MORNING COFFEE

Bank of America to Charge for Debit Card Use. Bank of America (BAC) which has been struggling with their mortgage business and lawsuits is looking to increase revenues on the backs of consumers.  The bank announced that it will soon charge customers a new $5 fee per month if they use a BofA debit card to make a purchase. The bank, is blaming the new fee on lost revenue due to the new Dodd-Frank regulations. Year to date Bank of America shares have fallen -52.4%. Pre-market: 6.24 -0.11 (-1.73%)

Morgan Stanly Credit-Defult Swaps Soar. Fears about the EU debt crisis and French bank exposure have spread to the U.S. The fear of U.S. bank exposure has caused credit-default swaps to insure Morgan Stanley's (MS) debt to soar to 456bp.  This is higher than the cost of buying swaps for some major French and Italian banks and is the highest level since March 2009. Pre-market: 14.68 -0.41 (-2.72%)

Upgrades

Marathon Oil (MRO): The Benchmark Company raised their rating from Sell to Hold and placed a target price of $23.00 on the company. Pre-market: 22.10 -0.22 (-0.99%)

Edison (EIX): Wunderlich raised their rating from Hold to Buy and placed a target price of $23.00 on the company. Pre-market: 38.30 +0.04 (0.10%)

Downgrades

Altera (ALTR): Auriga lowered their rating from Buy to Hold and lowered their target price from $42.00 to $37.00.

Coverage Initiated

Dunkin” Brands (DNKN): Argus initiated coverage with a Hold rating.

H.J. Heinz (HNZ): Jefferies initiated coverage with a Buy rating and target price of $59.00 on the company.

Dow Chemical (DOW): Jefferies initiated coverage with a Hold rating and target price of $27.00 on the company. Pre-market: 23.45 -0.29 (-1.22%)

United States Steel (X): Longbow initiated coverage with a Buy rating and target price of $37.00 on the company. Pre-market: 22.61 -0.46 (-1.99%)

Earning Reports

Micron (MU): Reported EPS of -$0.14 missing estimates by -$0.14. Pre-market: 5.45 -0.42 (-7.16%)

Markets
Futures at 8:24: Dow -0.91%.S&P -0.98%. Nasdaq -0.84%. Crude -0.80% to $81.48. Gold +0.30% to $1622.10.

Europe: London -1.50%. Paris -2.04%. Frankfurt -2.52%.

Asia: Japan -0.01%. Hong Kong -2.32%. China -0.26%. India -1.46%.