MORNING COFFEE

Italian Government in Turmoil. Reports say that Italian Prime Minister Silvio Berlusconi is meeting with his family members to discuss the possibility of stepping down.  Prime Minister Berlusconi has been losing support ahead of a key budget vote tomorrow.  Additionally, the Italian 10-year bond yield hit another new record high of 6.6% today.  This concerns many analysts, since the rate has been climbing closer to the 7% rate were other Eurozone nations sought a bailout.

Berkshire Hathaway Investment Hits Recent High. Warren Buffett Berkshire Hathaway’s (BRK.B) CEO invested $23.9 billion in Q3 2011, more than any quarter in the last 15 years. The company has not yet filed its quarterly reports with the SEC, but some are saying that the investments were outside of its normal investments in the consumer products and banking sectors. Pre-market: 77.10 -0.14 (-0.18%)

Upgrades

CVS Caremark (CVS): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $36.00 to $44.00. Pre-market: 38.31 +0.29 (0.76%)

Flour Corp (FLR): Lazard Capital raised their rating from Neutral to Buy and placed a target price of $68.00 on the company. Pre-market: 55.10 +0.24 (0.44%)

Home Depot (HD): RBC Capital raised their rating from Sector Perform to Outperform and raised their target price from $38.00 to $42.00. Pre-market: 36.55 +0.16 (0.44%)

Coverage Initiated

Groupon (GRPN): The Benchmark Company initiated coverage with a Buy rating and target price of $32.00. Pre-market: 26.78 +0.67 (2.57%)

Groupon (GRPN): Susquehanna initiated coverage with a Neutral. Pre-market: 26.78 +0.67 (2.57%)

Archer-Daniels (ADM): Ticonderoga initiated coverage with a Neutral rating.

SunPower (SPWRA): Auriga lowered their rating from Hold to Sell.

Kellogg (K): William Blair lowered their rating from Outperform to Market Perform. Pre-market: 49.61 -0.30 (-0.60%)

Earning Reports

Dish Network (DISH): Reported EPS of $0.71 missing estimates by -$0.01. Pre-market: 22.70 -0.78 (-3.32%)

Echostar Holdings (SATS): Reported EPS of -$0.22 missing estimates by -$0.61.

Markets: 
Futures at 8:35: Dow -0.50%. S&P -0.51%. Nasdaq -0.43%. Crude +0.04% to $94.30. Gold +1.20% to $1770.10. 

Europe: London -0.48%. Paris -2.73%. Frankfurt -0.43%. 

Asia: Japan -0.39% to 8767. Hong Kong -0.83% to 19677. China -0.73% to 2509. India +0.46% to 17562.