MORNING COFFEE

Bank of America to Issue Shares. After denying for months that the bank would not issue any new shares, Bank of America (BAC) has changes its mind. Yesterday the bank said it may swap preferred securities for $6 billion in common stock and debt. BofA would issue up to 400 million common shares and $3 billion of senior notes. The move would save money on interest payments on the preferred shares. Pre-market: 6.76 -0.15 (-2.17%)

Upgrades

Stanley Black & Decker (SWK): Argus raised their rating from Hold to Buy and placed a target price of $76.00 on the company. Pre-market: 66.06 -0.25 (-0.38%)

Downgrades

Sara Lee (SLE): DA Davidson lowered their rating from Neutral to Underperform.

Fluor (FLR): Johnson Rice lowered their rating from Overweight to Equal Weight. Pre-market: 55.10 -3.50 (-5.97%)

Transocean Ltd. (RIG): Stephens lowered their rating from Overweight to Equal Weight and lowered their target price from $75.00 to $60.00. Pre-market: 48.41 -0.59 (-1.20%)

Transocean Ltd. (RIG): Morgan Keegan lowered their rating from Outperform to Market Perform and lowered their target price from $75.00 to $60.00. Pre-market: 48.41 -0.59 (-1.20%)

Transocean Ltd. (RIG): Macquarie lowered their rating from Neutral to Underperform. Pre-market: 48.41 -0.59 (-1.20%)

Kellogg (K): Stifel Nicolaus lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Apple (AAPL): Canaccord Genuity reiterated their Buy rating and raised their target price from $545.00 to $560.00. Pre-market: 402.36 -0.71 (-0.18%)

Hansen Natural (HANS): Stifel Nicolaus reiterated their Buy rating and raised their target price from $91.00 to $95.00. Pre-market: 89.17 -0.96 (-1.07%)

Earning Reports

CBOE Holdings (CBOE): Reported EPS of $0.50 beating estimates by +$0.05. Pre-market: 25.78 -0.11 (-0.42%)

Fluor (FLR): Reported EPS of $0.78 missing estimates by -$0.07. Pre-market: 55.10 -3.50 (-5.97%)

Microchip Tech (MHCP): Reported EPS of $0.46 in-line with estimates. Pre-market: 36.84 +1.07 (2.99%)

Starbucks (SBUX): Reported EPS of $0.37 beating estimates by +$0.01.

Markets: 
Futures at 7:00: Dow -0.1%. S&P -0.2%. Nasdaq -0.3%. Crude +0.7% to $94.76. Gold -0.3% to $1760.10. 

Europe: London +0.7%. Paris -0.1%. Frankfurt -0.3%. 

Asia: Japan +1.9% to 8801.4. Hong Kong +3.1% to 19843. China +0.8% to 2528. India +0.5% to 17563.