MORNING COFFEE

BofA Finds Errors In Foreclosure Paperwork. Bank of America (BAC) has reported that they have found errors in the foreclosure paperwork it began examining last week. The bank said that the errors have been minor so far, including misspellings of borrowers' names and wrong addresses.  These errors were found while reviewing less than 1% of the foreclosure files.  Some are questioning what kind of other errors will be found in the remaining 99% of the banks foreclosure files.

Downgrades

J. Crew (JCG):  MKM Partners lowered their rating from Buy to Neutral and lowered their target price from $41.00 to $35.00.

Home Depot (HD): FBR Capital lowered their rating from Outperform to Market Perform.

Microsoft (MSFT): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $32.00 to $27.00.

Coverage Reiterated/Price Target Changed 

Verizon (VZ): RBC Capital Markets reiterated their Outperform rating and raised their target price from $33.00 to $35.00.

Novellus (NVLS): RBC Capital Markets reiterated their Top Pick rating and lowered their target price from $36.00 to $34.00.

Honeywell (HON): RBC Capital Markets reiterated their Sector Perform rating and raised their target price from $45.00 to $50.00.

Fossil (FOSL): Brean Murray reiterated their Buy rating and raised their target price from $54.00 to $64.00.

Earning Reports

Bank of Hawaii (BOH): Reported EPS of $0.91 beating estimates by +$0.12.

Boyd Gaming (BYD): Reported EPS of -$0.02 missing estimates by -$0.07.

RadioShack (RSH): Reported EPS of $0.37 beating estimates by +$0.02.

·         Futures: Dow +0.6%. S&P +0.7%. Nasdaq +0.55%. Crude +0.9% to $82.46. Gold +1.4% to $1344.20.

·         In Asia, Japan -0.3% to 9401. Hong Kong +0.5% to 23628. China+2.6% to 3051. India +0.7% to 20303.

·         In Europe: London +0.7%. Paris +0.5%. Frankfurt +0.7%.