Analyst upgrades:

• FBR Capital upgraded Talbots (NYSE: TLB) to Outperform from Market Perform as it believes the company's inventory and SG&A control should help earnings and the stock's risk/reward is compelling at current levels. The firm raised its target on shares to $7 from $5.
• ThinkEquity upgraded Human Genome (NASDAQ: HGSI) to Buy from Accumulate to reflect higher assumptions for the company's Lupus treatment Benlysta. The firm raised its target on shares to $26 from $18.
• KeyBanc upgraded Parkway Properties (NYSE: PKY) to Buy from Hold based on valuation, improving fundamentals, and stable capital position. The firm has a $17 target on the stock.
• HSBC Holdings (NYSE: HBC) was upgraded to Overweight from Neutral at JPMorgan.
• BioScrip (NASDAQ: BIOS) was upgraded to Overweight from Neutral at Piper Jaffray.
• DISH Network (NASDAQ: DISH) was upgraded to Outperform from Neutral at Credit Suisse.

Analyst upgrades:

• Jefferies upgraded Autodesk (NASDAQ: ADSK) to Buy from Hold after the firm's channel checks indicated the company's business is stabilizing. Jefferies raised its target on shares to $27 from $20.
• Citigroup upgraded Veeco (NASDAQ: VECO) to Buy from Hold on expectations LED order momentum will continue and cost discipline will help margin leverage. Citi raised its target on shares to $24 from $8.
• Deutsche Bank upgraded Domtar (NYSE: UFS) to Buy from Hold on expectations earnings will improve meaningfully over the next year. The firm keeps a $24 price target on the stock.
• Varian (NASDAQ: VARI) was upgraded to Equal Weight from Underweight at Barclays.
• Air Products (NYSE: APD) was upgraded to Overweight from Neutral at JPMorgan.
• U.S. Steel (NYSE: X) was upgraded to Buy from Neutral at Goldman.

"Any company that can consistently create revenue out of air is worth a look," says Jim Stack, referring to Air Products & Chemicals (NYSE: APD).

In his InvesTech Market Analyst, the advisor and money manager explains, "We especially like a company that can create over $10 billion a year in sales ... from air (actually industrial gases)." Here, he explains the reasons he rates the shares a 'buy' in his model portfolio.

"For APD, much of that 'air' revenue comes from the sale of tonnage gases. Tonnage gas delivery involves the on-site or pipeline delivery of hydrogen and other chemicals to oil refineries.

Analyst upgrades:

• Oppenheimer upgraded FTI Consulting (NYSE:FCN) to Outperform from Perform on expectations the stock will outperform in the second half of 2009 due to easier comparisons and a "deeper and longer" restructuring cycle. The firm has a $62 target on shares.
• Citigroup upgraded Cigna (NYSE:CI) to Hold from Sell to reflect reduced balance sheet risk following the company's capital raise and the potential for a PBM sale. The firm raised its target price to $23 from $13.
• Goldman expects Coca-Cola Enterprises (NYSE:CCE) to benefit from favorable soda demand and lower commodity costs. The firm upgraded shares to Conviction Buy from Buy and has a $20 target on the stock.
• Novellus (NASDAQ:NVLS) was raised to Buy from Neutral at Bank of America/Merrill.
• CME Group (NASDAQ:CME) was upgraded at JP Morgan to Neutral from Underweight.
• Allegiant (NASDAQ:ALGT) was upgraded to Overweight from Equal Weight at Morgan Stanley.
  

Analyst upgrades:

• Jefferies upgraded Brocade (NASDAQ: BRCD) to Buy from Hold on expectations expanding OEM partnerships, new products and entry into new markets will drive long-term growth. The firm's channel checks indicate the first phase of an IBM (NYSE: IBM) deal for ethernet products will be announced next week. Jefferies raised its target price on the stock to $6 from $3.50.
  
• JMP Securities upgraded Broadcom (NASDAQ: BRCM) to Market Perform from Underperform citing the potential settlement with Qualcomm (NASDAQ: QCOM). The firm said Broadcom has far more to gain than Qualcomm has to lose.
  
• Citigroup upgraded Air Products (NYSE: APD) and Praxair (NYSE: PX) to Buy from Hold on expectations that an improvement in customer operating rates will benefit gas companies. The firm raised its target price on Air Products to $70 from $55 and on Praxair to $79 from $63.
  
• Royal Bank of Scotland upgraded BP Plc (NYSE: BP) to Buy from Hold to reflect its dividend yield at current levels.
• Apple (NASDAQ: AAPL) was raised to Outperform from Underperform at RBC Capital.
  
• T. Rowe Price (NYSE: TROW) was upgraded at Sandler O'Neill to Hold from Sell.
  
• Morgan Stanley (NYSE: MS) was lifted to Neutral from Underperform at Banc of America/Merrill.

Analyst upgrades:

• RW Baird upgraded LHC Group (NASDAQ: LHCG) to Outperform from Neutral based on valuation and expectations for raised 2009 guidance. The firm has a $36 target on the stock.
  
• Deutsche Bank upgraded Swiss Reinsurance (OTC: SWCEY) to Buy from Hold following the CEO change as the firm views it as a positive move.
  
• Wachovia upgraded DuPont Fabros (NYSE: DFT) to Outperform from Market Perform because it thinks the company has taken major measures to mitigate its liquidity risk by obtaining additional debt. The firm also notes that the company signed several new leases.
• Goldman added Air Products (NYSE: APD) and Burger King (NYSE: BKC) to the Conviction Buy List.
  
• MSC Industrial (NYSE: MSM) was upgraded to Outperform from Market Perform at William Blair.
  
• Northrop Grumman (NYSE: NOC) was raised to Outperform from Market Perform at Bernstein.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Air Products and Chemicals Inc. (NYSE: APD) met Q1 profit estimates and lowered its guidance.
• Apple Inc. (NASDAQ: AAPL) stellar Q1 results easily topped analysts' expectations, sending shares higher.
• Coach Inc. (NYSE: COH) unimpressive Q2 results due to holiday sales were in line with expectations.
• General Electric Co. (NYSE: GE) Q4 profits were dragged down finance, consumer divisions.
• Harley-Davidson Inc. (NYSE: HOG) Q4 earnings tumbled on lower demand globally and domestically.
• Johnson & Johnson (NYSE: JNJ) reported better-than-expected Q4 earnings but lower revenue.
• Microsoft Corp. (NASDAQ: MSFT) released its dismal Q2 results early and announced job cuts.
• Potash Corp. of Saskatchewan Inc. (NYSE: POT) Q4 earnings more than doubled on higher prices.
• Seagate Technology (NYSE: STX) fell after posting losses and guidance for more weakness ahead.
• Sony Corp. (NYSE: SNE) warned that it would post its biggest loss ever in full-year 2008.
• State Street Corp. (NYSE: STT) earnings tumbled on charges but still topped analysts' estimates.
• UnitedHealth Group Inc. (NYSE: UNH) Q4 earnings were in line with estimates and it reaffirmed its outlook.
• United Technologies Corp. (NYSE: UTX) modest Q4 earnings growth was in line with expectations.

For more highlights from this week, see eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others

Air Products (NYSE: APD) reported Q1 EPS of 97 cents versus consensus estimates of 97 cents. APD sees Q2 EPS 80 cents -90 cents versus consensus estimates of $1.07. APD closed at $52.64. February option implied volatility of 68 is above its 26-week average of 50, according to Track Data, suggesting larger price movement.

Praxair (NYSE: PX), a large industrial gas company, closed at $59.21. PX is scheduled to report Q4 EPS on January 28. PX February option implied volatility of 57 is above its 26-week average of 48, according to Track Data, suggesting larger price movement.

Airgas (NYSE: ARG) closed at $37.03. ARG will release EPS on January 28. ARG February option implied volatility of 71 is above its 26-week average of 57, according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Praxair (NYSE: PX) closed at $50.06 Monday. PX is scheduled to report Q3 EPS on October 29. Deutsche Bank lowered EPS estimates for PX to reflect the strengthening U.S. dollar and the slowdown in global GDP growth. PX November option implied volatility of 87 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Air Products (NYSE: APD) closed at $47.30 Monday. APD overall option implied volatility of 77 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Airgas (NYSE: ARG) closed at $31.40 Monday. ARG November option implied volatility of 97 is above its 26-week average of 44 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Analyst upgrades:

• Piper upgraded Intel (NASDAQ: INTC) to Buy from Neutral to reflect the company's strong competitive position and low valuation. The firm does not expect Intel to miss Q3 estimates.
  
• Goldman upgraded shares of Deutsche Telecom (NYSE: DT) to Buy from Neutral and added the stock to the Conviction Buy List as they believe the dividend is well covered.
  
• Wachovia upgraded Landstar System (NASDAQ: LSTR) to Outperform from Market Perform on valuation and potential near-term catalysts from hurricane-related activities.
• Abercrombie & Fitch (NYSE: ANF) was raised to Outperform from Market Perform at Friedman Billings.
  
• Research in Motion (NASDAQ: RIMM) was upgraded at JMP Securities to Outperform from Market Perform.
  
• Baird lifted Wells Fargo (NYSE: WFC) to Neutral from Underperform.

Analyst downgrades:

• Jefferies downgraded VCA Antech (NASDAQ: WOOF) to Underperform from Buy as they believe reduced consumer spending and rising unemployment levels will hurt the company's hospital and lab volumes in FY09. The company's target was lowered to $25 from $35.
  
• Oppenheimer downgraded shares of Total System (NYSE: TSS) to Perform from Outperform to reflect the challenging macro environment and the customer portfolio risk from bank consolidation.

The quarter is winding down, and here are some highlights from this past week's earnings coverage from BloggingStocks:

• Air Products & Chemicals Inc. (NYSE: APD) lowered its guidance for the current quarter.
• AutoZone Inc. (NYSE: AZO) missed Q4 earnings estimates despite a modest increase in profits.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported disappointing Q2 results that met analysts' expectations.
• Chevron Corp. (NYSE: CVX) faces earnings declines if the Paulson plan fails, says Jim Cramer
• Circuit City Stores Inc. (NYSE: CC) earnings declines finally led to the ouster of CEO Schoonover.
• Discover Financial Services (NYSE: DFS) beat Q3 expectations despite charges and reserves.
• General Electric Co. (NYSE: GE) lowered its Q3 and full-year forecast due to financial sector woes.
• KB Home (NYSE: KBH) reported a greater-than-expected loss for Q3, and yet shares rose.
• Lennar Corp. (NYSE: LEN) posted significantly smaller Q3 losses on cost cutting.
• McCormick & Co. Inc. (NYSE: MKC) topped Q3 expectations due to the sale of a brand.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q1 results despite a decline in net income.
• Research in Motion Ltd. (NASDAQ: RIMM) posted strong Q2 results accompanied by a weak forecast.
• Rite Aid Corp. (NYSE: RAD) Q2 net loss more than doubled and revenues were flat
• Secure Computing Corp. (NASDAQ: SCUR) missing estimates didn't stop a deal with McAfee (NYSE: MFE).
• 3Com Corp. (NASDAQ: COMS) Q1 results topped both analysts estimates and previous guidance.
• 3M Co. (NYSE: MMM) faces significant earnings declines if the Paulson plan fails, says Jim Cramer.

Also, are analysts' expectations for the the coming year too optimistic?

Upcoming quarterly reports include Circuit City (NYSE: CC), Walgreen (NYSE: WAG), Pepsi Bottling Group (NYSE: PBG), Constellation Brands (NYSE: STZ), Marriott International (NYSE: MAR), Family Dollar Stores (NYSE: FDO).

Visit AOL Money & Finance for more earnings coverage.

Today was nothing short of "Bailout Failure: Day 2 of the Siege" after Bernanke and Paulson both talked down the markets in the speech over the need for the bailout package on Capitol Hill. It is becoming the fear or the concern that many failures are just going to have to shake out of the system. The good news is that oil fell too after a record day into yesterday's futures expiration for the October contract. Bond yields also rose on fears that the Treasury is just going to print money for whatever bailout package it puts together.

Below are today's unofficial closing bell levels:
DJIA 10,851.30 -164.39 (-1.49%)
NASDAQ 2,155.34 -23.64 (-1.08%)
S&P500 1,189.96 -17.13 (-1.42%)
10YR T-Note 3.841% (+0.015%)
52-Week Lows
Analyst Upgrades
Analyst Downgrades

Air Products & Chemicals Inc. (NYSE: APD) lowered its guidance for the quarter. The company now sees its earnings in a range of $1.24 to $1.26 EPS, while First Call has the consensus estimate of $1.40 and its previous guidance was $1.37 to $1.42. It gave its one-time reasons, but this sounds more symptomatic than anything.

Circuit City Stores Inc. (NYSE: CC) announced that CEO Philip Schoonover was forced to resign amid nearly two-year's worth of troubles and management missteps that drove this company into the ground. Shares were indicated up over 5% early today, but traders sold the news as they just expect the numbers to get worse. Shares were down over 5% at $1.61 immediately before the close.

Citigroup Inc. (NYSE: C) was down over 4% at $19.20 in today's final miunutes. Part may be on bailout concerns, but Meredith Whitney of Oppenheimer cut key bank estimates again along with other money center banks.

General Electric Co. (NYSE: GE) was down almost 4.5% at $25 in the final minutes today although not on news out of the company itself. It seems that Merrill Lynch has finally figured out there is more turmoil in the consumer and financial sector. The brokerage firm downgraded its Buy rating to a lower Neutral rating.

ImClone Systems Inc. (NASDAQ: IMCL) was one of the few real winners with shares up over 6% at $63.11 in today's final minutes. This is after the acquisition offer has now been raised to a formal tender of $62 per share.

MOST NOTEWORTHY: Memc Electronic, Citigroup and Sanmina were today's noteworthy upgrades:

• Citigroup upgraded shares of Memc Electronic (NYSE:WFR) to Buy from Hold on valuation as they believe the bad news is priced in following the company's quarter. The firm raised Memc's target to $65 from $64. JP Morgan upgraded shares to Overweight from Neutral on valuation.
  
• Morgan Stanley upgraded Citigroup (NYSE:C) to Equal Weight from Underweight based on asset sales, improved top-line, and dividend.
  
• Credit Suisse upgraded Sanmina (NASDAQ:SANM) to Outperform from Neutral citing valuation and margin traction. The firm raised Sanmina's target to $2.50 from $1.60. Cowen upgraded Sanmina to Outperform from Neutral following the Q3 report and guidance.

OTHER UPGRADES:

• Pharm Product (NASDAQ:PPDI) was upgraded at Baird to Outperform from Neutral.
  
• Sunoco Logistics (NYSE:SXL) was raised to Outperform from Market Perform at Wachovia.
  
• JP Morgan lifted Air Products (NYSE:APD) to Overweight from Neutral.

MOST NOTEWORTHY: Air Products, Eaton and Pharmaceutical Product Development were today's noteworthy downgrades:

• Jefferies downgraded shares of Air Products (NYSE: APD) to Hold from Buy and lowered their target to $105 from $112 as they believe investors should wait for a better entry point given the company's more cyclical growth portfolio. They see downside risks to its electronics, chemicals and equipment businesses.
  
• Eaton Corp. (NYSE: ETN) was downgraded to Neutral from Buy at Goldman due to its high exposure to the U.S. economy.
  
• Baird downgraded Pharmaceutical Product Development (NASDAQ: PPDI) to Neutral from Outperform as its 2008 development guidance appears full and margins look full.

OTHER DOWNGRADES:

• Goldman downgraded the U.S. non-life insurance sector to Neutral from Attractive and removed Synchronoss (NASDAQ: SNCR) from its Conviction Buy List.
  
• ING downgraded Fortis (OTC: FORSY) to Hold from Buy.

MOST NOTEWORTHY: Walgreen, CBS Corp, SL Green Realty, Brandywine Realty Trust and Navteq were today's noteworthy downgrades:

• Walgreen (NYSE: WAG) was downgraded to Neutral from Buy at Merrill and to Market Perform from Outperform following its weak Q4 report. Merrill sees limited upside following the worse-than-expected quarter.
  
• CBS Corporation (NYSE: CBS) was downgraded to Hold from Buy at Deutsche Bank to reflect the company's soft rating trends and poor local advertising growth.
  
• Banc of America downgraded shares of SL Green Realty (NYSE: SLG) and Brandywine Realty Trust (NYSE: BDN) to Neutral from Buy. The firm downgraded shares of SL Green to reflect their more cautious stance on the office sector and believes uncertainty over cap rates will limit share upside, and downgraded shares of Brandywine to reflect a lack of near-term catalysts and their more cautious stance on the office sector.
  
• Navteq Corporation (NYSE: NVT) was downgraded to Neutral from Buy at UBS and to Market Perform from Outperform at JMP Securities following its acquisition by Nokia Corporation (NYSE: NOK).

OTHER DOWNGRADES:

• Goldman Sachs removed Monsanto Company (NYSE: MON) from its Conviction Buy List.
  
• The firm downgraded Air Products & Chemicals (NYSE: APD) to Neutral from Buy and Valspar Corporation (NYSE: VAL) to Sell from Neutral.
  
• CIBC downgraded Axcan Pharma (NASDAQ: AXCA) to Sector Performer from Sector Outperformer.
  
• Humana Inc (NYSE: HUM) was downgraded to Neutral from Buy at Merrill.