MORNING COFFEE

Express Scripts to Buy Medco. Express Scripts (ESRX) has agreed to buy Medco Health Solutions (MHS) for $71.36 per share a 28% premium to yesterday’s closing price.  The $29.1 billion deal will combine two of the largest managers of prescription drug benefits in the U.S. ESRX Pre-market: 56.15 +3.61 (6.87%) MHS Pre-market: 66.75 +10.97 (19.67%)

Upgrades

Williams-Sonoma (WSM): Wedbush raised their rating from Neutral to Outperform. Pre-market: 38.81 +0.67 (1.76%)

Downgrades

Taubman Centers (TCO): ISI Group lowered their rating from Buy to Hold.

Intel (INTC): Nomura lowered their rating from Buy to Hold and lowered their target price from $23.00 to $18.00. Pre-market: 22.55 -0.44 (-1.91%)

Clorox (CLX): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $73.00 to $72.00.

Yingli Green (YGE): Deutsche Bank lowered their rating from Buy to Hold and lowered their target price from $14.80 to $7.70. Pre-market: 7.26 -0.08 (-1.09%)

Coverage Reiterated/Price Target Changed

E*TRADE (ETFC): FBR Capital reiterated their Outperform rating and raised their target price from $17.00 to $18.00. Pre-market: 14.70 -0.02 (-0.14%)

American Express (AXP): FBR Capital reiterated their Market Perform rating and raised their target price from $50.00 to $60.00. Pre-market: 52.12 +0.03 (0.06%)

eBay (EBAY): The Benchmark Company reiterated their Hold rating and raised their target price from $30.00 to $38.00. Pre-market: 33.00 -0.17 (-0.51%)

Earning Reports

AT&T (T): Reported EPS of $0.60 in-line with estimates. Pre-market: 30.18 -0.05 (-0.17%)

Autoliv (ALV): Reported EPS of $1.54 beating estimates by +$0.19. Pre-market: 70.60 +0.80 (1.15%)

Freeport-McMoRan (FCX): Reported EPS of $1.43 beating estimates by +$0.07. Pre-market: 56.28 +0.36 (0.64%)

ITT Educational (ESI): Reported EPS of $2.85 beating estimates by +$0.21. Pre-market: 89.40 -3.19 (-3.45%)

Laboratory Corp (LH): Reported EPS of $1.64 beating estimates by +$0.11.

PepsiCo (PEP): Reported EPS of $1.21 beating estimates by +$0.01. Pre-market: 67.20 -1.29 (-1.88%)

·         Futures at 8:28: Dow +0.47%. S&P +0.52%. Nasdaq +0.23%. Crude 0.00% to $98.40. Gold +0.10% to $1598.50.

·         Europe: London +0.44%. Paris +1.27%. Frankfurt +0.75%.

·         Asia: Japan +0.04% at 10010. Hong Kong -0.07% to 21987. China -1.01% to 2766. India -0.36% to 18436.