Analyst upgrades:

• Wachovia upgraded shares of The Goldman Sachs Group Inc (NYSE: GS) to Outperform from Market Perform on expectations for greater pricing power given Goldman's position as the largest remaining independent securities firm.
• Keefe Bruyette upgraded Investment Technology Group Inc (NYSE: ITG) to Outperform from Market Perform as they believe the company will take market share with the reshaping of the large wire-house brokerage community. The company's target was raised to $37 from $33.
• Broadpoint raised Hoku Scientific Inc (NASDAQ: HOKU) to Buy from Neutral as they believe the contract with Tianwei New Energy reduces financing risk.
• ACE Ltd (NYSE: ACE) and The Travelers Companies Inc (NYSE: TRV) were upgraded to Buy from Neutral at Goldman.
• Axcelis Technologies Inc (NASDAQ: ACLS) was upgraded to Buy from Hold and Evergreen Solar Inc (NASDAQ: ESLR) was lifted to Hold from Sell at Citigroup.

Analyst downgrades:

Since advising readers to stay away from Big 5 Sporting Goods (NASDAQ: BGFV) about two weeks ago, the stock is down about 10%. After the bell today, the company is expected to report earnings. In my opinion, the stock is not a buy into earnings.

I expect Big 5 to earn 21-25 cents per share in EPS for the quarter, disappointing or coming in-line with the street., However, I think the company's guidance is going to scare investors. The continued crunch on the consumer in California (due to foreclosures) will probably remain an issue for the company, considering 54% of Big 5 stores are located in the state. I also believe that the comps for the previous quarter are going to force the company to remain very conservative in their comp growth guidance figures -- either reiterating the already-conservative figures or perhaps making further cuts.

All in all, while Big 5's stock is beginning to look very cheap at these levels, I don't think now is the time to buy because I don't expect sentiment to improve from here -- in fact, I think it could become even worse after a mediocre report today.