Analyst Upgrades

• Auriga upgraded Cisco (CSCO) to buy from hold, citing the company's improving strategic position in data centers.
• Blue Nile (NILE) was raised to buy from hold by Citigroup due to the recent pullback in shares.
• DuPont Fabros (DFT) was upgraded to buy from neutral at UBS, which said that said fundamentals in the data center space have been improving.
• Baird upgraded Sterling Bancshares (SBIB) to neutral from underperform based on valuation.
• Goldman Sachs upgraded Bristol-Myers (BMY) to buy from neutral.
• Amazon.com (AMZN) was raised to conviction buy from buy by Goldman.
• Jefferies upgraded Celgene (CELG) to buy from hold.

The latest trend in the utilities sector could deliver an unpleasant 'jolt' (pun intended) to electric power generation companies, if it continues.

U.S. electricity consumption unexpectedly dropped in Q2 and Q3, on a year-over-year basis, The Wall Street Journal reported Friday (subscription required), although The Journal cautioned that the data is early and incomplete.

Major electric power suppliers Xcel Energy (NYSE: XEL), Duke Energy (NYSE: DUK) and American Electric Power (NYSE: AEP) all reported declines in residential electricity use in recent quarters, compared to the previous year, The Journal reported.

An electric puzzle

Economist David H. Wang told BloggingStocks Friday electricity demand is a function of more factors than one might assume. The economic cycle, seasons, weather extremes, demographics, household formation, increased efficiency, technological change, and even popular culture trends are among the major factors affecting electricity demand.

Wang believes the major factor in the recent dip is the current U.S. recession. "I will defer to more-comprehensive U.S. Energy Department and power association data later, but I think without question the economic downturn is a major factor. When people lose jobs, many tend to give up housing and live with roommates or relatives. This decreases electricity use. Also, home foreclosures result in empty homes, which obviously use less energy than occupied homes."