MORNING COFFEE

NYSE Euronext Merger.  NYSE Euronext (NYX) said it's in advanced talks with Deutsche Boerse (DBOEY) about a possible merger that would create the world's largest exchange by revenues. Reports say that Deutsche Boerse would hold approximately 60% of the new company.

Cisco Misses On Margins. Cisco Systems (CSCO) reported earnings that beat expectations, but the company saw its earnings fall 18% in the quarter and revenue growth flattened. Gross margins fell to 62.4% from 64.3%.  CEO John Chambers said the lower Cisco's gross margins can from new product launches, and that margins should improve over time.

Downgrades

Cisco Systems (CSCO): Stifel Nicolaus lowered their rating from Buy to Hold.

Buffalo Wild Wings (BWLD): Miller Tabak lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Northrop Grumman (NOC): RBC Capital Markets reiterated their Underperform rating and raised their target price from $66 to $75.00.

Earning Reports

Laboratory Corp (LH): Reported Q4 EPS of $1.34 beating estimates by +$0.03 on revenue of $1.3 billion.

PepsiCo (PEP): Reported EPS of $1.05 beating estimates by +$0.01 on revenue of $18.16 billion.

TreeHouse Foods (THS): Reported EPS of $0.80 beating estimates by +$0.02.

Cisco Systems (CSCO): Reported FQ2 EPS of $0.37 beating estimates by +$0.02 on revenue of $10.4 billion, beating estimates by +$0.17 billion.

Akamai Technologies (AKAM): Reported Q4 EPS of $0.40 beating estimates by +$0.02 on revenue of $285 million in-line.

FLIR Systems (FLIR): Reported Q4 EPS of $0.43 missing estimates by -$0.01 on revenue of $434 billion beating estimates by +$10 million.

MetLife (MET): Reported Q4 EPS of $1.14 beating estimates by +$0.04 on revenue of $14.2 billion, beating estimates by +$0.7 billion.

·         Futures at 7:00: Dow -0.5%. S&P -0.6%. Nasdaq -0.9%. Crude -0.3% to $86.44. Gold -0.6% to $1357.90.

·         Europe: London -0.9%. Paris -0.9%. Frankfurt -0.4%.

·         Asia: Japan -0.1% to 10606. Hong Kong -2.0% to 22709. China +1.6% to 2819. India -0.7% to 17463.