MORNING COFFEE

Foreclosure Deal With Banks Near. After leaving the negotiation table for four months California has returned to the table.  Reports say that a $25 billion deal over foreclosure abuse by five banks is near complete.  New York which was another hold-out state, said it could support the deal. State Attorney Generals have until today to decide whether they will sign on to the deal. The banks involved are Ally Financial, Bank of America (BAC), Citigroup (C), JP Morgan (JPM), and Wells Fargo (WFC). BAC Pre-market: 7.77 -0.07 (-0.89%), C Pre-market: 33.21 -0.33 (-0.98%), JPM Pre-market: 37.99 -0.29 (-0.76%), WFC Pre-market: 30.50 -0.13 (-0.42%)

Upgrades

Corning (GLW): Piper Jeffray raised their rating from Neutral to Overweight and raised their target price from $13.00 to $16.00. Pre-market: 13.77 +0.19 (1.40%)

Downgrades

Forward Air (FWRD): BB&T lowered their rating from Buy to Hold.

Comerica (CMA): RBC Capital lowered their rating from Outperform to Sector Perform and lowered their target price from $35.00 to $30.00. Pre-market: 30.08 0.00 (0.00%)

Cracker Barrel Old Time Country Store (CBRL): KeyBanc lowered their rating from Buy to Hold. Pre-market: 54.37 -0.35 (-0.64%)

MGM Resorts International (MGM): Goldman Sachs lowered their rating from Buy to Neutral and maintained a target price of $14.50. Pre-market: 14.00 -0.37 (-2.57%)

Royal Dutch Shell (RDS.A): Credit Suisse lowered their rating from Outperform to Neutral. Pre-market: 71.47 -1.01 (-1.39%)

Coverage Reiterated/Price Target Changed 

MasterCard (MA): FBR Capital reiterated their Outperform rating and raised their target price from $400.00 to $430.00. Pre-market: 389.97 -0.35 (-0.09%)

Panera Bread (PNRA): Oppenheimer reiterated their Outperform rating and raised their target price from $150.00 to $175.00.

Earning Reports

Hasbro (HAS): Reported EPS of $10.6 beating estimates by +$0.01. Pre-market: 35.00 -0.86 (-2.40%)

Humana (HUM): Reported EPS of $1.20 in-line with estimates. Pre-market: 87.00 -3.12 (-3.46%)

Markets: 
Futures at 7:46: Dow -0.26%. S&P -0.29%. Nasdaq -0.27%. Crude -0.97% to $96.88. Gold -1.14% to $1722.20. 

Europe: London -0.15%. Paris -0.75%. Frankfurt -0.20%. 

Asia: Japan +1.10% to 8929.2. Hong Kong -0.23% to 20710. China +0.03% at 2331. India +0.6% to 17707.