MORNING COFFEE

Bank of American Post Large Loss. Bank of America (BAC) reported a loss of $9.1billion for Q2 due to an $8.5 billion settlement with investors for selling poor-quality mortgage backed bonds. Losses at the bank were -$0.90 per share, excluding charges related to the settlement the bank earned $3.7 billion, or +$0.33 per share. Additionally, both the AP and Reuters reported that despite major banks facing billions of dollars in penalties for faulty foreclosures, banks are continuing to use “robo-signing”. “Robo-signing” is an illegal practice of filing documents that appear to have been fabricated or altered by the banks while foreclosing on homeowners. Pre-market: 9.69 -0.03 (-0.31%)

Coverage Initiated

Kellogg (K): Ticonderoga initiated coverage with a Neutral rating. Pre-market: 55.00 +0.03 (0.05%)

Xilinx (XLNX): Jefferies initiated coverage with a Hold rating and target price of $7.50.

Microchip Tech (MCHP): Jefferies initiated coverage with a Buy rating and target price of $40.00. Pre-market: 32.35 +0.38 (1.19%)

Ford (F): RBC Capital initiated coverage with an Outperform rating and target price of $19.00. Pre-market: 13.02 +0.12 (0.93%)

Caterpillar (CAT): William Blair initiated coverage with an Outperform rating and placed a target price of $135.00 on the company. Pre-market: 108.93 +1.13 (1.05%)

Joy Global (JOYG): William Blair initiated coverage with a Market Perform rating and placed a target price of $99.00 on the company. Pre-market: 97.07 +0.40 (0.41%)

Deere (DE): William Blair initiated coverage with a Market Perform rating and placed a target price of $86.00 on the company. Pre-market: 80.50 +0.70 (0.88%)

Intel (INTC): Wedbush initiated coverage with a Neutral rating and target price of $25.00. Pre-market: 22.39 +0.11 (0.49%)

Coverage Reiterated/Price Target Changed

Halliburton (HAL): FBR Capital reiterated their Outperform rating and raised their target price from $72.00 to $80.00. Pre-market: 53.65 +0.53 (1.00%)

Halliburton (HAL): Wunderlich reiterated their Buy rating and raised their target price from $65.00 to $75.00. Pre-market: 53.65 +0.53 (1.00%)

Earning Reports

Harley-Davidson (HOG): Reported Q2 EPS of $0.81 beating estimates by +$0.10 on revenue of $1.34 billion.  The company also raised their FY'11 motorcycle shipment guidance to 228K-235K. Pre-market: 44.12 +2.71 (6.54%) 

UnitedHealth (UNH): Reported Q2 EPS of $1.16 beating estimates by +$0.18 on revenue of $25.2 billion. The company also gave FY'11 EPS guidance of $4.15-4.25 on revenue $101 billion. Pre-market: 51.54 -0.41 (-0.79%) 

Bank of America (BAC): Reported Q2 EPS of $0.33 beating estimates by +$0.03 on revenue of $13.48 billion. Pre-market: 9.69 -0.03 (-0.31%) 

Comerica (CMA): Reported Q2 EPS of $0.53 in-line with estimates. Pre-market: 31.81 -0.50 (-1.55%)

IBM (IBM): Reported Q2 EPS of $3.09 beating estimates by +$0.07 on revenue of $26.67 billion. Pre-market: 178.08 +2.80 (1.60%)

Stanley Works (SWK): Reported Q2 EPS of $1.46 beating estimates by +$0.20 on revenue of $2.6 billion. Pre-market: 68.51 -0.10 (-0.15%) 

·                     Futures at 8:00: Dow +0.54%. S&P +0.56%. Nasdaq +0.72%. Crude +1.16% to $97.05. Gold -0.06% to $1601.40.

·                     Europe: London +0.40%. Paris +1.11%. Frankfurt +1.17%.

·                     Asia: Japan -0.85% to 9890. Hong Kong +0.45% to 21902. China -0.70% to 2798. India +0.79% to 18654.