Analyst upgrades:

• Morgan Stanley upgraded shares of Apple (NASDAQ: AAPL) to Overweight from Equal Weight on expectations of continued iPhone growth. The firm raised its target on the stock to $180 from $105.
• FBR Capital upgraded Bank of America (NYSE: BAC) to Market Perform from Underperform as it sees limited downside with half of the company's capital plan completed. The firm keeps a $12 target on the stock.
• Jefferies upgraded Cash America (NYSE: CSH) to Buy from Hold to reflect a strengthened balance sheet following the capital raise and easing regulatory risk. The firm raised its target price to $30 from $22.
• Ericsson (NASDAQ: ERIC) was upgraded to Outperform from Market Perform at Bernstein.
• MB Financial (NASDAQ: MBFI) was raised to Outperform from Neutral at Baird.
• Pinnacle West (NYSE: PNW) was upgraded at Credit Suisse to Outperform from Neutral.

While the release of economic data doesn't stop next week (see economic schedule highlights below), the earnings season does wind down dramatically. Most of the S&P 500 companies already have reported on the past quarter, which means dismal earnings news is largely behind us, at least for a while. About the only companies of note expected by analysts surveyed by Thomson Reuters to report falling earnings this week are Costco Wholesale Corp. (NASDAQ: COST), Wendy's/Arby's Group Inc. (NYSE: WEN), Foot Locker Inc. (NYSE: FL), Bank of Montreal (NYSE: BMO), and Steinway Musical Instruments Inc. (NYSE: LVB).

While PetSmart Inc. (NASDAQ: PETM) and Big Lots Inc. (NYSE: BIG) quarterly profits are expected to be about the same as a year ago, Liz Claiborne Inc. (NYSE: LIZ), Kenneth Cole Productions Inc. (NYSE: KCP), Ciena Corp. (NASDAQ: CIEN), and Trina Solar Ltd. (NYSE: TSL) are expected to have swung to losses in the most recent quarter.

MOST NOTEWORTHY: New York Community Bancorp, Gushan Environmental and Central European Distribution were today's noteworthy initiations:

• Citigroup believes New York Community Bancorp (NYSE: NYB) is uniquely-positioned to benefit from the current operating environment and expects loan growth, NIM expansion, and good credit to boost EPS growth over the next year. The firm initiated shares with a Buy rating and $19 target.
  
• Oppenheimer said Gushan Environmental (NYSE: GU) benefits from the Chinese government's policies encouraging growth of renewable fuels; shares were initiated with an Outperform rating and $14 target.
  
• Jefferies initiated Central European Distribution (NASDAQ: CEDC) with a Buy rating and $66 target and views the company as a pure play on rising disposable incomes, particularly in Poland where it is headquartered.

OTHER INITIATIONS:

• Lehman assumed Ciena (NASDAQ: CIEN) with an Overweight rating and $35 target.
  
• BMO Capital started Millenium Pharma (NASDAQ: MLNM) with an Outperform rating and $18 target.
  
• Keefe Bruyette started Meridian Interstate Bancorp (NASDAQ: EBSB) with an Outperform rating and $11.50 target.

When is it good to be an alcohol importer? It's just fine, when you are one of the biggest ones in Europe. It's also very good, when you own a couple of your own distilleries and are one of the biggest vodka producers in the world.

Central European Distribution Corporation (NASDAQ: CEDC) imports and distributes more than 700 brands of beer, spirits and wines in Poland. Among its imported brands are Diageo (NYSE: DEO) spirits, Metaxa Brandy, Remy Martin Cognac, Sutter Home wines, E&J Gallo wines and Jim Beam bourbon. The firm also makes and distributes various brands of vodka. The company owns two distilleries and operates 16 distribution centers, serving some 39,000 retail outlets.

CEDC pleased investors last week, when it raised its FY07 EPS guidance from $1.50-1.66 to $1.56-1.72 and its FY07 revenue guidance from $1.05-1.10 billion to $1.10-1.15 billion. Analysts had been expecting $1.59 and $1.09 billion. The CEO cited strong underlying growth in core brands and downward pressure on raw spirit pricing for the more optimistic outlook. Management also guided FY08 EPS to $2.00-2.10 ($2.00 consensus) and FY08 revenues to $1.20-1.30 billion ($1.23B consensus).