MORNING COFFEE

Here Comes The Lawsuits.  Reports say that AIG (AIG) may file a lawsuit against Goldman Sachs (GS) over $ 2 billion in losses it suffered on insurance deals tied to mortgage-backed securities. This may just be the first of a wave of lawsuits filed.   According to a Credit Suisse report, Bank of America/Merrill Lynch (BAC) leads the "CDO litigation risk" list, since the bank offered $16.85 billion of CDOs similar to the ones Goldman is charged with fraud for.

GM to Repay Loans. General Motors (GMGMQ) plans to announce today that it will repay the remaining $4.7 billion in government loans ahead of schedule.

Upgrades

Potash (POT):  Soleil Sell raised their rating from sell to Hold and placed a target price of $100.00 on the company.

Microchip (MCHP): UBS raised their rating from Neutral to Buy.

Total S.A. (TOT): Citigroup raised their rating from Hold to Buy.

Coverage Initiated

Unilever PLC (UL):  Citigroup initiated coverage with a Buy rating.

UnitedHealth (UNH): Wedbush initiated coverage with a Neutral rating and target price of $35.00

RR Donnelley & Sons (RRD): Robert W. Baird initiated coverage with an Outperform rating and target price of $27.00.

Coach (COH): Reported FQ3 EPS of $0.50 beating estimates by +$0.04 on revenue of $831 million. 

Goldman Sachs (GS): Reported FQ1 EPS of $5.59 beating estimates by +$1.58 on revenue of $12.8 billion.

Harley-Davidson (HOG): Reported FQ1 EPS of $0.29 beating estimates by +$0.07 on revenue of $1 billion.

UnitedHealth (UNH): Reported FQ1 EPS of $1.03 beating estimates by +$0.34 on revenue of $23.2 billion. The company also sees 2010 EPS of $3.15-3.35, up from prior guidance of $2.90-3.10.

·         Futures: Dow +0.3%. S&P +0.4%. Nasdaq +0.1%. Crude +1.5% to $82.67. Gold +0.6% to $1142.90.

·         Asia: Nikkei -0.1% to 10901. Hang Seng +1.0% to 21623. Shanghai flat at 2980. BSE +0.3% to 17461.

·         Europe: London +0.8% to 5775. Paris +1.2% to 4018. Frankfurt +1.3% to 6242.