MORNING COFFEE

Cisco Announces Buyback Plan. Cisco (CSCO) announced that has plans for up to $10 billion in additional stock repurchases. Cisco's shares are up +1.0% in the premarket.

KKR Looks To Buy Del Monte Foods. KKR (KKR) announced that it is in advanced talks to purchase Del Monte Foods (DLM).  Reports say that KKR has offered $18.50/share, valuing the company at $3.6 billion. In yesterday's trading, Del Monte rose +8.3% and shares are up + 9.8% in premarket trading.

China Raises Rates Again. In an attempt to slow inflation in China the government has raised its reserve ratio by another 50 bps, effective Nov. 29.  This is the fifth increase this year. Reports also say that the PBOC may have ordered select banks to set aside even more reserves.

Coverage Initiated

EMC (EMC): Wunderlich initiated coverage with a Buy rating and target price of $28.00.

VMware (VMW): Wunderlich initiated coverage with a Hold rating and target price of $80.00.

Coverage Reiterated/Price Target Changed

Dell (DELL): ISI Group reiterated their Hold rating and raised their target price from $15.00 to $16.00.

Intuit (INTC): ISI Group reiterated their Hold rating and raised their target price from $44.00 to $55.00.

Salesforce.com (CRM): FBR Capital reiterated their Market Perform rating and raised their target price from $85.00 to $110.00.

Salesforce.com (CRM): ISI Group reiterated their Buy rating and raised their target price from $125.00 to $148.00.

Earning Reports

Autodesk (ADSK): Reported Q3 EPS of $0.32 in-line on revenue of $477 million. 

Dell (DELL): Reported Q3 EPS of $0.45 beating estimates by +$0.12 on revenue of $15.4 billion.

Foot Locker (FL): Reported Q3 EPS of $0.33 beating estimates by +$0.16 on revenue of $1.3 billion. 

Gap (GPS): Reported Q3 EPS of $0.48 in-line on revenue of $3.7 billion.

Intuit (INTU): Reported FQ1 EPS of -$0.12 in-line on revenue of $532 million. 

Marvell Technology Group (MRVL): Reported Q3 EPS of $0.45 beating estimates by +$0.02 on revenue of $959 million.

Salesforce.com (CRM): Reported Q3 EPS of $0.32 beating estimates by +$0.01 on revenue of $429 million.

·         Futures at 7:00: Dow -0.2%. S&P -0.2%. Nasdaq -0.3%. Crude +0.3% to $82.12. Gold +0.3% to $1357.40.

·         Asia: Japan +0.1% to 10022. Hong Kong -0.1% to 23606. China +0.8% to 2889. India -1.7% to 19585.

·         Europe: London -0.8%. Paris -0.5%. Frankfurt -0.1%.