MORNING COFFEE

Google Blows Away Earnings. After Thursdays close Google (GOOG) blew away their earnings expectations.  The company reported Q3 2011 EPS of $9.72, a jump of 27%. Estimates were for the company to report EPS of only $8.77.  Sales at the company surged 33% to $9.7 billion. The company continues to focus on its Mobile business.  The company recently announced plans to purchase Motorola Mobility Holdings (MMI) for $12.5 billion and the deal is expected to close this year or early 2012.   Google's mobile business jumped to more than $2.5 billion, up from only $1 billion just a year ago. Google's Android mobile software, is the world's number one smartphone operating system powering over 190 million devices, up from just 135 million in mid-July.  GOOG Pre-market: 599.25 +40.26 (7.20%)

Downgrades

Boeing (BA): Oppenheimer lowered their rating from Outperform to Perform. Pre-market: 63.65 +0.12 (0.19%)

Monsanto (MON): Ticonderoga lowered their rating from Buy to Neutral. Pre-market: 73.18 0.00 (0.00%)

Ecolab (ECL): Citigroup lowered their rating from Buy to Neutral and maintained their target price of $58.00 on the company. After Hours: 52.64 0.00 (0.00%)

Gap (GPS): Wells Fargo lowered their rating from Outperform to Market Perform and placed a target range of $17.00 to $19.00 on the company.

Coverage Initiated

Apple (AAPL): ISI Group initiated coverage with a Buy rating and target price of $500.00. Pre-market: 415.50 +7.07 (1.73%)

Cisco Systems (CSCO): ISI Group initiated coverage with a Buy rating and target price of $20.00. Pre-market: 17.47 +0.05 (0.29%)

IBM (IBM): Macquarie initiated coverage with an Outperform rating and target price of $210.00. Pre-market: 187.30 +0.48 (0.26%)

Coverage Reiterated/Price Target Changed

Lockheed Martin (LMT): HSBC Securities reiterated their Neutral rating and lowered their target price from $85.00 to $82.00. After Hours: 76.41 0.00 (0.00%)

Research In Motion (RIMM): Wunderlich reiterated their Hold rating and lowered their target price from $31.00 to $24.00. Pre-market: 23.77 +0.16 (0.68%)

Earning Reports

Google (GOOG): Reported EPS of $9.72 beating estimates by +$0.95. Pre-market: 599.25 +40.26 (7.20%)

JB Hunt Trans (JBHT): Reported EPS of $0.57 beating estimates by +$0.01. After Hours: 41.33 +2.44 (6.27%)

Mattel (MAT): Reported EPS of $0.86 beating estimates by +$0.01. Pre-market: 27.60 -0.18 (-0.65%)

Markets: 
Futures at 7:28: Dow +0.72%. S&P +0.77%. Nasdaq +0.66%. Crude +1.54% to $86.55. Gold +0.47% to $1676.40. 

Europe: London +0.87%. Paris +0.79%. Frankfurt +0.62%. 

Asia: Japan -0.85% to 8747. Hong Kong -1.36% to 18501. China -0.30% to 2431. India +1.18% to 17082.