MORNING COFFEE

G20 Meeting Ends With A Fizzle. World leaders wrapped up their two-day G-20 summit in Seoul South Korea.  In a joint statement the leaders pledged to "move toward more market-determined exchange rate systems" to reflect "underlying economic fundamentals." Additionally the language about 'undervalued' currencies was dropped due to Chinese pressures. Overall the meeting was short on specifics and pushed many issues and negotiations to future meetings. G-20 leaders also took on the Irish debt crisis.  The finance ministers from Germany, France and the U.K. issued a joint statement said holders of Irish government debt will not be required to take writedowns.

Eurozone Growth Slows. The eurozone economy grew at only +0.4% in Q3, down from Q2’s +1% growth.  Again most of the eurozone growth came from Germany’s economy which grew +0.7% for the quarter.

China Stocks Tank. Chinese stocks closed down -5.2% as reports say the Chinese government is preparing to limit foreigners' property purchases. Reports say that foreign companies will only be allowed to purchase property for their own use, and foreigners living in China will be able to buy one residential unit only for their own use. Additionally, there are more reports that may again raise interest rates to curb inflation.

Coverage Initiated

Williams-Sonoma (WSM): Robert W. Baird initiated coverage with an Outperform rating and target price of $42.00.

Bed Bath & Beyond (BBBY): Robert W. Baird initiated coverage with a Neutral rating and target price of $48.00.

Coverage Reiterated/Price Target Changed

NVIDIA (NVDA): Stifel Nicolaus reiterated their Buy rating and raised their target price from $14.00 to $16.00.

Viacom (VIA.B): RBC Capital Markets reiterated their Outperform rating and raised their target price from $42.00 to $45.00.

Tim Hortons (THI): RBC Capital Markets reiterated their Outperform rating and raised their target price from $42.00 to $45.00.

Walt Disney (DIS): RBC Capital Markets reiterated their Outperform rating and raised their target price from $39.00 to $41.00.

Advance Auto (AAP): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $66.00 to $70.00.

Earnings

DR Horton (DHI): Reported FQ4 EPS of -$0.03 beating estimates by +$0.01 on revenue of $926 million.

Wendy's/Arby's (WEN): Reported FQ3 EPS of $0.05 beating estimates by +$0.01.  The company also raised their quarterly dividend by 33% to $0.02/share, and authorized another $170 million to its stock repurchase program.

Disney (DIS): Reported FQ4 EPS of $0.45 missing estimates by -$0.01 on revenue of $9.7 billion.

Nvidia (NVDA): Reported Q3 EPS of $0.15 beating estimates by +$0.01 on revenue of $844 million.

·         Futures at 7:00: Dow -0.4%. S&P -0.6%. Nasdaq -0.6%. Crude -2.15% to $85.92. Gold -1.2% to $1386.20.

·          Asia: Japan -1.4% to 9725. Hong Kong -1.9% to 24223. China -5.2% to 2985. India -2.1% to 20157.

·          Europe: London -0.3%. Paris -1.0%. Frankfurt -0.3%.