MORNING COFFEE

Apple to Announce iPhone 5. Yesterday Apple announced an event on Oct. 4 called "Let's talk iPhone" which many are expecting to be the official launch of the highly anticipated iPhone 5.  The new phone is expected to have a bigger touch screen, a 8-megapixel camera, voice-control features and will be compatible with iCloud.  The new phone will have heavy competition from the recent Android phone releases. Pre-market: 400.65 +1.39 (0.35%)

Downgrades

Colgate-Palmolive (CL): Citigroup lowered their rating from Buy to Hold and lowered their target price from $95.00 to $93.00.

Coverage Initiated

Apple (AAPL): Janney Capital initiated coverage with a Buy rating and target price of $495.00. Pre-market: 400.65 +1.39 (0.35%)

Aflac (AFL): RBC Capital initiated coverage with an Outperform rating and target price of $50.00.

DIRECTV (DTV): JP Morgan initiated coverage with an Overweight rating and target price of $53.00.

Comcast Corp CL A (CMCSA): JP Morgan initiated coverage with an Overweight rating and target price of $30.00. Pre-market: 22.40 +0.07 (0.31%)

Cisco Systems (CSCO): FBN Securities initiated coverage with an Outperform rating and target price of $23.00. Pre-market: 16.17 +0.10 (0.62%)

Huntington Ingalls (HII): Goldman Sachs initiated coverage with a Sell rating and target price of $21.00.

Quest Diagnostics (DGX): Natixis initiated coverage with a Buy rating and target price of $59.00.

Teva Pharmaceuticals (TEVA): Canaccord initiated coverage with a Buy rating and target price of $52.00. Pre-market: 36.95 +0.67 (1.85%)

Coverage Reiterated/Price Target Changed

Laboratory Corp (LH): Deutsche Bank reiterated their Buy rating and lowered their target price from $107.00 to $95.00.

Earning Reports

Darden Restaurants (DRI): Reported EPS of $0.78 in line with estimates. Pre-market: 47.00 +0.02 (0.04%)

Family Dollar (FDO): Reported EPS of $0.66 beating estimates by +$0.02. Pre-market: 53.80 -0.38 

(-0.70%)

McCormick (MKC): Reported EPS of $0.69 beating estimates by +$0.03.

Accenture (ACN): Reported EPS of $0.91 beating estimates by +$0.02. Pre-market: 55.30 +1.65 (3.08%)

Paychex (PAYX): Reported EPS of $0.41 beating estimates by +$0.03. Pre-market: 27.01 +0.32 (1.20%)

Markets
Futures at 8:52: Dow +0.31%. S&P +0.30%. Nasdaq +0.22%. Crude -1.16% to $83.45. Gold -0.34% to $1646.40.

Europe: London -0.56%. Paris -0.46%. Frankfurt 0.0%.

Asia: Japan +0.07%. Hong Kong -0.66%. China -0.95%. India -0.47%.