MORNING COFFEE

More Problems for BofA.  Bank of America's (BAC) mortgage liability problems are continuing after New York Attorney General Eric Schneiderman asked a judge to reject the bank's proposed $8.5 billion settlement with investors who bought the banks toxic loans.  There are a growing number of investors that are questioning the proposed settlement saying that it does not come near to covering the losses suffered.  The bank also said yesterday that it may face further claims from Fannie Mae and Freddie Mac.

Upgrades

Coinstar (CSTR): JP Morgan raised their rating from Neutral to Overweight and placed a target price of $46.50 on the company.

Transocean (RIG): Global Hunter raised their rating from Neutral to Accumulate and placed a target price of $63.00 on the company.

JB Hunt (JBHT):  Stifel Nicolaus raised their rating from Hold to Buy.

Canadian Natl Railway (CNI): Stifel Nicolaus raised their rating from Hold to Buy.

Downgrades

Bank of America (BAC): Wells Fargo lowered their rating from Outperform to Market Perform and lowered their target range from $14-$15 to $10-$12.

Earning Reports

Blue Nile (NILE): Reported EPS of $0.19 missing estimates by -$0.01.

Dolby Labs (DLB): Reported EPS of $0.65 beating estimates by +$0.08.

Fluor (FLR): Reported EPS of $0.94 beating estimates by +$0.13.

Hansen Natural (HANS): Reported EPS of $0.90 beating estimates by +$0.05.

Kaman (KAMN): Reported EPS of $0.50 beating estimates by +$0.05.

Markets:

Futures at 7:00: Dow -0.3%. S&P -0.1%. Nasdaq -0.3%. Crude -1% to $85.79. Gold +0.5% to $1667.10. 

Europe: London -2.2%. Paris -0.1%. Frankfurt -1.6%. 

Asia: Japan -3.7% to 9300. Hong Kong -4.3% to 20946. China -2.1% to 2626. India -2.2% to 17306.