MORNING COFFEE

Foreclosures Cost Banks $72 Billion. The combined costs of problem mortgages and foreclosure abuse at five banks exceed a combined $72 billion according to Bloomberg analysis. BofA (BAC) took the largest hit at $41.8 billion. The other banks taking a majority of the hits included Ally Financial, Citigroup (C), JPMorgan (JPM), and Wells Fargo (WFC).

Upgrades

Yum! Bands (YUM): Goldman Sachs raised their rating from Sell to Neutral and raised their target price from $53.00 to $66.00.

Downgrades

Morgan Stanley (MS): Collins Stewart lowered their rating from Buy to Hold and placed a target price of $23.00 on the company. Pre-market: 65.38 +0.53 (0.82%)

Owens Corning (OC): Citigroup lowered their rating from Buy to Neutral and placed a target price of $38.00 on the company.

UBS (UBS): Deutsche Bank lowered their rating from Hold to Sell. Pre-market: 14.43 +0.16 (1.12%)

ING Group (ING): Goldmans Sachs lowered their rating from Buy to Neutral. Pre-market: 9.82 +0.08 (0.82%)

BP (BP): Societe Generale lowered their rating from Buy to Hold. Pre-market: 46.41 -0.19 (-0.41%)

Buffalo Wild Wings (BWLD): Raymond James lowered their rating from Outperform to Market Perform. Pre-market: 80.60 +10.41 (14.83%)

Coverage Initiated

Peet's Coffee (PEET): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $80.00.

J.M. Smucker (SJM): KeyBanc Capital Markets initiated coverage with a Buy rating and target price of $95.00.

Earning Reports

Walt Disney (DIS): Reported EPS of $0.80 beating estimates by +$0.09. Pre-market: 40.88 -0.10 (-0.24%)

CVS Caremark (CVS): Reported EPS of $0.89 in-line with estimates. Pre-market: 43.56 +0.48 (1.11%)

Cognizant Tech (CTSH): Reported EPS of $0.78 beating estimates by +$0.01. Pre-market: 70.30 -1.71 (-2.37%)

Elan (ELN): Reported EPS of -$0.23 missing estimates by -$0.25. Pre-market: 13.40 -0.27 (-1.98%)

Ingersoll-Rand (IR): Reported EPS of $0.76 beating estimates by +$0.09. Pre-market: 37.83 +0.27 (0.72%)

Level 3 (LVLT): Reported EPS of -$0.80 beating estimates by +$0.10. Pre-market: 20.10 +0.51 (2.60%)

Polo Ralph Lauren (RL): Reported EPS of $1.78 beating estimates by +$0.12. Pre-market: 170.02 +12.95 (8.24%)

Reynolds American (RAI): Reported EPS of $0.72 beating estimates by +$0.04.

Markets: 
Futures at 8:01: Dow +0.16%. S&P +0.13%. Nasdaq +0.19%. Crude +1.20% to $99.58. Gold -0.08% at $1747.00. 

Europe: London +0.08%. Paris +0.55%. Frankfurt +0.71%. 

Asia: Japan +1.10% to 9016. Hong Kong +1.54% to 21018. China +2.43% to 2348. India +0.48% to 17707.