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Analyst upgrades:

• Jefferies upgraded shares of Red Hat (NYSE:RHT) to Buy from Hold after their checks indicated Red Hat's November quarter results will be in-line due to solid Jboss sales. The firm also believes a potential new partnership with Cisco (NASDAQ:CSCO) could provide share upside.
  
• Barclays upgraded Amazon.com (NASDAQ:AMZN) to Overweight from Equal Weight as they believe the company's competitive position will strengthen during the current downturn and that the company will gain share.
• JP Morgan upgraded YRC Worldwide (NASDAQ:YRCW) to Neutral from Underweight following the announcement that the company and the Teamsters will vote on contract modifications.
• Del Monte Foods (NYSE:DLM) was raised to Overweight from Equal Weight at Stephens.
  
• Thomson Reuters (NYSE:TRI) was upgraded at Morgan Stanley to Equal Weight from Underweight.
  
• Reliant Energy (NYSE:RRI) was lifted to Outperform from Market Perform at Wachovia.

Analyst downgrades:

• B. Riley downgraded shares of Hot Topic (NASDAQ:HOTT) to Neutral from Buy to reflect a lack of visibility into 2009 and valuation but raised their target price to $9.30 from $8.20.
• Citigroup cut KLA-Tencor (NASDAQ:KLAC) to Hold from Buy to reflect their more offensive stance on the semi group as they view KLA-Tencor as a more defensive name. The firm lowered their target to $22 from $31.
• KeyBanc downgraded Arch Chemicals (NYSE:ARJ) to Underweight from Hold citing global economic headwinds, the stronger dollar, pension costs, and continued weakness in North American housing, among other reasons.
  
• Jo Ann Stores (NYSE:JAS) was cut to Hold from Buy at Soleil.
• Calyon downgraded Schlumberger (NYSE:SLB) to Outperform from Buy.
• Amdocs (NYSE:DOX) was downgraded to Neutral from Buy at Goldman.

Analyst upgrades:

• Oppenheimer upgraded Genzyme (NASDAQ: GENZ) to Outperform from Perform on expectations that upcoming regulatory events, mainly approvals of Mozobil and 2,000L Myozyme, will serve as positive catalysts.
  
• Ladenburg analyst Dick Bove raised Bank of New York (NYSE: BK) to Buy from Neutral as he now believes the Russian lawsuit is turning in the bank's favor and is no longer a significant risk.
  
• Societe Generale upgraded UBS (NYSE: UBS) to Buy from Hold on valuation and the company's deal with the Swiss government.
  
• Bed Bath & Beyond (NASDAQ :BBBY) was upgraded to Market Perform from Underperform at Friedman Billings.
  
• RC2 Corp (NASDAQ: RCRC) was lifted at Wachovia to Outperform from Market Perform.
  
• Cintas (NASDAQ: CTAS) was upgraded to Hold from Sell at Citigroup.

Analyst downgrades:

Analyst upgrades:

• Citigroup upgraded shares of Cadbury (NYSE: CBY) to Hold from Sell on the company's pricing initiatives and their expectations for margin expansion.
  
• Jefferies upgraded shares of Medicis (NYSE: MRX) to Buy from Hold and raised its target to $16 from $12.50 as they believe the company's settlement with Impax should lift valuation and drive higher earnings.
  
• Cowen upgraded Williams-Sonoma (NYSE: WSM) to Neutral from Underperform on valuation. Shares were also upgraded at Merrill Lynch to Buy from Underperform.
• Signet Group (NYSE: SIG) was raised to Neutral from Sell at Goldman.
  
• EMC Corp (NYSE: EMC) was upgraded to Buy from Accumulate at ThinkPanmure.
  
• DSP Group (NASDAQ: DSPG) was upgraded at RBC Capital to Sector Perform from Underperform.

Analyst downgrades:

Analyst upgrades:

• Oppenheimer upgraded shares of Premiere Global (NYSE: PGI) to Outperform from Perform on valuation and believes the company's strategic initiatives will drive "healthy" top-line results in a difficult economy.
  
• Citigroup upgraded Prudential (NYSE: PRU) to Buy from Hold on valuation, as they believe the stock is oversold at current levels. Though upgraded, the firm lowered their target price to $30 from $80.
  
• Citigroup also upgraded Bankrate (NASDAQ: RATE) to Buy from Hold as they believe the company will benefit from the financial market volatility and that the risk/reward is attractive at current levels. The firm maintains a $40 target on the stock.
• Hospitality Properties (NYSE: HPT) was raised to Outperform from Sector Perform at RBC Capital.
  
• Diamond Offshore (NYSE: DO) was upgraded at Merrill Lynch to Buy from Neutral.
  
• Alcon (NYSE: ACL) was upgraded to Outperform from Market Perform at Wachovia.

Analyst downgrades:

Analyst upgrades:

• Canaccord upgraded Rio Tinto (NYSE: RTP) to Buy from Hold citing valuation following the severe price decline following BHP Billiton's (NYSE: BHP) dropped bid.
• UBS upgraded Itron (NASDAQ: ITRI) to Buy from Neutral citing valuation and defensive business mix.
• Jefferies upgraded shares of HealthSouth (NYSE: HLS) to Buy from Hold on valuation and maintains a $13.50 target.
• Melco PBL Entertainment (NASDAQ: MPEL) was raised to buy from Neutral at Goldman.
• PG&E (NYSE: PCG) was upgraded at Merrill Lynch to Buy from Neutral.
• HSBC Holdings (NYSE: HBC) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

Analyst upgrades:

• Baird upgraded Regal-Beloit (NYSE: RBC) to Outperform from Neutral based on valuation and growth expectations.
• Black & Decker (NYSE: BDK) and Lennar (NYSE: LEN) were upgraded to Buy from Neutral at UBS based on valuation.
• Kroger (NYSE: KR) and Public Storage (NYSE: PSA) were added to Goldman's Conviction Buy List.
• CIBC upgraded Biovail (NYSE: BVF) to Sector Performer from Sector Underperformer.
• Abercrombie & Fitch (NYSE: ANF) was raised to Neutral from Underperform at Cowen.

Analyst downgrades:

• Merrill downgraded Campbell Soup (NYSE: CPB) to Neutral from Buy and expects marketing and promotional spending to limit earnings growth in 2009 and 2010. The firm lowered their target to $35 from $42.
• Mechel Steel (NYSE: MTL) was cut to Underweight from Equal Weight at Morgan Stanley to reflect declining coal demand.
  
• Friedman Billings downgraded shares of Legg Mason (NYSE: LM) to Underperform from Market Perform on liquidity concerns given the Legg Mason's leveraged balance sheet and falling EBITDA. The firm lowered their target to $7 from $11.

Analyst upgrades:

• Jefferies upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Buy from Hold on valuation with the stock down 65% in two months as they believe the company has a "best-in-class fundamental story." The firm lowered its target to $25 from $30.
• Morgan Stanley upgraded Sanofi-Aventis (NYSE: SNY) to Overweight from Equal Weight on valuation and believes near-term cost reductions could provide a positive catalyst.
• Citigroup upgraded New York Times (NYSE: NYT) to Hold from Sell and lowered its target to $5.50 from $7 on valuation and believes the dividend cut will boost the company's liquidity.
• Pantry (NASDAQL PTRY) was upgraded to Outperform from Market Perform at Friedman Billings.
• LECG Corp (NASDAQ: XPRT) was raised to Buy from Neutral at UBS.
• Thomson Reuters (NYSE: TRI) was upgraded at RBC Capital to Outperform from Sector Perform.

Analyst downgrades:

• Jefferies downgraded Suntech (NYSE: STP) to Hold from Buy and lowered its target to $6 from $25 as they believe concerns about a convert refinancing in February 2010 will continue to weigh on the stock.
• Credit Suisse cut Ericsson (NASDAQ: ERIC) to Underperform from Outperform due to expectations for a decline in wireless infrastructure spending.
• ING downgraded shares of Rio Tinto (NYSE: RTP) to Hold from Buy as they believe it will be challenging for the company to execute asset sales planned at reducing debt in the current environment.

Analyst upgrades:

• Microsoft (NASDAQ: MSFT), Gap (NYSE: GPS) and Healthcare Services (HCSG) were today's noteworthy upgrades:
  
• Oppenheimer upgraded shares of Microsoft (NASDAQ: MSFT) to Outperform from Perform on valuation as they see a trading opportunity following the recent sell-off. The firm established a $22 target on shares.
  
• Citigroup upgraded Gap (NYSE: GPS) to Buy from Hold on its "solid" Q3 results and greater visibility. The firm lowered their target to $12 from $14.
  
• William Blair upgraded shares of Healthcare Services (NASDAQ: HCSG) to Outperform from Market Perform to reflect the company's strong financial position and stable business outlook.
• ARM Holdings (NASDAQ: ARMH) was upgraded to Buy from Neutral and added to the Conviction Buy List.
  
• Hewlett-Packard (NYSE: HPQ) was also added to the Conviction Buy List.
  
• Intuit (NASDAQ: INTU) was raised to Buy from Sell at UBS.
  
• Cyberonics (NASDAQ: CYBX) was lifted to Buy from Neutral at Piper Jaffray.

Analyst downgrades:

• Baird downgraded Autodesk (NASDAQ: ADSK) to Neutral from Outperform and lowered its target to $20 from $31 following the company's weak Q4 guidance. Shares were also downgraded to Underperform from Buy at Merrill Lynch.
  
• Friedman Billings downgraded shares of Goodrich (NYSE: GR) to Market Perform from Outperform as they do not expect a turnaround in the commercial aerospace stocks in the near term. The firm lowered their target to $46 from $83.
  
• UBS cut VMware (NYSE: VMW) to Sell from Neutral and lowered its target to $15 from $21 following checks that indicate that consensus license growth expectations are too aggressive for Q4 and FY09.
• Sunpower (NASDAQ: SPWRA) was lowered to Underperform from Neutral at Merrill Lynch.
  
• Gen-Probe (NASDAQ: GPRO) was downgraded at Morgan Stanley to Equal Weight from Overweight.
• Goldman removed Emulex (NYSE: ELX) from its Conviction Buy List.

Analyst initiations:

• Google (NASDAQ: GOOG) was initiated at Merriman with Sell rating. Merriman's checks indicate the decline in consumer and business purchasing is having a dampening effect on search engine marketing. The firm sees downside risk to consensus estimates and recommends waiting for a better entry point. The firm thinks shares could reach $200 to $240 in the near-term.
  
• Oppenheimer believes Cadence Pharmaceuticals (NASDAQ: CADX) is sufficiently capitalized to reach FDA approval of Acetavance and Omigard. Shares were initiated with an Outperform rating and $10 target.
  
• William Blair believes Cisco (NASDAQ: CSCO) must evolve from selling pure infrastructure hardware to providing platforms with higher value and intelligence. The firm started shares with a Market Perform rating.
• Wilmington Trust (NYSE: WL) and Boston Private (NASDAQ: BPFH) were initiated with Equal Weight ratings at Morgan Stanley.
  
• EMC Corp (NYSE: EMC) was assumed at ThinkPanmure with an Accumulate rating and $12 target.
  
• John Bean Technologies (NYSE: JBT) was started with a Buy rating at Janney Montgomery.

Analyst upgrades:

• Societe General upgraded BASF AG (OTC: BASFY) to Buy from Hold. The firm believes the bad news is out and that BASF has a strong market position.
  
• Pali Capital upgraded Hot Topic (NASDAQ: HOTT) to Buy from Neutral based on the ongoing merchandise catalyst, the opportunity to reclaim the mainstream kid and closing underperforming stores, which create the most favorable conditions in the last 5+ years.
  
• Stanford upgraded L-1 Identity (NYSE: ID) to Buy from Hold on valuation, and the firm sees little risk to the company from the Obama Administration.
• Gymboree (NASDAQ: GYMB) and Windstream (WIN) were raised to Overweight from Neutral at JP Morgan.
  
• Doral Financial (NYSE: DRL) was upgraded at B. Riley to Buy from Neutral.
  
• Alumina (NYSE: AWC) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

• Credit Suisse downgraded Targanta (NASDAQ: TARG) to Underperform from Outperform following the FDA Panel's rejection of Oritavancin.
  
• Citigroup downgraded BASF AG (OTC: BASFY) to Sell from Hold and sees no reason to own the stock following the company's profit warning. Shares were also downgraded at WestLB to Hold from Add.
  
• Deutsche Bank downgraded shares of Amedisys (NASDAQ: AMED) to Hold from Buy and lowered its target to $53 from $75 on concerns over the company's deteriorating A/R aging trends.
• VeriFone Holdings (NYSE: PAY) and Navios Maritime (NYSE: NMM) were lowered to Neutral from Overweight at JP Morgan.
  
• NTT DoCoMo (NYSE: DCM) was downgraded at Citigroup to Hold from Buy.

Analyst initiations:

• Needham expects shares of Cepheid (NASDAQ: CPHD) to be driven by continued market penetration in the hospital acquired infection market, new test introductions, GeneXpert Infinity sales, and molecular diagnostics growth from sales outside of traditional molecular testing areas. Shares were initiated with a Buy rating and $21 target.
  
• Needham also initiated Gen-Probe (NASDAQ: GPRO) with a Hold rating and expects market share gains for the company when PANTHER is approved in 2010/2011.
  
• William Blair believes Harbin Electric (NASDAQ: HRBN) is an "interesting" opportunity for exposure to rapid growth in infrastructure within the People's Republic of China. The firm started shares with a Market Perform rating.
• Boston Scientific (NYSE: BSX) was initiated with a Buy rating and $11 target at UBS.
  
• NutriSystem (NASDAQ: NTRI) was initiated with a Neutral rating at Janney Montgomery.
  
• Ener1 (NYSE: HEV) was assumed at JMP Securities with an Outperform rating and $9 target.
  

How many days, months, quarters, etc. will this ugly bear market continue? It is just as bad as buying dips on Internet stocks in 2000. The FOMC minutes gave a lowered economic expectation for 2009, like we didn't know that was coming. Housing starts were the worst on record, and now inflation is coming down so hard that deflation is the new damnation of the markets. Does it really matter what gets said anymore? No, it doesn't. Gee, were you even surprised that the deterioration into the close only picked up steam and the Dow shed 5% to close below 8,000 as the S&P decided to close at a five-year low? Sorry there is no good news, but this market is no longer a market.

Citigroup Inc. (NYSE: C) is trading like it is no longer going to be around as its old self. This is truly ugly and unfair, but then again ... who has been rewarded for defending a financial stock? NO ONE. Shares were down 21% at $6.53 before the close.

E*TRADE Financial Corp. (NASDAQ: ETFC) gave pretty decent numbers considering the current climate, yet it is getting crushed every day along with anything and everything else financial. This one was down 17%at $1.03 right before the close.

China-based Suntech Power Holdings (NYSE: STP) is slated to report its third-quarter earnings results ahead of the opening bell tomorrow, and the solar stock looks particularly vulnerable to a post-report drubbing. Sector peer JA Solar (NASDAQ: JASO) fell to an all-time low last week after offering a weak outlook, while Trina Solar (NYSE: TSL) today lowered its revenue forecast for 2008.

Currently, First Call reports that analysts are expecting STP to report a quarterly profit of 42 cents per American depositary receipt. Suntech has a respectable history in the earnings spotlight, having exceeded the Street's forecast in three out of its past four reports.

On the plus side, it seems as though many brokerage firms have already downwardly revised their expectations for STP. There have been 10 cuts to the firm's average 2008 earnings-per-share estimates, compared to just two increases.

Plus, several analysts have issued bearish notes on Suntech in the past few weeks: Jefferies & Co. cut its price target on November 17; JPMorgan Chase cut the stock from "neutral" to "underweight" and lowered its price target on November 16; Raymond James downgraded STP from "strong buy" to "outperform" on November 13, the same day that AmTech Research slashed its price target; and Deutsche Bank cut the stock from "hold" to "sell" on November 10.

Analyst upgrades:

• UBS upgraded Pacific Sunwear (NASDAQ: PSUN) to Neutral from Sell and said liquidity is no longer a near-term concern. The firm lowered Pacific Sunwear's target to $1.50 from $3. Citigroup upgraded shares to Hold from Sell on valuation following the recent weakness and believes Pacific Sunwear has sufficient liquidity to remain a going concern.
  
• Calyon believes Reliant Energy (NYSE: RRI) will be successful in unwinding the Merrill Lynch Retail credit sleeve and obtaining alternative collateral. The firm upgraded shares to Buy from Add.
  
• JP Morgan said Cogent's (NASDAQ: COGT) position in homeland security and the defense markets make it less sensitive to an economic downturn, making valuation attractive. JP Morgan upgraded shares to Overweight from Neutral and raised its target to $13 from $10.50.
• Goldman added Research in Motion (NASDAQ: RIMM) to its Conviction Buy List and removed Riverbed (NASDAQ: RVBD) from the Conviction Sell List.
  
• J.M. Smucker (NYSE: SJM) was raised to Buy from Underperform at Merrill Lynch.

Analyst upgrades:

• Cowen upgraded Aaron Rents (NYSE: RNT) to Outperform from Neutral and believes the company's business model is gaining momentum despite the difficult environment. The firm views valuation as attractive.
  
• Citigroup upgraded shares of MedCath (NASDAQ: MDTH) to Hold from Sell on valuation following the recent sell-off. The company's target was lowered to $9 from $19.
  
• Stanford upgraded AeroVironment (NASDAQ: AVAV) to Buy from Hold based on valuation and because they believe its visibility over the next year has improved.
• Chiquita Brands (NYSE: CQB) was lifted to Buy from Hold at BB&T.
  
• Chico's FAS (NYSE: CHS) was upgraded to Neutral from Sell at UBS.
  
• FCStone (NASDAQ: FCSX) was raised to Strong Buy from Outperform at Raymond James.

Analyst downgrades:

• RBC Capital downgraded Clearwire (NASDAQ: CLWR) to Sector Perform from Outperform based on reduced valuation parameters and lack of catalysts. The company's target was lowered to $9 from $15.
• Kellogg (NYSE: K) and Coca-Cola (NYSE: KO) were cut to Neutral from Buy at UBS.
  
• Evergreen Solar (NASDAQ: ESLR) was downgraded at JP Morgan to Underweight from Neutral.
• Deutsche Telekom (NYSE: DT) was downgraded to Neutral from Buy at Goldman and to Hold from Buy at Deutsche Bank.

General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler LLC and the head of the United Auto Workers union will testify at a Senate Banking Committee hearing as they seek $25 billion in aid. While the democrats generally support their request, the Bush administration and Republican are against the proposed bailout. GM shares traded about 7.5% lower by midday.

The Home Depot Inc. (NYSE: HD) reported better-than-expected quarterly financial results Tuesday -- 45 cents per share profit vs. estimates of 38 cents per share according to Thomson Reuters. Sales, however, continued to decline -- 6.2% in the quarter -- amid ongoing weakness in the housing, construction and retail sectors and the home improvement retailer warned that sales could plunge 8% for the year. HD shares are up 2.25% in premarket trading (8:04 am). HD shares traded about 6.5% lower by midday.

Yahoo Inc. (NASDAQ: YHOO) founder and CEO Jerry Yang has finally decided to step aside as chief executive. Apparently, he's too emotionally involved to run the struggling internet portal properly. The new CEO will face the same problems Yang faced when Semel left and he was made CEO, boosting earnings and facing skeptic investors. But now the job will be that much harder in the current economic downturn. This could clear the way for Yahoo selling to Microsoft Corp. (NASDAQ: MSFT). YHOO shares are jumping nearly 12% in premarket trading (8:04 am). Shares of MSFT are up 1.2% in premarket trading as well (8:08 am). YHOO shares gained nearly 13% by midday.

[Added 8:32: Hewlett-Packard Co. (NYSE: HPQ) shares are soaring 12.75% in premarket trading (8:17 am) after the company said it expects fiscal fourth-quarter results above Wall Street's expectations due to its global reach, diverse customer base and cost-cutting measures, and despite the bad economy.] HPQ shares gained 12.75% by midday.

Analyst upgrades:

• UBS upgraded McDonald's (NYSE:MCD) to Buy from Neutral based on expectations the it can deliver on 2009 EPS expectations and potential for accelerating share gains.
  
• Bernstein upgraded Nokia (NYSE:NOK) to Outperform from Underperform on valuation following the company's profit warning. Merrill upgraded shares to Buy from Neutral to reflect valuation and Nokia's new product portfolio. Shares were also upgraded to Hold from Sell at WestLB.
  
• B. Riley raised UCBH Holdings (NASDAQ:UCBH) to Buy from Neutral to reflect the improved valuation and the company's stronger capital position provided by the US Treasury investment.
• Parexel (NASDAQ:PRXL) was upgraded to Buy from Hold at Jefferies.
  
• CTS Corp (NYSE:CTS) was lifted to Neutral from Underweight at JP Morgan.
  
• Hospitality Properties (NYSE:HPT) was upgraded to Equal Weight from Underweight at Morgan Stanley.

Analyst downgrades:

• Soleil downgraded Disney (NYSE:DIS) to Hold from Buy to reflect the weakening macro-economic outlook and their belief consensus estimates may be too high. The firm lowered their target to $23 from $40.
  
• Merrill downgraded Dell (NASDAQ:DELL) to Neutral from Buy on expectations PC sales will decline next year amid the slowing economy. The firm lowered Dell's target price to $13 from $22.
  
• Jefferies cut MDS Inc (NASDAQ:MDZ) to Hold from Buy to reflect slowing demand and a lack of catalysts to unlock the company's assets. The firm lowered their target to $10.50 from $15.
• Alcoa (NYSE:AA) was lowered to Neutral from Buy at UBS.
• Tesco PLC (Other OTC:TSCDY) was downgraded at JP Morgan to Underweight from Neutral.
  
• Merrill downgraded SAP AG (NYSE:SAP) to Neutral from Buy.
  
• Goldman added Altera (NASDAQ:ALTR) to the Conviction Sell List.

Analyst initiations:

• Citigroup thinks AutoZone (NYSE:AZO) will benefit from the slowdown in car sales and thinks the recent pullback is overdone. Shares were initiated with a Buy rating and $146 target.
• Citigroup also believes Advance Auto Parts (NYSE:AAP) will benefit from the slowdown in car sales and started shares with a Buy rating and $35 target.
  
• After Sunway (OTCBB:SUWG) reported higher than expected revenue, Roth Capital thinks the company is poised for substantial growth, but the firm thinks its remaining warrants may keep the shares trading at a modest valuation for a significant amount of time. The firm started shares with a Hold rating and $3.60 target.
• Mechel Steel (NYSE:MTL) was initiated with a Neutral rating at Merrill Lynch.
  
• China Life Insurance (NYSE:LFC) was assumed with a Buy rating at UBS.
  
• Gap (NYSE:GPS) was started at Cowen with a Neutral rating.