MORNING COFFEE

Sanofi-Aventis Extends Offer To Genzyme. Sanofi-Aventis (SNY) is expected to  extend its $18.5 billion tender offer for Genzyme (GENZ).  The two companies have been locked in a stalemate for several months. Sanofi’s current offer of $69.00 per share is set to expire on Friday.  

House Repeals Healthcare Reform Law. Yesterday the House of Representatives with bipartisan support voted 245-189 to repeal President Obama's healthcare reform law. The bill is not expected to pass the Senate and if passed is expected to be vetoed by President Obama. 

Downgrades

Goldman Sachs (GS): Ticonderoga lowered their rating from Buy to Neutral.

Coverage Initiated

VMware (VMW): Collins Stewart initiated coverage with a Hold rating and target price of $92.00.

Coverage Reiterated/Price Target Changed

Marathon Oil (MRO): Oppenheimer reiterated their Outperform rating and raised their target price from $39.00 to $52.00.

Raymond James (RJF): Ticonderoga reiterated their Buy rating and raised their target price from $35.00 to $40.00.

Goldman Sachs (GS): FBR Capital Oppenheimer reiterated their Outperform rating and raised their target price from $180.00 to $190.00.

Earning Reports

UnitedHealth (UNH): Reported Q4 EPS of $0.94 beating estimates by +$0.10 on revenue of $24.03 billion, up +10.3%.

Tyco Electronics (TEL): Reported FQ1 EPS of $0.73 beating estimates by +$0.05 on revenue of $3.2 billion, up +10.7%.

PNC FINL SVCS GROUP (PNC): Reported Q4 EPS of $1.50 beating estimates by +$0.12 on revenue of $3.90 billion, down -20.1%.

eBay (EBAY): Reported Q4 EPS of $0.52 beating estimates by +$0.05 on revenue of $2.5 billion, up +5%. Shares +5.6% afterhours.

Xilinx (XLNX): Reported FQ3 EPS of $0.58 beating estimates by +$0.06 on revenue of $567 million, up +11%.  Shares -0.4% afterhours.

·         Futures at 7:00: Dow -0.2%. S&P -0.1%. Nasdaq -0.1%. Crude -0.45% to $90.45. Gold -0.4% to $1364.20.

·         Europe: London -1.4%. Paris -0.4%. Frankfurt -0.8%.

·         Asia: Japan -1.1% to 10437. Hong Kong -1.7% to 24004. China -2.9% to 2678. India +0.4% to 19047.