MORNING COFFEE

Warren Buffett changes Stock Holdings. Warren Buffett’s Berkshire Hathaway (BRK.A/BRK.B) disclosed on their 13f filing to the SEC several changes to his investment portfolio.  The company whose total investment holdings exceed $110 billion is closely watched by investors around the world.  For the quarter ending September 30 the company’s publicly trading holdings decreased in value from $50.9 billion to $48.9 billion.  The company added two new holdings, reduced four holdings and liquidated five holdings.

Buffett purchased 2 million shares of Bank of New York Mellon (BK) and 3.9 million shares of Fiserv (FISV).  Additionally Buffett almost doubled his holdings of Johnson & Johnson (JNJ) to 42.6 million shares.

Companies liquidated include: Carmax (KMX), Republic Services (RSG), Iron Mountain (IRM), NRG Energy (NRG), and Home Depot (HD).

Reduced holding included: Comcast (CMCSA), Ingersoll-Rand (IR), Nike (NKE), Nalco (NLC).

Upgrades

Cree (CREE): Morgan Keegan raised their rating from Market Perform to Outperform and raised their target price from $48.00 to $75.00.

Autodesk (ADSK): ISI Group raised their rating from Hold to Buy and placed a target price of $43.00 on the company.

Downgrades

Bucyrus (BUCY): RBC Capital Markets lowered their rating from Outperform to Sector Perform.

Bucyrus (BUCY): Robert W. Baird lowered their rating from Outperform to Neutral.

Eaton Vance (EV): Ticonderoga lowered their rating from Neutral to Sell and placed a target price of $25.00 on the company.

Coverage Reiterated/Price Target Changed

Halliburton (HAL): Argus reiterated their Buy rating and raised their target price from $42.00 to $48.00.

Joy Global (JOYG): RBC Capital Markets reiterated their Outperform rating and raised their target price from $77.00 to $88.00.

Caterpillar (CAT): RBC Capital Markets reiterated their Outperform rating and raised their target price from $92.00 to $98.00.

Urban Outfitters (URBN): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $45.00 to $40.00.

Urban Outfitters (URBN): Brean Murray reiterated their Buy rating and lowered their target price from $45.00 to $39.00.

Earning Reports

Home Depot (HD): Reported Q3 EPS of $0.51 beating estimates by +$0.03 on revenue of $16.6 billion.

Jacobs Engineering Group (JEC): Reported FQ4 EPS of $0.61 missing estimates by -$0.01 on revenue of $2.3 billion.

Nordstrom (JWN): Reported Q3 EPS of $0.53 beating estimates by +$0.01 on revenue of $2.1 billion.

Urban Outfitters (URBN): Reported Q3 EPS of $0.43 beating estimates by +$0.01 on revenue of $574 million.

Abercrombie & Fitch (ANF): Reported EPS $0.56 beating estimates by +$0.05.

The TJX Companies (TJX): Reported Q3 FY11 EPS of $0.92 beating estimates by +$0.01 on revenues of $5.5 billion.

·         Futures at 7:00: Dow -0.7%. S&P -0.6%. Nasdaq -0.8%. Crude -1.4% to $83.67. Gold -1.0% to $1355.50.

·         Asia: Japan -0.3% to 9797.1. Hong Kong -1.4% to 23693. China -4.0% to 2895. India -2.2% to 19865.

·         Europe: London -1.5%. Paris -1.7%. Frankfurt -0.8%.