Analyst upgrades:

• RBC Capital upgraded Bank of America (NYSE: BAC) to Outperform from Sector Perform and said the company has attractive franchise value and earnings power, and is nearing the start of a credit driven earnings recovery. The firm raised its target to $22 from $19.
• Oppenheimer assumed coverage of Amazon.com (NASDAQ: AMZN) and upgraded shares to Outperform from Perform. The firm expects Amazon's revenue growth to re-accelerate over the next several quarters, making consensus estimates too conservative. Opco set a $130 price target on the stock.
• Barclays upgraded Ford (NYSE: F) to Equal Weight from Underweight and believes the company will report Q3 results above the Street. The firm raised its Q3 EPS estimate to 7 cents from 16 cents, vs. consensus of 21 cents, and its price target to $8 from $7.
• Charles River Labs (NYSE: CRL) was upgraded to Neutral from Sell at Goldman.
• Briggs & Stratton (NYSE: BGG) was upgraded to Outperform from Neutral at Baird.
• Sealed Air (NYSE: SEE) was upgraded to Equal Weight from Underweight at Barclays.

Microsoft's (NASDAQ: MSFT) new operating system, Windows 7, is set to be released on October 22, 2009, but it's unlikely to have an impact on PC prices. So, if you're feeling the urge to rush out and buy a new box, try to hold out until the end of the month. You'll get a bit more life out of it.

Fortunately, PC prices aren't expected to get much lower, so the entire supply chain -- from chips to software -- has nowhere to go but up. The effect, though, has been to put some serious pressure on manufacturers and retailers to keep from screwing up the release.

Salesforce.com (NYSE: CRM) has a new champion: Dell (NASDAQ: DELL). The PC manufacturer is promoting the online sales force-enablement platform as a way to gain access to the hefty sums available in the technology services business. The deal would give Salesforce.com access to Dell's clients in the small and medium-sized business categories. Dell would sell Salesforce.com products and provide consulting services to help clients integrate the solution with their other enterprise applications. The dollars and cents of this union weren't disclosed.

Dell sees the margins of the services business and wants a piece of the action, particularly since the PC sector is low margin. Also, sales have been hit pretty hard as a result of the financial crisis. With PCs accounting for 60% of Dell's top-line, a bit of diversity isn't a bad idea. Currently, services account for only around 10% of Dell's sales.

There was a time when Dell Inc. (NASDAQ: DELL) was the cream of the crop in the PC business. Its college dorm beginnings and customization model allowed the company to separate itself from a host of other competitors.

It is hard to say what exact magic it was that allowed the DELL story to unfold, but suffice it to say the company was the best in the business at selling computers to individuals and small businesses. But I'm not so sure that is the case any longer. The heady days of the dot-com boom were when this company reached its prime. It has been a slow death ever since.

Can you believe it? The words 'invest,' 'manufacturing,' 'jobs,' and 'U.S.' in the same sentence.

No, it's not a joke. Intel (NASDAQ: INTC) announced Tuesday it will invest $7 billion over the next two years to build advanced manufacturing facilities in the United States, supporting about 7,000 jobs.

Intel said the investment will fund the build-out and deployment of the company's 32 nanometer (nm) manufacturing technology, which will be used to build faster, smaller chips that are also more energy-efficient.

Analyst upgrades:

• Baird upgraded Carlisle (NYSE:CSL) to Outperform from Neutral and lowered their target to $25 from $33 following the company's Q4 results citing attractive valuation and solid execution.
  
• Citigroup upgraded Talbots (NYSE:TLB) to Hold from Sell on valuation as they believe the company's cash flow is improving and does not expect the company to face bankruptcy in next three years.
  
• Jefferies upgraded shares of Spectra Energy (NYSE:SE) to Hold from Underperform on valuation following the company's Q4 results and raised their target price to $15 from $11.75.
• Costco (NASDAQ:COST) was upgraded to Buy from Neutral at UBS.
  
• AU Optronics (NYSE:AUO) and LG Display (NYSE:LPL) were upgraded to Buy from Neutral at Banc of America/Merrill.
  
• Alpha Natural (NYSE:ANR) was raised to Buy from Hold at Natixis.

Analyst upgrades:

• Citigroup upgraded shares of Lennar (NYSE:LEN) to Buy from Hold on valuation as they believe the recent sell-off on concerns of fraud is overdone. The firm thinks the allegations made by Barry Minkow/Fraud Discovery Institute are unfounded and has an $11 target on shares.
  
• Merriman upgraded Nautilus Group (NYSE:NLS) to Neutral from Sell after meeting with management to reflect increased optimism on the company's turnaround.
  
• Baird upgraded Leap Wireless (NYSE:LEAP) to Outperform from Neutral based on valuation and strong subscriber trends.
  
• Transocean (NYSE:RIG) was added to Goldman's Conviction Buy List.
  
• Pearson PLC (NYSE:PSO) was raised to Neutral from Underweight at JP Morgan.
  
• Smith & Nephew (NYSE:SNN) was lifted to Outperform from Neutral at Credit Suisse.

Analyst downgrades:

• JP Morgan downgraded Bed Bath & Beyond (NASDAQ:BBBY) to Underweight from Neutral and lowered their target to $20 from $26 as they believe potential benefits from the Linens' N Things closing are being overstated and that the risk/reward is unfavorable at current levels.
  
• Keefe Bruyette downgraded Citizens Republic (NASDAQ:CRBC) to Market Perform from Outperform and cut their target to $3 from $7 to reflect the company's lower capital position.
  
• UBS downgraded Energizer (NYSE:ENR) to Sell from Neutral and lowered their target to $40 from $48 citing signs of a battery price war, Wal-Mart's (NYSE:WMT) reduction in space allocation, and the company's cuts in investment.
  
• Chevron (NYSE:CVX) was removed from Goldman's Conviction Buy List.
  
• MetroPCS (NYSE:PCS) was lowered to Sector Perform from Outperform at RBC Capital.
  
• Lincoln Electric (NASDAQ:LECO) was cut to Sell from Neutral at Piper Jaffray.

Analyst initiations:

• Global Hunter believes Pep Boys (NYSE:PBY) is well-positioned to benefit from increased demand for replacement parts and maintenance services as new car purchases are deferred. Shares were initiated with a Buy rating and $5.50 target.
  
• Jefferies started Sanofi-Aventis (NYSE:SNY) with an Underperform rating and sees downside risk to the stock from the potential introduction of Lovenox generics in the U.S.
  
• Merriman assumed Alter Nrg (NYSE:ANRGF) with a Neutral rating and recommends waiting on the sidelines pending increased visibility on the company's gasification projects.
  
• JP Morgan (NYSE:JPM) was re-initiated with a Buy rating at Goldman. Shares were also added to Goldman's Conviction Buy List.
  
• Hudson City Bancorp (NYSE:HCBK) was assumed with an Overweight rating and $15 target at Barclays.
  
• DG FastChannel (NASDAQ:DGIT) was initiated at BWS Financial with a Strong Buy rating and $30 target.

Microsoft (NASDAQ: MSFT) had, if you'll pardon the pun, a soft first quarter. The data just didn't do anything for me. The software giant, which competes with Apple (NASDAQ: AAPL), Yahoo! (NASDAQ: YHOO), Google (NASDAQ: GOOG) and IBM (NYSE: IBM), reported after the close of the regular session on Thursday. The stock was down slightly in the after-hours session, which seemed reasonable enough to me.

It's not as if some huge miss was reported. It's just that the growth rates weren't the stuff of shareholder dreams. Revenues increased 9% to about $15 billion. Earnings per diluted share came in at $0.48, and that was one penny better than what Wall Street was looking for. But it was only three pennies better than the previous year's Q1 results. So, it's not like things are shooting up like a rocket for Mr. Softy.

In addition, a look at the statement of cash flows shows a decline in net cash generated from operations. That figure decreased 43% to $3.4 billion. Plus, management is being cautious in its outlook and has issued Q2 guidance for earnings that was below what Wall Street was hoping for. Microsoft says it will probably do between $0.51 and $0.53 per share; Wall Street wanted $0.55 per share. Oh well, can't please everyone. Especially not in this time period.

Laptop computers, especially small and light ones, were supposed to be the way the computer companies kept mobile users as customers. It has worked pretty well. At most large PC companies like Apple (NASDAQ: AAPL) and Dell (NASDAQ: DELL), laptops outsell desktops.

The profits from the laptop business could be under siege. Little netbooks from manufacturer in Asia, lead by Acer, are making $500 ultra-small machines that are good for e-mail and internet browsing. Beyond that, they don't do much, but many consumers don't need anything beyond those functions. The products may be a good way for Acer to get market share from larger U.S. PC companies.

In a recession, these "netbooks," are fairly attractive compared to $1,200 laptops that have a lot of features many people don't want to pay for.

According to Reuters, "Up to a third of netbook sales reflect customers ditching their old desktops and laptops, analysts say."

Dell's share price is down to $12.50 from a 52-week high of $30.77. The company and its peers do not need more competition in a world where the economy is hurting and price competition is fierce.

It does not want new competition, but it got it anyway.

Douglas A. McIntyre is an editor at 247wallst.com.

Investors tend to forget that some of the world largest PC companies are based in China, lead by Lenovo and Acer. The two companies run behind Dell (NASDAQ:DELL) and Hewlett-Packard (NYSE:HPQ) in global market share. But, that may be changing in a way that the two US companies will find unpleasant.

Research firm Gartner looked at PC sales around the world during the third quarter. According to Reuters, "Overall, worldwide PC shipments rose 15 percent from last year to 80.6 million units." To no one's surprise, growth in the US was slower, up 4.6%.

HP's global market share was 18.4% and Dell's was 13.6%. Acer rose to 12.5% making it the most improved of the three compared with last year.

Acer's secret is that it is selling netbooks, small PCs which usually cost under $500. Analysts have questioned whether consumers would want these because smartphones have many of the same functions. Acer has taken the gamble of ramping up production, a potentially risky move if the customers were not out there. The decision is giving them a chance to steal a march on the larger rivals.

The Acer move may say as much about what is wrong with US PC companies as its says about what is right at Acer. There are many people, especially in emerging markets, who are not likely to be able to spend $1,000 on a computer. And, the mobility of the US PC user is improving with the success of WiFi and 3G.

Dell and HP should be concerned every time they see someone walking down the street with a netbook. It has probably been sold to them by a competitor.

Douglas A McIntyre is an editor at 247wallst.com.

In a press release issued this morning, Dell (NASDAQ: DELL) warned investors that it is "seeing further softening in global end-user demand in the current quarter."

More optimistically, the company noted that "grew unit shipments faster than the industry in the first half of calendar 2008 and expects to grow faster than the industry for the full year."

That's bad for competitors with weaker brands such as Hewlett-Packard (NYSE: HPQ). Dell is struggling to meet its growth targets in the face of weakening demand, even as it gains market share. How badly are the companies that are doing average relative to their peers doing?

Dell's press release is more of a commentary on the market than the company itself although, in pre-market trading, it helped send Dell shares down nearly 7%.

Analyst upgrades:

• Societe Generale upgraded shares of Credit Suisse (NYSE: CS) to Buy from Sell as they believe the company is the European investment bank investors should own as sentiment gradually improves.
  
• Societe Generale also raised Deutsche Bank (NYSE: DB) to Hold from Sell as they believe it has managed the credit crisis well and that the government bailout of the GSEs will improve investor sentiment.
  
• Citigroup upgraded shares of Kimberly Clark (NYSE: KMB) to Buy from Hold as they expect the company to benefit from falling materials and energy prices. The firm raised their target to $71 from $60.
• UST Inc (NYSE: UST) was lifted at Morgan Stanley to Equal Weight from Underweight.
  
• Corning (NYSE: GLW) was upgraded to Overweight from Market Weight at Thomas Weisel.

Analyst downgrades:

• Credit Suisse downgraded the U.S. Homebuilders sector to Market Weight from Overweight to reflect deteriorating traffic trends and higher valuations. In addition, the firm cut Toll Brothers (NYSE: TOL), Pulte Homes (NYSE: PHM), D.R. Horton (NYSE: DHI) and KB Home (NYSE: KBH) to Neutral from Outperform.

Readers of this space know that my investment bias is toward large-cap companies with demonstrated business models and which have a competitive advantage in established markets, preferably with a favorable global trend as a support. In general, turnaround and business model change plays are avoided, but there are exceptions to the rule, and one is Corning.

Corning Inc. (NYSE: GLW), once a reliable but slow-growth kitchenware and cookware company, today represents one of the signature corporate transformation stories of the digital age.

Corning is one of the leading providers of fiber-optic cable, which the company invented more than 30 years ago. Further, its substrates business did not draw Wall Street's attention until technological advances enabled the price-competitive production of flat panel displays in flat panel televisions, desktop monitors and notebook computers.

When Dell, Inc. (NASDAQ: DELL) releases quarterly results Thursday how will it do? Dell has managed to quickly enter the consumer retailer market, which has helped it stave off the more valiant Hewlett-Packard Corp. (NYSE: HPQ) from running away with just about ever retailer PC sale these days. But investors are bound to say, "that was yesterday -- what have you done for me today?"

Analysts are expecting the company to report earnings of 33 cents per share on revenue of $15.66 billion, according to Thomson Reuters. Although Dell announced a $1 billion share buyback plan just a few months ago, it needs to all it can to not let its stock price implode. The growth may be over (permanently), and the brand may not be the premier name it once was. Add that to the fact that the competition (most notably H-P) enjoys every cost savings Dell once did, and the picture become way less rosy.

Does Dell have any angles left? From a fundamental PC selling standpoint, it's hard to make that argument. In terms of Micheal Dell's famous comment that Apple, Inc. (NASDAQ: AAPL) should be sold off in pieces and money returned to shareholders. My, my how the tables have turned. Still, Dell is not going anywhere fast and its stock price could be languishing in the dust for quite some time.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Going by ad campaigns alone, you would think that every person -- or, at least every cool person -- had abandoned their Windows PCs and hoisted themselves onto the Macintosh bandwagon. Not so. The truth is that PCs far outnumber Macs in the market. The big-business worlds of finance, law, medicine use predominantly PC, while the areas of video production, web design and art use Mac. These computers do most of the same things (play games and DVDs, word-process, create web pages, store and play music) but they are completely different operating systems. Even though Apple computers now include the Intel processor that makes it possible to use Windows-only applications, it can still be hard to compare products.

But what about the companies themselves? What does the Apple brand signify that the Dell brand does not? And vice versa.

Apple (NASDAQ: AAPL): Providing innovative products and a user-friendly interface, Apple has turned the whole computer thing into a fashion accessory. For someone who used Dell products for years and then switched to Mac, the difference is like night and day. A Mac is so easy to use. With a clean interface, a near-universal compatibility with external products and tools, these computers are a beautiful breeze. And now that Macs include Intel processors, one can switch back and forth between a Windows interface and a Mac interface, making previous incompatibilities (software, games, etc.) now perfectly compatible. And when it comes to customer service (see below) Apple really socks the house.