MORNING COFFEE

Apple To Discuss Cash Holdings. Apple (AAPL) will hold a conference call this morning to discuss what to do with its cash balance, which exceeds $100 billion. Many are speculating that a dividend and/or buyback may be announced. Pre-market: 600.31 +14.74 (2.52%)

UPS Buys TNT Express. UPS (UPS) and TNT Express (TNTE) have finally reached a deal were UPS will purchase the company for €5.16B ($6.8B), or €9.50 a share, up from an original bid of €9. The acquisition price is a 54% premium over TNT's prior close of €6.18. Pre-market: 79.60 +1.19 (1.52%)

Upgrades

Colgate-Palmolive (CL): CLSA raised their rating from Underperform to Outperform and placed a target price of $105.00 on the company. Pre-market: 95.20 +0.41 (0.43%)

Abbott Labs (ABT): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $58.00 to $70.00. Pre-market: 59.72 +0.30 (0.50%)

Ensco (ESV): JP Morgan raised their rating from Neutral to Overweight and raised their target price from $70.00 to $78.00. Pre-market: 58.29 +0.64 (1.11%)

Sony Corp (SNE): CLSA raised their rating from Underperform to Outperform. Pre-market: 21.55 -0.26 (-1.19%)

Gap Inc (GPS): BMO Capital raised their rating from Market Perform to Outperform and raised their target price from $24.00 to $34.00.

Downgrades

Sprint Nextel (S): Bernstein lowered their rating from Market Perform to Underperform and lowered their target price from $2.50 to $1.75. Pre-market: 2.76 -0.13 (-4.50%)

Coverage Initiated

YUM! Brands (YUM): Oppenheimer initiated coverage with an Outperform rating and target price of $82.00.

Pandora Media (P): Credit Suisse initiated coverage with a Neutral rating and target price of $12.00. Pre-market: 10.30 -0.02 (-0.19%)

Markets: 
Futures at 8:04: Dow -0.13%. S&P -0.13%. Nasdaq +0.22%. Crude +0.19% to $107.28. Gold -0.07% to $1654.50. 

Europe: London -0.01%. Paris -0.60%. Frankfurt -0.63%. 

Asia: Japan +0.12% to 10142. Hong Kong -0.95% to 21115. China +0.23% to 2410. India -1.10% to 17466.