Analyst upgrades:

• Axys Tech (NASDAQ: AXYS) was upgraded to Outperform from Market Perform at Morgan Keegan on valuation.
  
• Credit Suisse upgraded Cemex (NYSE: CX) to Neutral from Underperform following the company's refinancing announcement.
  
• Patni Computer (NYSE: PTI) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

• Merriman downgraded Environmental Power (NASDAQ: EPG) to Neutral from Buy citing a lack of visibility into the company's capital raise and lowered their estimates to reflect a slippage in project schedules.
  
• Jefferies cut inVentiv Health (NASDAQ: VTIV) to Hold from Buy as they believe budget cuts at the company's client base make 2009 estimates too high. The firm lowered their target to $11 from $15.
  
• Oppenheimer downgraded RSC Holdings (NYSE: RRR) to Perform from Outperform to reflect the continued deterioration in non-residential construction and valuation following the recent rally.
• Smurfit-Stone (NASDAQ: SSCC) was lowered to Hold from Buy at Deutsche Bank.
  
• Distribucion Y Servicio (NYSE: DYS) was downgraded to Sell from Hold at Deutsche Bank.
  
• Key Energy (NYSE: KEG) was downgraded at SMH Capital to Neutral from Accumulate.

Analyst initiations:

• AECOM Technology (NYSE: ACM) was initiated with an Outperform rating and $34 target at Baird. The firm is positive on AECOM's diverse portfolio of services and global reach.
  
• Baird also initiated Checkpoint (NYSE: CKP) with a Neutral rating and $11 target, citing the weak macro environment.
  
• Thomas Weisel said Integra LifeSciences (NASDAQ: IART) has little exposure to economically sensitive areas of healthcare and has a varied mix of products that provide a platform for sustainable organic growth. Shares were initiated with an Overweight rating.
• Piper Jaffray assumed CBS Corp (NYSE: CBS) with a Neutral rating.
  
• BioMarin (NASDAQ: BMRN) was started at Stanford with a Hold rating.
  
• Websense (NASDAQ: WBSN) was initiated with an Equal Weight at First Analysis.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. But every once in while an exception is made for a non-conforming but innovative/promising company, and along this line Checkpoint Systems is worth a review.

Checkpoint Systems, Inc. (NYSE: CKP) manufactures electronic article surveillance systems, radio frequency tags, electronic security devices, closed-circuit TV systems, and electronic access control systems used by retailers.

Analysts like the fact that Checkpoint is well-positioned for the U.S. economic slowdown: about two-thirds of CKP's revenue stems from international sources. Analysts are also encouraged by a re-acceleration of longer-standing product lines, and the continued growth of CheckNet. A blue chip clientele adds to the revenue mix.

Monday, December 31

• PDUFA date for Pharmacyclics (NASDAQ: PCYC)' Xcytrin for treatment of non-small cell lung cancer patients with brain metastases.

Tuesday, January 1

• Markets closed for New Year's holiday.

Wednesday, January 2

• PDUFA date for SkyePharmaceuticals (OTC: SKYEY) and Sciele Pharmaceuticals (NASDAQ: SCRX) Sular Formulation for Hypertension. The FDA extended the PDUFA Date from November 2, 2007.

Thursday, January 3

• Ford Motor Company (NYSE: F) to report monthly sales at 1pm
• General Motors (NYSE: GM) to report monthly sales at 2pm.
• AngioDynamics (NASDAQ: ANGO) to report Q2 earnings; conference call at 4:30pm.

Friday, January 4

• Millennium Pharmaceuticals (NASDAQ: MLNM) to provide guidance at 8am.
• Checkpoint Systems (NYSE: CKP) to provide guidance at 10am.
• Federal Reserve Govenor Kohn to provide keynote speech at the AEA Annual Meeting in New Orleans at 11:45am.

Before the bell: Futures higher following bank news, ahead of housing data

Amazon.com, Inc. (NASDAQ: AMZN) disclosed its "Best of 2007" lists, which include the bestselling, most positively reviewed, most-wished-for and favorite gift products. While during Christmas the best selling computer was Apple's (NASDAQ: AAPL) Mac laptop, it was the Nokia Internet tablet PC that was overall best seller in 2007. The MacBook Pro notebook PC, however, was best reviewed and most frequently purchased as gift. The iPod, too, was most frequently purchased as gift and most wished for in the Electronics category. The Nintendo Wii was the best selling game, Microsoft's (NASDAQ: MSFT) Office Home and Student 2007 was best selling software and Starbucks's (NASDAQ: SBUX) assortment gift basket by Wine Country Gift Baskets was best selling in the Gourmet category.
And which book was the best selling? Need I even answer? Harry Potter and the Deathly Hallows by J.K. Rowling of course.

A few days after comScore released its November U.S. internet search ranking, Nielsen Online released its own report Thursday. Google Inc.'s (NASDAQ: GOOG) online search engine increased its lead in the U.S. Internet search market in November over October, with 4.25 billion searches, representing 57.7% of U.S. online searches, up from 55.5% in October. The, by now eternal second, Yahoo! Inc. (NASDAQ: YHOO) share was 17.9%, down from October's 18.8%. Microsoft's share also declined from 13.8% of the search market in October to 12% in November. Time Warner (NYSE: TWX) came in fourth place and IAC/InterActiveCorp's (NASDAQ: IACI) came in fifth.