The symptom of the problem looks like \"[0m[27m[24m[J[34;1\" which on a terminal translates into the color blue.
-A
The following should work in your .bash_profile or .bashrc
case $TERM in xterm-color) export PS1='\[\e]0;\W\007\]\[\e[34;1m\]\W\[\e[0m\]\$ ' ;; *) export PS1='\W\$ ' ;; esac