MORNING COFFEE

Nintendo To Replace Wii.  Nintendo (NTDOY) said this morning that the will be releasing a new system to replace the very popular Wii gaming system some time in 2012.  The game maker plans to "show a playable model of the new system" at the E3 Expo in Los Angeles from June 7 to 9. And said it would release more information about the new game system at that time.  Nintendo said it has sold more than 86 million units of the Wii, a system since its launch in 2006.

Upgrades

Brocade (BRCD): Robert W. Baird raised their rating from Neutral to Outperform and placed a target price of $8.00 on the company.

Marriott (MAR): FBR Capital raised their rating from Market Perform to Outperform and placed a target price of $43.00 on the company.

Legg Mason (LM): Ticonderoga raised their rating from Sell to Neutral.

SunTrust Banks (STI): Oppenheimer raised their rating from Underperform to Perform.

Downgrades

BB&T Corp (BBT): Oppenheimer lowered their rating from Outperform to Perform.

Coverage Reiterated/Price Target Changed

ITT Educational (ESI): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $76.00 to $80.00.

Honeywell (HON): RBC Capital Markets reiterated their Outperform rating and raised their target price from $66.00 to $69.00.

Laboratory Corp (LH): Avondale reiterated their Market Perform rating and raised their target price from $85.00 to $105.00.

Marathon Oil (MRO): Howard Weil reiterated their Market Perform rating and raised their target price from $60.00 to $68.00.

YUM! Brands (YUM): RBC Capital Markets reiterated their Outperform rating and raised their target price from $56.00 to $59.00.

Travelers (TRV): RBC Capital Markets reiterated their Outperform rating and raised their target price from $62.00 to $67.00.

SunTrust Banks (STI): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $36.00 to $33.00.

Newmont Mining (NEM): RBC Capital Markets reiterated their Underperform rating and lowered their target price from $62.00 to $67.00.

Earning Reports

Johnson Controls (JCI): Reported FQ2 EPS of $0.56 beating estimates by +$0.01 on revenue of $10.14 billion, beating estimates by +$1.07 billion. Pre-market: 40.25 -0.48 (-1.18%)

Kimberly-Clark (KMB): Reported Q1 EPS of $1.09 missing estimates by -$0.08 on revenue of $5.02 billion, beating estimates by +$0.04 billion. Pre-market: 64.50 -1.55 (-2.35%)

·         Futures at 7:00: Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude +0.3% to $112.65. Gold +0.9% to $1517.20.

·         Europe, London closed, Paris closed, Frankfurt closed.

·         Asia, Japan -0.1% to 9672. Hong Kong closed. China -1.5% to 2965.