MORNING COFFEE

The G20 begins meeting. The G20, which consist leaders from major rich and developing nations, are set to begin their meeting in South Korea.  The G20 leaders will be trying develop plans to help the global recovery.  Tensions could run high as the leaders discuss currency manipulation, trade gaps and protectionism.  Some countries have already criticized the U.S. last week after the Federal Reserve announced  QE2.  QE2 will devalue the dollar making our exports less expensive and foreign imports more expensive.  The U.S. and others counties have also criticized China for holding its currency artificially low giving the country an unfair export advantage.

Downgrades

Dick's Sporting Goods (DKS): Longbow lowered their rating from Buy to Neutral.

Cisco Systems (CSCO): Wunderlich lowered their rating from Buy to Hold and lowered their target price from $28.00 to $22.00.

Coverage Initiated

Six Flags (SIX): Merriman initiated coverage with a Buy rating.

Coverage Reiterated/Price Target Changed

Harley-Davidson (HOG): Longbow reiterated their Buy rating and raised their target price from $34.00 to $40.00.

PETsMART (PETM): Wedbush reiterated their Outperform rating and raised their target price from $38.00 to $43.00.

Dollar Tree (DLTR): Wedbush reiterated their Outperform rating and raised their target price from $52.00 to $59.00.

Cisco Systems (CSCO): Wedbush reiterated their Outperform rating and lowered their target price from $27.00 to $25.00.

Cisco Systems (CSCO): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $27.00 to $25.00.

Cisco Systems (CSCO): Kaufman Bros reiterated their Buy rating and lowered their target price from $28.00 to $27.00.

Red Hat (HAT): ISI Group reiterated their Buy rating and raised their target price from $44.00 to $49.00.

Earnings

Tim Hortons (THI): Reported EPS of $0.54 beating estimates by +$0.01.

Viacom (VIA.B): Reported Q3 EPS of $0.75 beating estimates by +$0.06 on revenue of $3.3 million.

Cisco Systems (CSCO): Reported FQ1 EPS of $0.42 beating estimates by +$0.02 on revenue of $10.75 billion.

·         Futures at 7:00: Dow -0.3%. S&P -0.45%. Nasdaq -0.7%. Crude +0.9% to $88.59. Gold +1.1% to $1414.90.

·          Asia: Japan +0.3% to 9861. Hong Kong +0.8% to 24700. China +1.0% to 3148. India -1.4% to 20589.

·         Europe: London -0.1%. Paris -0.5%. Frankfurt 0.0%.