MORNING COFFEE

Borders To File Bankruptcy. Reports say that Borders (BGP) will file for bankruptcy and close at least 150 stores as soon this month. The company is working with Bank of America (BAC) and GE’s (GE) finance arm to finalize about $500M-550M in debtor-in-possession financing. In yesterday's trading, Borders shares fell -35.6% (and is down another -10.6% premarket.

Coverage Initiated

Dollar General (DG): Wedbush initiated coverage with an Outperform rating and target price of $35.00.

Coverage Reiterated/Price Target Changed

UPS (UPS): RBC Capital Markets reiterated their Outperform rating and raised their target price from $85.00 to $95.00.

Broadcom (BRCM): Stifel Nicolaus reiterated their Buy rating and lowered their target price from $51.00 to $48.00.

Broadcom (BRCM): FBR Capital reiterated their Outperform rating and lowered their target price from $52.00 to $49.00.

Broadcom (BRCM): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $50.00 to $47.00.

General Electric (GE): Oppenheimer reiterated their Outperform rating and raised their target price from $23.00 to $25.00.

Emerson (EMR): Oppenheimer reiterated their Perform rating and raised their target price from $61.00 to $65.00.

Earning Reports

Mattel (MAT): Reported Q4 EPS of $0.89 beating estimates by +$0.03 on revenue of $2.12 billion, up +8.7%.

Thermo Fisher (TMO): Reported Q4 EPS of $1.00 beating estimates by +$0.05 on revenue of $2.78 billion, down -2.1%.

Whirlpool (WHR): Reported Q4 EPS of $2.11 missing estimates by -$0.15 on revenue of $5.04 billion, up +3.6%.

AFLAC (ALF): Reported Q4 EPS of $1.33 missing estimates by -$0.02 on revenue of $5.3 billion, up +15%. 

Broadcom (BRCM): Reported Q4 EPS of $0.58 missing estimates by -$0.16 on revenue of $1.9 billion, up +45%.

Electronic Arts (ERTS): Reported FQ3 EPS of $0.59 beating estimates by +$0.02 on revenue of $1.4 billion, up +5%.

·         Futures at 7:00: Dow 0.0%. S&P 0.0%. Nasdaq -0.1%. Crude +0.15% to $90.91. Gold -0.3% to $1335.

·         Europe: London +0.7%. Paris -0.2%. Frankfurt -0.1%.

·         Asia: Japan +1.8% to 10457. Hong Kong +1.8% to 23909. China +0.3% to 2799. India +0.4% to 18091.