Analyst Upgrades

• Wells Fargo upgraded Norfolk Southern (NSC) to outperform from market perform following the company's Q1 results.
• RBC Capital transferred coverage on Gildan Activewear (GIL) with an outperform from sector perform. The firm is positive on Gildan's low-cost producer strategy and free cash flow generation. The firm raised its target to $35 from $26.
• Wunderlich upgraded Delphi Financial (DFG) to buy from hold following the company's Q1 results and raised its target for shares to $31 from $29.
• Aflac (AFL) was upgraded to buy from neutral at Sterne Agee.
• Time Warner (TWX) was upgraded to outperform from neutral at Cowen.
• Pride International (PDE) was upgraded to outperform from neutral at Credit Suisse.

Today looked like a soft day for the market based on some added overseas concerns. Then on top of that came the Goldman Sachs charge from the SEC over civil fraud charges about its role in some mortgage derivative products. Financials were the worst hit today, but most sectors took a breather. Today was an excuse to take profits AND an opportunity for the bears to try to get back in the game.

Here were today's unofficial closing bell levels:

Dow 11,018.66 -125.91 (-1.13%)
S&P 500 1,192.13 -19.54 (-1.61%)
Nasdaq 2,481.26 -34.43 (-1.37%)
Major Analyst Calls

MOST NOTEWORTHY: Northrop Grumman, Phase Forward and Celestica were today's noteworthy upgrades:

• Cowen upgraded Northrop Grumman (NYSE: NOC) to Outperform from Neutral following the Q1 report based on accelerating growth. Shares were also upgraded at JP Morgan to Overweight from Neutral.
  
• Friedman Billings upgraded Phase Forward (NASDAQ: PFWD) to Outperform from Market Perform following the solid Q1 report and views guidance as beatable.
  
• CIBC raised Celestica (NYSE: CLS) to Sector Outperformer from Sector Performer following Q1 results, citing end markets that look stable.

OTHER UPGRADES:

• JP Morgan upgraded the Consumer Discretionary Sector to Overweight from Underweight.
  
• Wendy's (NYSE: WEN) was raised to Neutral from Sell at Goldman.
  
• Progenics Pharmaceuticals (NASDAQ: PGNX) was upgraded at Citigroup to Hold from Sell.
  
• Merrill Lynch raised Wal-Mart (NYSE: WMT) to Buy from Neutral.

Over the years, Phase Forward (NASDAQ: PFWD)'s sophisticated software has managed more than 10,000 clinical trials with companies like Merck and Co. (NYSE: MRK), GlaxoSmithKline (NYSE: GSK), and Eli Lilly (NYSE: LLY). And investors are taking notice, as the stock price is up about 50% this year.

In Q3, Phase Forward reported a 24% increase in revenues to $34.9 million and net income was $5.7 million, or 13 cents per share, up from $2.9 million or 8 cents per share in the same period a year ago. The company's cash balance increased by $7.6 million to $187 million.

Phase Forward scored several key customer wins in Q3, such as with Novartis (NYSE: NVS) and Eisai, which is one of the largest pharma companies in Japan. No doubt, it helps that the company's software platform is highly scalable for complex, global organizations. This is critical in combating rivals like Oracle Corp. (NASDAQ: ORCL), ArisGlobal, and etrials Worldwide (NASDAQ: ETWC).