MORNING COFFEE

Bank of America Receives Largest FTC Fine Ever. Bank of America’s (BAC) Countrywide division will pay a $108 million, the largest FTC fine ever, on charges it cheated homeowners by using inflated fees. The funds will be used to reimburse more than 200,000 customers who were overcharged on their loans by Countrywide. In a statement FTC Chairman Jon Leibowitz said "Life is hard enough for homeowners who are having trouble paying their mortgage." “To have a major loan servicer like Countrywide piling on illegal and excessive fees is indefensible."

Apple Unveils iPhone 4. Apple (AAPL) unveiled its new iPhone yesterday that has a 24% thinner design and 100 new features, including video chat with a front-facing camera.  The iPhone 4 goes on sale June 24 for $199.

Upgrades

Bed Bath & Beyond (BBBY): FBR Capital raised their rating from Underperform to Market Perform.

SunTrust Banks (STI): Stifel Nicolaus raised their rating from Sell to Hold.

Downgrades

Baker Hughes (BHI): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $61.00 to $47.00.

Diamond Offshore (DO): FBR Capital lowered their rating from Market Perform to Underperform and lowered their target price from $61.00 to $47.00.

Coverage Initiated

Cree (CREE): Wunderlich initiated coverage with a Buy rating and target price of $85.00.

Spectrum Brands (SPB): BWS Financial initiated coverage with a Buy rating and target price of $38.00.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Caris & Company reiterated their Buy rating and changed their target price from $310.00 to $325.00.

Netflix (NFLX): Caris & Company reiterated their Above Average rating and changed their target price from $120.00 to $130.00.

·         Futures: Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude -0.5% to $71.09. Gold +0.7% to $1249.80.

·         Asia: Japan +0.2% to 9538. Hong Kong +0.6% to 19487. China +0.1% to 2514. India -1.0% to 16617.

·         Europe: London -0.8%. Paris -1.2%. Frankfurt -0.8%.