MOST NOTEWORTHY: Texas Instruments, SanDisk and Brocade were today's noteworthy downgrades:
Merrill Lynch downgraded shares of Texas Instruments (NYSE: TXN) to Neutral from Buy after the company reported lower-than-expected Q3 results due to concerns regarding elevated inventory levels and rising raw material and labor costs. Merrill lowered their target to $27 from $32.
Citigroup cut SanDisk (NASDAQ: SNDK) to Sell from Hold after the company reported a Q2 miss and offered lower-than-expected guidance. Citigroup lowered their target price to $14 from $20.
JMP Securities downgraded Brocade (NASDAQ: BRCD) to Market Perform from Outperform following the company's announcement to buy Foundry Networks, Inc. (NASDAQ: FDRY) for $19.25 per share.
OTHER DOWNGRADES:
ArthroCare (NASDAQ: ARTC) was lowered to Market Perform from Outperform at William Blair.
JP Morgan downgraded Assured Guaranty (NYSE: AGO) and Lenovo Group (LNVGY) to Neutral from Overweight.
Stocks futures are lower Tuesday morning, indicating U.S. stock markets will start on a down note following weak outlooks and disappointing financial results from several companies including Apple and American Express. With oil steady and no economic data out today, Wall Street will focus on earnings.
Apple Inc. (NASDAQ: AAPL) reported after the close Monday a record quarter that beat analyst estimates, posting a 31% surge in earnings. Mac and iPod sales satisfied investors, while iPhone sales were somewhat on the lighter side. What concerned investors most was the very weak guidance Apple gave, which was weak even by Apple's standards of lowballing. Other issues included margin squeeze and Jobs health. Apple shares were 10% lower in Frankfurt and premarket trading. American Express (NYSE: AXP), said late Monday its second-quarter results fell 38% due to the weakening economy. The company, which missed projections, caters to the more affluent who have good credit, and yet even this company felt the pains from the slowing economy. AmEx earned 56 cents per share compared to estimates of 83 cents per share. The company's stock tumbled AXP shares are down over 12% in premarket trading.
Also reporting Monday after the close were Merck & Co., Inc. (NYSE: MRK), Texas Instruments (NYSE: TXN) and SanDisk (NASDAQ: SNDK). MRK shares are down over 6.6% in premarket trading as the company said it would stop give guidance of results. TXN shares are also declining over 10.5% in premarket trading after it gave a disappointing forecast. SNDK shares are plunging over 16% in premarket trading after it swung to a Q2 loss, missing analyst estimates.
This morning we'll have another wave of earnings, and already started were DuPont and Wachovia.
The bulls got to lead the first day of the quarter, although we would note that if today was the norm that trading volatility isn't slowing down regardless of the direction. Oil rose again toward session highs on tensions and the usual myriad of reasons we cite for oil rising (yes, it's that routine). Here are today's unofficial closing levels:
We actually saw many financial sector upgrades from research firms today, which sent many of the corresponding shares higher in what feels like a "for once" statement. We would caution that later in the day an analyst report did note other banks would need more capital (again).
Citigroup downgraded Sandisk (NASDAQ:SNDK) to "hold: from "buy" according toBriefing.com. The news service also reports that Bank of America resumed coverage of Boeing (NYSE:BA) with a "neutral" rating.
Douglas A. Mcintyre is an editor at 247wallst.com.
MOST NOTEWORTHY: H&R Block, Talbots and SunPower were today's noteworthy upgrades:
Oppenheimer believes H&R Block (NYSE: HRB) has shown several catalysts over the past few months, most importantly the sale of its mortgage business. The firm, which upgraded shares to Outperform from Perform, believes the company's strong 2008 tax season will lead to future growth, and they think the stock can appreciate 20%+, as catalysts are not yet fully reflected in the stock.
Friedman Billings upgraded Talbots (NYSE: TLB) to Outperform from Market Perform as they believe the company has several sources of cash to avoid a liquidity crisis, charge card EPS contribution provides good visibility, improved merchandise margins, and better merchandising.
Credit Suisse raised SunPower (NASDAQ: SPWR) to Outperform from Neutral citing strength in Italy and other geographies.
OTHER UPGRADES:
Agco (NYSE: AG) was raised at Wachovia to Outperform from Market Perform.
UBS upgraded Metso Oyg (OTC: MXCYY) to Buy from Neutral.
JMP Securities upgraded SanDisk (NASDAQ: SNDK) to Market Perform from Underperform.
Stifel upgraded eBay (NASDAQ: EBAY) to Buy from Hold.
UBS downgraded Verizon (NYSE:VZ) from "buy" to "neutral" and took the same action with AT&T (NSYE:T) according toBriefing.com. The news service also reports that JMP upgraded Sandisk (NASDAQ:SNDK) to "market perform" from "underperform".
General Electric (NYSE: GE) was cut to Neutral from Outperform at JPMorgan, according to24/7 Wall St. The financial website also reports that Wendy's (NYSE: WEN) waised to Equal Weight from Underweight at Morgan Stanley.
MOST NOTEWORTHY: Edison International, Animal Health International and SanDisk were today's noteworthy initiations:
RBC Capital initiated Edison International (NYSE: EIX) with an Outperform rating and $64 target citing strong rate base growth and the favorable environment at Southern California Edison.
Piper assumed coverage of Animal Health International (NASDAQ: AHII) with a Buy rating and $10 target, as they believe the current valuation is attractive from long-term investors.
Pacific Crest started SanDisk (NASDAQ: SNDK) with a Sector Perform rating and believes the valuation is too high following the recent strength as product margins are trending down.
OTHER INITIATIONS:
Sandler initiated Heritage Commerce (NASDAQ: HTBK) with a Hold rating and $16 target.
Burger King (NYSE: BKC) was initiated with a Buy rating and $34 target at Piper.
RBC Capital assumed U.S. Geothermal (AMEX: HTM) with an Outperform rating and $4 target.
Today started out as a good day, but traders went back to "do the opposite of what feels good." The Conference Board showed that April's leading economic indicators were +0.1%. Oil also stayed above $127 per barrel.
Here are the unofficial closing prices for US index levels:
Amazon.com (NASDAQ: AMZN) saw a sharp rise with shares up over 7% at $82.22 late in the day after Goldman Sachs added it to the CONVICTION BUY LIST.
Campbell's Soup (NYSE: CPB) saw a 5% drop by the end of the day to $34.06 after a disappointing result.
Lowe's Companies (NYSE: LOW) saw a 2.5% drop to $24.25 by the end of the day after the company's earnings came in line but guidance was weak.
Pacific Ethanol Inc. (NASDAQ: PEIX) saw shares rise an unbelievable 49% with shares at $4.78 late in the day after the battered ethanol producer beat earnings expectations.
SanDisk Corp. (NASDAQ: SNDK) was down over 8% at $29.74 in the final minutes today after making cautious comments at a JPMorgan investor conference.
Jon Ogg produces and edits the "10 Stocks Under $10" newsletter and he does not own securities in the companies he covers.
MOST NOTEWORTHY: U.S. semiconductors, Teekay Offshore and Oplink Communications were today's noteworthy upgrades:
Goldman upgraded the U.S. Semiconductor Sector, including Intel (NASDAQ: INTC) and SanDisk (NASDAQ: SNDK) to Attractive from Neutral. The firm believes semi fundamentals are poised to improve in 2H08 and that valuations are reasonable.
Wachovia upgraded Teekay Offshore (NYSE: TOO) to Outperform from Market Perform based on valuation and increased distribution growth outlook following the acquisition of an additional 25% ownership interest in Teekay Offshore Operating, L.P.
Merriman upgraded shares of Oplink Communications (NASDAQ: OPLK) to Buy from Neutral as it believes the company is an attractive takeover target following the Finisar (NASDAQ: FNSR) and Optium (NASDAQ: OPTM) merger, given its low-cost Chinese manufacturing capacity and attractive $140M cash balance.
OTHER UPGRADES:
Goldman upgraded Amazon.com (NASDAQ: AMZN) to Buy from Neutral and added shares to its Conviction Buy List.
William Blair raised Interpublic Group (NYSE: IPG) to Outperform from Market Perform.
MOST NOTEWORTHY: The Department store sector, SanDisk and CNET Networks were today's noteworthy downgrades:
Goldman downgraded the department store sector to Neutral from Attractive after raising its 2008 oil forecast to $149 from $115, as it believes higher gas prices will impact consumer discretionary spend and sentiment. Goldman downgraded JC Penney (NYSE: JCP) and Nordstrom (NYSE: JWN) to Neutral and also removed Kohl's (NYSE: KSS) from its Conviction Buy List.
JMP Securities downgraded SanDisk (NASDAQ: SNDK) to Underperform from Market Perform based on increased competition in NAND, a potential decline in royalty income, valuation, and lack of catalysts from flash-based solid state drives.
CNET Networks (NASDAQ: CNET) was cut to Neutral from Buy at Banc of America following the tender offer from CBS (NYSE: CBS).
Goldman Sachs cut the ratings on J.C. Penney (NYSE:JCP) and Nordstrom (NYSE:JWM) from "buy" to "neutral" due to the rising price of oil, according toMarketWatch.
Morgan Stanley began CostCo (NASDAQ:COST) at "equal weight" according toBriefing.com. The news service also reports that JPM downgraded Sandisk (NASDAQ:SNDK) from "market perform" from "underperform".
Douglas A. McIntyre is an editor at 247wallst.com.
Companies from Nokia (NYSE:NOK) to Samsung are trying to create a product to compete with the Apple (NASDAQ:AAPL) iPhone. Now RIM (NASDAQ:RIMM) will join the group.
RIM will come out with a touchscreen version of its Blackberry, probably in the third quarter. The decision is based on a false premise, which is that people want to buy an "iPhone" from someone other than Apple.
According toThe Wall Street Journal "Dubbed the Thunder, the new BlackBerry is among RIM's strongest moves so far to appeal to the increasing number of consumers opting for multimedia phones."
The market has heard this song before. Over a year ago, both Sandisk (NASDAQ:SNDK) and Microsoft (NASDAQ:MSFT) came to market with competition for the iPod. Neither made any progress.
As infantile as the reasoning may seem, Apple built a nearly perfect product, which has been confirmed by strong demand , and plans to improve on it with features like 3G capability. Competition cannot replace what the customer views as irreplaceable.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 newsletter.
After hitting a one-year high of $59.75 in July, the stock hit a one-year low of $19.54 earlier this month. SNDK opened this morning at $21.65. So far today the stock has hit a low of $21.61 and a high of $22.74. As of 1:15, SNDK is trading at $22.69, up $1.43 (6.7%). The chart for SNDK looks neutral and improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.
For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $17.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make an 8.7% return in just 7 weeks as long as SNDK is above $17.50 at May expiration. SanDisk would have to fall by more than 22% before we would start to lose money.
NDK hasn't been below $19 at all in the past year and has shown support around $21 recently. This trade could be risky if the company's earnings (due out in late April) disappoint, but even if that happens, this position could be protected by the support the stock looks to be forming right around $20, where the chart is flattening out. Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in SNDK.
Last week, I wrote one article about 10 stocks making new 52-week highs and another about 10 stocks making new 52-week lows. Gold, oil and steel plays made up the majority of stocks making new highs while technology and finance companies were the ones plummeting.
Both articles gave some very basic rules on how to spot reversals while recommending investors cut their losses quickly and let their winners run. And, both articles were released mid-week around the same time of day. Yet the article about stocks making new lows turned out to be more than seven times as popular!
Why do you think that is? Sure, they're slightly more actively traded, but I believe investors are not comfortable buying into or holding commodity plays because they've already gone up so much. But they're perfectly willing to go down with the ship on blue chip brokers and technology plays, sometimes even doubling and worse, tripling up because they're invested in such "quality companies."
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MOST NOTEWORTHY: Texas Instruments, SanDisk and Brocade were today's noteworthy downgrades: 
Stocks futures are lower Tuesday morning, indicating U.S. stock markets will start on a down note following weak outlooks and disappointing financial results from several companies including Apple and American Express. With oil steady and no economic data out today, Wall Street will focus on earnings.
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Last week, I wrote one article about 10 stocks making new 52-week highs and another about 10 stocks making new 52-week lows. Gold, oil and steel plays made up the majority of stocks 
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