MORNING COFFEE

October Retail Sales Show Nice Gains. The Commerce Department reported that retail sales for October rose +1.2%, the largest increase in seven months.  Economists were only looking for a gain of +0.7%. The strong showing was helped by strong demand for autos. Excluding autos, retail sales rose +0.4%.  This was the fourth straight increase in retail sales after sales had fallen in May and June.

Germany Pushes Ireland To Accept Bailout. Reports say that Germany is pushing Ireland into talks with the EU's Finance Ministry regarding a request for aid worth €80 billion ($110 billion) between 2011 and 2013. The Irish government is denying that there is a crisis and have stressed that the country is "fully funded till well into 2011. The government is scheduled to release their austerity budget next month, and say that their country’s "hard-won" sovereignty is being threatened by being forced to access the European Financial Stability Facility.

Upgrades

Union Pacific (UNP): Robert W. Baird raised their rating from Neutral to Outperform and raised their target price from $110.00 to $120.00.

Downgrades

WellPoint (WLP): Stifel Nicolaus lowered their rating from Buy to Hold.

UnitedHealth (UNH): Stifel Nicolaus lowered their rating from Buy to Hold.

Akamai Tech (AKAM): Oppenheimer lowered their rating from Outperform to Perform.

Coverage Reiterated/Price Target Changed

Halliburton (HAL): Dahlman Rose reiterated their Buy rating and raised their target price from $47.00 to $53.00.

Peabody Energy (BTU): Brean Murray reiterated their Buy rating and raised their target price from $61.00 to $66.00.

Limited (LTD): RBC Capital Markets reiterated their Outperform rating and raised their target price from $32.00 to $37.00.

Dollar Tree (DLTR): RBC Capital Markets reiterated their Outperform rating and raised their target price from $55.00 to $60.00.

Abercrombie & Fitch (ANF): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $40.00 to $45.00.

Earnings

Lowe's (LOW): Reported EPS of $0.31 beating estimates by +$0.01.

·         Futures at 7:00: Dow +0.2%. S&P +0.3%. Nasdaq +0.55%. Crude +0.7% to $85.45. Gold +0.1% to $1366.30.

·         Asia: Japan +1.1% to 9828. Hong Kong -0.8% to 24027. China +1.0% to 3014. India +0.8% to 20310.

·         Europe: London +0.1%. Paris -0.8%. Frankfurt +0.2%.