Analyst upgrades:

• Citigroup upgraded FPL Group (FPL) to buy from hold on valuation and recommends buying the stock into the staff recommendation. The firm raised its target on shares to $58 from $55.
• Deutsche Bank upgraded Smithfield Foods (SFD) to buy from hold as it believes the company's fundamentals and export demand outlook are improving. The firm raised its target on shares to $20 from $12.
• Credit Suisse upgraded T. Rowe Price (TROW) to outperform from neutral and raised its target to $60 from $55 based on strong net inflows and potential operating leverage.
• Microchip (MCHP) was upgraded to neutral from sell at Goldman.
• Toll Brothers (TOL) was upgraded to outperform from market perform at Wells Fargo.
• Ascent Solar (ASTI) was upgraded to hold from underperform at Jefferies.

The markets opened lower this morning and have continued to slide all day, mostly due to poor reports on manufacturing and unemployment. Still, for the third quarter both the DJIA and the S&P 500 indexes gained about 15%. Now, it appears that faith in an economic recovery is wobbling, primarily as a result of expected growth in unemployment and continuing low consumer spending. The federal stimulus program has pumped about $86 billion into the economy so far, but that hasn't been enough to shake loose tight-fisted lenders or cash-conserving consumers.

Here are the numbers::

Dow 9,509.28 -203.00 (-2.09%)
S&P 500 1,029.84 -27.24 (-2.58%)
Nasdaq 2,057.48 -64.94 (-3.06%)

Analyst upgrades:

• Merriman upgraded Sunpower (NASDAQ: SPWRA) two levels to Buy from Sell after transitioning coverage. The firm believes Sunpower is emerging from the current recession as the CleanTech leader and has a $38-$48 price range on shares.
• Citigroup upgraded Varian Medical (NYSE: VAR) to Buy from hold as it believes capex pressure and health care reform uncertainty is priced into shares, and demand will return as hospital budgets stabilize. Citi raised its target on shares to $45 from $36.
• FBR Capital upgraded Gap (NYSE: GPS) to Outperform from Market Perform following the Q2 results to reflect product improvement and ongoing inventory control. The firm raised its target on shares to $24 from $18.
• Schnitzer Steel (NASDAQ: SCHN) was upgraded to Neutral from Sell at UBS.
• UDR Inc. (NYSE: UDR) was upgraded to Market Perform from Underperform at Wells Fargo.
• The Buckle (NYSE: BKE) was upgraded to Buy from Hold at Roth Capital.

Analyst upgrades:

• Citigroup upgraded Adtran (NASDAQ: ADTN) to Buy from Hold on expectations the company will benefit from the broadband Stimulus funds.
• Morgan Stanley upgraded Continental Airlines (NYSE: CAL) to Overweight from Equal Weight based on relative valuation and views the company as a "survivor." Additionally, the analyst lowered 2009 industry estimates but believes it is the last cut for the year and is incrementally more positive on the sector.
• Morgan Stanley also upgraded EXFO Electro-Optical (NASDAQ: EXFO) to Overweight from Market Weight based on valuation.
• Tata Motors (NYSE: TTM) was upgraded to Buy from Hold at Deutsche Bank.
• Ascent Solar (NASDAQ: ASTI) was upgraded to Neutral from Underweight at JP Morgan.
• Mechel Steel (NYSE: MTL) was upgraded to Neutral from Underperform at Credit Suisse.

MOST NOTEWORTHY: DaVita, Dr. Pepper Snapple Group and Ascent Solar were today's noteworthy initiations:

• Suntrust expects DaVita's (NYSE: DVA) dominant market share to help in commercial contract negotiations and they view potential Medicare reimbursement changes as more of an opportunity than a risk. The firm started shares with a Buy rating and $62 target.
  
• JP Morgan initiated Dr. Pepper Snapple (NYSE: DPS) with an Underweight rating and expects declining free cash flow in 2008, which they note would be the third straight year.
  
• Ascent Solar (NASDAQ: ASTI) was assumed with a Hold rating and $14 target at Jefferies. The firm sees high development risk with the company just beginning to operate its pilot line and commencing initial planning for its first 30 MW commercial line.

OTHER INITIATIONS:

• Stanford initiated ViroPharma (NASDAQ: VPHM) with a Buy rating and $13 target.
  
• Goldman assumed Research in Motion (NASDAQ: RIMM) and Qualcomm (NASDAQ: QCOM) with Buy ratings and targets of $163 and $55, respectively.
• Blue Nile (NASDAQ: NILE) was initiated at Thomas Weisel with an Underweight rating and $44 target.

MOST NOTEWORTHY: Ascent Solar, Xcorporeal and Chipotle Mexican Grill were today's noteworthy initiations.

• Cowen said Ascent Solar Technologies Inc.'s (NASDAQ: ASTI) unique thin-film solar technology is well suited for integrated applications. Shares were started with an Outperform rating.
• Roth Capital believes Xcorporeal Inc (AMEX: XCR) is targeting a large, unmet market, as the firm notes that 500K patients are expected to receive kidney therapy over the next few years. Roth, which initiated shares without a rating, anticipates that the company will obtain regulatory approval for the home therapy and critical care markets during the next few quarters, possibly creating a catalyst for the stock to appreciate.
• JP Morgan initiated the Class B shares of Chipotle Mexican Grill Inc (NYSE: CMG.B) with an Overweight rating as they believe the recent pullback provides a compelling entry point.

OTHER INITIATIONS:

• Lehman initiated NCR Corporation (NYSE: NCR) with an Overweight rating and $30 target.
• Sandler initiated Delphi Financial Group Inc (NYSE: DFG) with a Buy rating and $34 target.

Today was an odd day, and despite the mixed index levels it should be considered a win. Oil rose sharply and was over $127.00 at one point after the Saudi's said that demand didn't justify increasing production in oil; Goldman Sachs put oil's average target for the second half of 2008 above $140/barrel. To top it off, the controversial University of Michigan consumer confidence level came in at the lowest reading since 1980. Even housing saw strange information as the rise in building permits and housing starts came out much higher than expected: so much for house prices stabilizing.

DJIA 12,983.13 (-9.53; -0.07%)
S&P500 1,425.06 (+1.49; +0.10%)
NASDAQ 2,528.79 (-4.94; -0.19%)
10 Yr Bond 3.850% (+0.007%)
52-week lows
TOP 10 ANALYST CALLS

Ascent Solar Technologies, Inc. (NASDAQ: ASTI) saw a drop-off after it priced a 3.8 million share secondary offering at $14.00, well under yesterday's close. In the final minutes, shares were down 6% at $14.93.

Hoku Scientific (NASDAQ:HOKU) is trading up 14% on news that one of its utilities projects has been approved.

Lundin Mining (NYSE:LMC) is up almost 7% on a strong first quarter.

KongZong (NASDAQ:KONG) is down about 15% on poor earnings.

Ascent Solar (NASDAQ:ASTI) is down over 4% on dilution concerns from an offering of new shares.

Douglas A. McIntyre is an editor at 247wallst.com and the author of the Ten Stocks Under $10 newletter.