Everton 3 Liverpool 0: England striker Andrew Johnson scored twice and Australian Tim Cahill notched one as Everton handed local rivals Liverpool a 3-0 Merseyside derby mauling at Goodison Park.
Midfielder Cahill struck from close range after 24 minutes and Johnson fired home a second 11 minutes later after a defensive blunder from Jamie Carragher.
Liverpool, who left Wales forward Craig Bellamy out of the squad, twice struck the post through captain Steven Gerrard before Johnson completed the rout with a comical third in stoppage time.
Keeper Jose Reina palmed Lee Carsley's shot up in the air, then backtracking caught the ball under the crossbar. With his momentum about to carry him over the line, Reina released the ball, allowing Johnson to head home his fourth goal in as many games since joining from Crystal Palace.
Victory lifted unbeaten Everton, with 10 points from four games, to the top of the standings. Manchester United, on nine points, were hosting Tottenham Hotspur at Old Trafford in a late kick off (1615).
Defeat ended Liverpool's run of 11 league games unbeaten stretching back to last season, when they also did the double over Everton.
"It feels as good as I'm sure any other victory Everton manager has had in a Merseyside derby in the past," Everton's David Moyes told Sky Sports.
"We've not won many in the past, Liverpool have a terrific team, some fabulous players but I have to give great credit to my players."
Moyes was full of praise for close-season capture Johnson, who has made an immediate impact.
"We've always said he will score goals. For me his second, goal... to gamble and get in and score it was terrific. That's why we are pleased to have him."
Everton, harrying Liverpool at every opportunity, went ahead against the run of play. Mikel Arteta's dinked cross was flicked on by Lee Carsley, defender Steve Finnan appeared to be bundled over by Leon Osman as he went to clear, allowing Cahill to turn the ball home.
Liverpool responded with a curling shot by Luis Garcia which Tim Howard turned away, with Gerrard sliding in to put the rebound against the post from an acute angle.
The hosts lifted the roof 10 minutes before halftime with a second goal which owed much to shambolic Liverpool defending. Carragher made a hash of attempting to clear and Johnson seized on his mistake to run through and sidefoot past Reina.
Liverpool coach Rafael Benitez introduced Dutch striker Dirk Kuyt for the ineffective Peter Crouch early after the break and he made an immediate impact, his run and cutback down the left wasted by Xabi Alonso.
Finnan fizzed a dipping shot a metre wide as Liverpool pressed and Gerrard struck the left-hand post after running on to Sami Hyypia's incisive pass. The away side were then denied a strong penalty shout when Tony Hibbert appeared to handle Kuyt's follow up.
"It's a bad day, we made a lot of mistakes," said a downcast Benitez. "Too many mistakes in football and you normally pay for them."
