating from Hold to Buy and placed a target price of $32.00 on the company.

Downgrades

Men's Wearhouse (MW): Wedbush lowered their rating from Outperform to Neutral and placed a target price of $27.00 on the company.

Guess? (GES): Wedbush lowered their rating from Outperform to Neutral and placed a target price of $46.00 on the company.

Blue Nile (NILE): MKM Partners lowered their rating from Buy to Neutral and lowered their target price from $57.00 to $42.00.

Coverage Initiated

Medco Health Solutions (MHS): RBC Capital Markets initiated coverage with an Outperform rating and target price of $68.00.

Express Scripts (ESRX): RBC Capital Markets initiated coverage with an Outperform rating and target price of $57.00.

CVS Caremark (CVS): RBC Capital Markets initiated coverage with a Sector Perform rating and target price of $34.00.

Coverage Reiterated/Price Target Changed

SAP AG (SAP): Wedbush reiterated their Underperform rating and raised their target price from $44.00 to $49.00.

Texas Instruments (TXN): Stifel Nicolaus reiterated their Buy rating and raised their target price from $29.00 to $34.00.

Texas Instruments (TXN): Auriga U.S.A reiterated their Sell rating and raised their target price from $22.00 to $24.00.

Wells Fargo (WFC): Oppenheimer reiterated their Outperform rating and raised their target price from $36.00 to $42.00.

JPMorgan Chase (JPM): Oppenheimer reiterated their Outperform rating and raised their target price from $51.00 to $60.00.

Citigroup (C): Oppenheimer reiterated their Outperform rating and raised their target price from $4.45 to $5.20.

Verizon (VZ): Hilliard Lyons reiterated their Buy rating and raised their target price from $32.00 to $34.00.

Earnings

CIT Group (CIT): Reported Q3 EPS of $0.66 beating estimates by +$0.17.

Coach (COH): Reported Q3 EPS of $0.63 beating estimates by +$0.08 on revenue of $912 million. 

DuPont (DD): Reported Q3 EPS of $0.40 beating estimates by +$0.06 on revenue of $7 billion. 

Wyndham (WYN): Reported Q3 EPS of $0.68 beating estimates by +$0.05 on revenue of $1.1 billion. 

Amgen (AMGN): Reported Q3 EPS of $1.36 beating estimates by +$0.09 on revenue of $3.8 billion.

Synovus Financial (SNV): Reported Q3 EPS of -$0.25 missing estimates by -$0.03.

Texas Instruments (TXN): Reported Q3 EPS of $0.71 beating estimates by +$0.02 on revenue of $3.7 billion.

·         Futures: Dow 0.0%. S&P 0.0%. Nasdaq 0.0%. Crude 0.0% at $82.50. Gold -0.1% to $1337.

·         Asia: Japan -0.3% to 9377. Hong Kong -0.1% to 23601. China -0.3% to 3042. India -0.4% to 20221.

·         Europe: London -0.7%. Paris -0.5%. Frankfurt -0.1%.