MORNING COFFEE

DOJ May Sue Apple. Reports say that the Department of Justice may sue Apple (AAPL) and Macmillan today over the alleged fixing of e-book prices. Pre-market: 635.68 +7.24 (1.15%)

Fannie and Freddie Could Save $1.7 Billion. Fannie Mae (FNMA) and Freddie Mac (FMCC) could save $1.7 billion by reducing the principal balance on some problem loans.  The move which some are calling an election year political move could help millions of struggling homeowners.  The funding of the program could come from Treasury incentives via the expanded Home Affordable Modification Program and using TARP funds.

Upgrades

Silicon Labs (SLAB): Wunderlich raised their rating from Hold to Buy and raised their target price from $44.00 to $50.00.

MetLife (MET): Raymond James raised their rating from Market Perform to Outperform and placed a target price of $42.00 on the company. Pre-market: 35.46 +0.60 (1.72%)

Bank of America (BAC): Guggenheim raised their rating from Neutral to Buy and placed a target price of $11.00 on the company. Pre-market: 8.75 +0.21 (2.46%)

Downgrades

General Dynamics (GD): Lazard Capital lowered their rating from Buy to Neutral. Pre-market: 69.10 -0.38 (-0.55%)

GameStop (GME): Needham lowered their rating from Buy to Hold.

Coverage Initiated

Yelp (YELP): Oppenheimer initiated coverage with a Perform rating and placed a target price of $23.00 on the company. Pre-market: 25.70 -0.11 (-0.43%)

Sealed Air (SEE): KeyBanc Capital Markets initiated coverage with a Hold rating.

Ball Corp (BLL): KeyBanc Capital Markets initiated coverage with a Hold rating.

Earning Reports

Alcoa (AA): Reported EPS of $0.10 beating estimates by +$0.13. Pre-market: 9.80 +0.48 (5.15%)

Progressive (PGR): Reported EPS of $0.42 beating estimates by +$0.03. Pre-market: 22.77 +0.02 (0.09%)

Markets: 
Futures at 8:17: Dow +0.60%. S&P +0.83%. Nasdaq +0.68%. Crude +0.37% to $101.38. Gold -0.15% to $1658.30. 

Europe: London +0.69%. Paris +1.53%. Frankfurt +1.46%. 

Asia: Japan -0.83% to 9459. Hong Kong -1.06% to 20141. China +0.13% to 2309. India -0.26% to 17199.