Analyst Upgrades

• General Growth (GGP) to outperform from neutral at Credit Suisse.
• PPL Corp. (PPL) to outperform from market perform at FBR Capital.
• Hudson City Bancorp (HCBK) to neutral from reduce at Nomura.
• Hologic (HOLX) to conviction buy from buy at Goldman.
• Cognex (CGNX) to overweight from neutral at Piper Jaffray.
• Buckeye Partners (BPL) to outperform from market perform at Wells Fargo.
• Ericsson (ERIC) and Health Care REIT (HCN) to buy from neutral and Olin (OLN) to neutral from sell at UBS.
• Nalco (NLC) to overweight from neutral at JPMorgan.
• Watts Water (WTS) to buy from hold at BB&T.
• McDermott (MDR) to buy from neutral at Pritchard.

We are being bombarded with data from a host of sources, including mobile devices, broadband and cloud computing. Bringing all of this data together will create a new business opportunity.

Ericsson (ERIC), the Swedish network equipment maker, has already foreseen the potential for bringing data together on its fourth generation Long Term Evolution Network (LTE).

Markets opened lower this morning, with the DJIA down around 70 points before noon as it pulled back from near 12,000. Earnings reports from some blue-chip stocks were lukewarm to poor, contributing to the slide. News that President Obama will propose a federal spending freeze and a ban on congressional earmarks provided a bit of an up-tick in the early afternoon, but not enough to overcome the earlier decline. Crude oil is trading below $87/barrel and gold is down -$13/oz, to $1,331.50, its lowest level in nearly three months.

Here are the unofficial numbers for late afternoon trading today:

Dow Jones 11,977.19 -3.33 (-0.03%)
S&P 500 1,291.18 +0.34 (0.03%)
Nasdaq 2,719.25 +1.70 (0.06%)

Analyst Upgrades

• Polo Ralph Lauren (RL) to buy from hold at Citigroup.
• Qualcomm (QCOM) to buy from neutral at Roth Capital.
• Walgreen (WAG) to conviction buy from neutral at Goldman.
• Rockwell (ROK) to outperform from neutral at Credit Suisse.
• Carnival (CCL) to buy from hold at Deutsche Bank.
• SunTrust (STI) and TD Bank (TD) to outperform from market perform at Keefe Bruyette.
• Hawaiian Electric (HE) to outperform from neutral at RW Baird.
• Essex Property Trust (ESS) to outperform from neutral at Macquarie.
• Amgen (AMGN) to neutral from underperform at BofA/Merrill.

Analyst Upgrades

• inContact (SAAS) to buy from neutral at Roth Capital.

Analyst Downgrades

• Ericsson (ERIC) to neutral from buy at Goldman.
• Hovnanian (HOV) to underperform from buy at BofA/Merrill.
• PrivateBancorp (PVTB) to market perform from outperform at BMO Capital.
• Logitech (LOGI) to neutral from outperform at Exane BNP Paribas.

Analyst Upgrades

• Best Buy (BBY) was upgraded to top pick from outperform at RBC Capital, as the firm thinks the company's valuation is inexpensive while it will perform well during the holiday season.
• Credit Suisse upgraded CF Industries (CF) to outperform from neutral, citing favorable fundamentals in nitrogen and phosphate markets.
• Canadian Solar (CSIQ) was raised to buy from hold by Jefferies, which cited expectations for higher selling prices next year and cost savings from sourcing more components internally.
• BMO Capital upgraded RC2 Corp. (RCRC) to outperform from market perform as the firm believes that RC2's baby products are performing better than previously expected.
• Ericsson (ERIC) was upgraded to neutral from underperform at BofA/Merril.
• ProLogis (PLD) was upgraded to buy from hold at Stifel Nicolaus.
• Constellation Energy (CEG) was upgraded to outperform from neutral at Macquarie.

Nokia Corp. (NOK) used to be the dominant player in the cell phone industry. But thanks to smartphone manufacturers like Apple (AAPL), HTC and others, Nokia is losing market share, and its stock price is plunging.

Now, just in case you are thinking that Nokia looks like a good value play, take a look at what analysts are saying.

There were two pieces of Sony Corp. (SNE)-related news in the past 24 hours. First, Sony Ericsson, the joint venture of LM Ericsson (ERIC) and Sony, posted on Friday an unexpected net gain of euro21 million, or $28 million, for the first quarter, even as the company's revenue dropped 19% to euro1.41 billion. A year ago, the company lost euro293 million. It lost euro167 million in the fourth quarter. The phonemaker's profit received a boost from the fact that its restructuring charge was just euro3 million, far lower than the euro150 million worth of charges in the fourth quarter.

Meanwhile, late Thursday, market researcher NPD Group released data showing that game software sales increased roughly 10% during March, far better than the 5% expected, and the first period of growth in six months. However, game hardware sales dropped 4%. Video-game sales received a major boost from strong releases.

Sprint Nextel Corp. (NYSE: S) has taken the next step to delete more costs from its bottom line by sending the management of its nationwide wireless network to Sweden's Ericsson. The deal -- valued at up to $5 billion -- will allow Sprint to offset its declining subscriber revenue and numbers with lowered costs.

Research in Motion (NASDAQ: RIMM) is recently down $2.32 to $35 in pre-open trading. RIMM lowered Q3 earnings guidance. Deutsche Bank has a Sell rating on RIMM. RIMM December option implied volatility of 140 is above its 26-week average of 72 according to Track Data, suggesting larger price movement.

Motorola (NYSE: MOT) closed at $4.27. MOT overall option implied volatility of 95 is above its 26-week average of 69 according to Track Data, suggesting larger price movement.

Nokia (NYSE: NOK) closed at $13.64. NOK will host Capital Markets day in New York on December 4. Smith Barney says: "Margin targets to be lowered but how bad will 09 get?" NOK December option implied volatility of 84 is above its 26-week average of 61 according to Track Data, suggesting larger price movement.

Ericsson (NASDAQ: ERIC) is recently up 10 cents to $7 in pre-open trading. Cowen says: "Reducing global handset industry, Sony Ericsson, on further weakness." ERIC overall option implied volatility of 78 is above is 26-week average of 62 according to Track Data, suggesting larger price movement.

Apple (NASDAQ: AAPL) is recently down $2.27 to $89.70 in pre-open trading. Kaufman Bros says "Maintain Buy. We continue to believe AAPL is one of the better names to own in this tough economy given its strong fundamentals." AAPL overall option implied volatility of 74 is above its 26-week average of 56 according to Track Data, suggesting larger price movement.

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

Analyst upgrades:

• Jefferies upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Buy from Hold on valuation with the stock down 65% in two months as they believe the company has a "best-in-class fundamental story." The firm lowered its target to $25 from $30.
• Morgan Stanley upgraded Sanofi-Aventis (NYSE: SNY) to Overweight from Equal Weight on valuation and believes near-term cost reductions could provide a positive catalyst.
• Citigroup upgraded New York Times (NYSE: NYT) to Hold from Sell and lowered its target to $5.50 from $7 on valuation and believes the dividend cut will boost the company's liquidity.
• Pantry (NASDAQL PTRY) was upgraded to Outperform from Market Perform at Friedman Billings.
• LECG Corp (NASDAQ: XPRT) was raised to Buy from Neutral at UBS.
• Thomson Reuters (NYSE: TRI) was upgraded at RBC Capital to Outperform from Sector Perform.

Analyst downgrades:

• Jefferies downgraded Suntech (NYSE: STP) to Hold from Buy and lowered its target to $6 from $25 as they believe concerns about a convert refinancing in February 2010 will continue to weigh on the stock.
• Credit Suisse cut Ericsson (NASDAQ: ERIC) to Underperform from Outperform due to expectations for a decline in wireless infrastructure spending.
• ING downgraded shares of Rio Tinto (NYSE: RTP) to Hold from Buy as they believe it will be challenging for the company to execute asset sales planned at reducing debt in the current environment.

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

• Amazon.com Inc. (NASDAQ: AMZN) reported strong Q3 results but warned of softness ahead.
• Amgen Inc. (NASDAQ: AMGN) beat earnings expectations and lifted its full-year forecast.
• AT&T Inc. (NYSE: T) Q3 results were worse than expected despite the iPhone's popularity.
• Broadcom Corp. (NASDAQ: BRCM) beat expectations but lowered its revenue guidance.
• Dice Holdings Inc. (NYSE: DHX) reported solid Q3 results despite the financial crisis.
• E*Trade Financial Corp. (NASDAQ: ETFC) widened its Q3 net loss and revenues shrank.
• Gannett Inc. (NYSE: GCI) just missed earnings estimates as advertising revenues declined.
• Hasbro Inc. (NYSE: HAS) posted solid Q3 results that topped analysts' expectations.
• Mattel Inc. (NYSE: MAT) missed Q3 earnings expectations despite popularity American Girl.
• McDonald's Corp. (NYSE: MCD) easily beat Q3 earnings estimates and lifted its dividends.
• Netflix Inc. (NASDAQ: NFLX) posted strong Q3 numbers but warned of slowing subscriber growth.
• Pfizer Inc. (NYSE: PFE) Q3 profits tripled due to cost cutting and sales of pain pill Lyrica.
• Potash Corp. of Saskatchewan (NYSE: POT) topped earnings estimates, sending shares higher.
• Reynolds American Inc. (NYSE: RAI) posted Q3 results that topped analysts' expectations.
• Sony Corp. (NYSE: SNE) slashed its earnings forecast on weakness in flat panel TVs and digital cameras.
• Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) reported better-than-expected Q3 results.
• 3M Co. (NYSE: MMM) solid Q3 results topped Wall Street expectations and it offered full-year outlook.
• VMWare Inc. (NYSE: VMW) Q3 earnings surged on strong growth in services revenue.

For more earnings highlights from this week, see Apple, Boeing, Microsoft, Yahoo!, UPS, American Express and others.

Watch for upcoming quarterly reports from Verizon (NYSE: VZ), Estée Lauder (NYSE: EL) , US Steel (NYSE: X), Aetna (NYSE: AET), Procter & Gamble (NYSE: PG), Qwest (NYSE:Q), Comcast (NASDAQ: CMCSA), Kellogg (NYSE: K), Kraft Foods (NYSE: KFT), MetLife (NYSE: MET), Moody's (NYSE: MCO), Office Depot (NYSE: ODP), Avon (NYSE: AVP), CBS (NYSE: CBS), CVS Caremark (NYSE: CVS), Sun Microsystems (NASDAQ: JAVA), Eastman Kodak (NYSE: EK), Motorola (NYSE: MOT), Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Washington Post (NYSE: WPO).

Visit AOL Money & Finance for more earnings coverage.

Analyst upgrades:

• Keefe Bruyette upgraded shares of Colonial Bancgroup (NYSE: CNB) to Outperform from Market Perform on valuation following the recent weakness and believes the company will be eligible to receive TARP funds. Morgan Stanley believes the company's valuation adequately reflects risk to the loan portfolio; the firm raised shares to Equal Weight from Underweight.
• Merrill upgraded Ericsson (NASDAQ: ERIC) and ASML Holding (NASDAQ: ASML) to Buy from Underperform and believes their valuation reflects the worst-case for bad news.
• Oppenheimer upgraded Trimble Navigation to Outperform from Perform on valuation as they believe the company's long-term growth story is intact.
• Celestica (NYSE: CLS) was upgraded to Sector Outperformer from Sector Performer at CIBC.
• KeyCorp (NYSE: KEY) was added to Goldman's Conviction Buy List.
• Wachovia raised EastGroup Properties (NYSE: EGP) to Outperform from Market Perform.

Analyst downgrades:

• UBS cut Barclays (NYSE: BCS) to Neutral from Buy as they believe capital raises could negatively impact earnings and that the dividend is likely to be cut.
• JP Morgan downgraded Discovery Holdings (NASDAQ: DISCA) to Underweight from Neutral based on valuation and the deteriorating economic outlook.
• Friedman Billings downgraded shares of Janus Capital (NYSE: JNS) to Underperform from Market Perform and lowered its target to $7 from $23 as they see further risk to the downside following the company's weaker-than-expected results.
• LKQ Corp (NASDAQ: LKQX) was cut to Sector Perform from Outperform at RBC Capital.
• Affymetrix (NASDAQ: AFFX) was lowered to Sell from Hold at Deutsche Bank.
• RightNow Tech (NASDAQ: RNOW) was downgraded at Baird to Neutral from Outperform.

Telefonaktiebolaget LM Ericsson (ADR) (NASDAQ: ERIC), a telecom-related business whose colleagues include Alcatel-Lucent (NYSE: ALU) and Cisco Systems, Inc. (NASDAQ: CSCO), reported earnings for the third quarter. And, unless I miss my guess, the market liked what it saw. As I write this, shares are up over 15%, and the trading volume is high. So, what's going on here?

Well, according to this source, revenue and profit for the quarter went beyond the expectations of analysts. The top line soared 13%. Nothing wrong with that. The bottom line, however, went down 28%, even though it exceeded what was expected. And then there was the gross margin improvement. A lot of times that can work wonders for a company's shares. Gross margin went from 35.6% to 37%. Wall Street was impressed.

Now, this is all well and good, but am I a buyer of Ericsson after the report? No. There are a few things to consider here. First, the global economy is a mess. Second, statements made by management in terms of the near future indicate a cautious stance. Third, there's no way I'm buying a stock that just rallied by a double-digit percentage in this market. Especially not a tech stock. There are harder ways to lose money. The 52-week low on the ADR's is about $6 per share, and I can easily see this one revisiting that level as we continue to get news on the economy throughout the quarter. Obviously, many investors out there disagree with me. But this is not the time to play momentum trader, in my opinion. I'm happy to sit on the sidelines in this case, even if I turn out to be wrong.

Disclosure: I don't own any company mentioned; positions can change without notice.

Wall Street's optimism in last week's preview about the earnings of tech stocks wasn't misplaced, as there were many more positive surprises than negative ones among the stocks we looked at. This week will bring plenty more data for investors in and watchers of the sector to mull over. Apple Inc. (NASDAQ: AAPL), AT&T Inc. (NYSE: T), and Microsoft Corp. (NASDAQ: MSFT), for example, are expected by analysts surveyed by Thomson Financial to post modest earnings gains from a year ago, to $1.11 per share (on $8.1 billion in sales), $0.72 per share (on $31.3 billion in sales), and $0.47 per share (on $14.8 billion in sales) respectively. All three of these companies ended the week closer to their 52-week lows than highs, and analysts on average consider them each a buy.

Here's a look at some of the week's biggest expected earnings gainers and decliners in the sector:

• Baidu.com Inc. (NASDAQ: BIDU): $1.25 per share (+44.0%) on revenues of $134.7 million (+103.2%)
• Broadcom Corp. (NASDAQ: BRCM): $0.44 per share (+38.6%) on revenues of $1.3 billion (+33.8%)
• QLogic Corp. (NASDAQ: QLGC): $0.31 per share (+29.0%) on revenues of $170.0 million (+21.2%)
• FLIR Systems Inc. (NASDAQ: FLIR): $0.32 per share (+28.1%) on revenues of $275.2 million (+44.0%)
• Juniper Networks Inc. (NASDAQ: JNPR): $0.30 per share (+26.7%) on revenues of $927.4 million (+26.2%)
• Waters Corp. (NYSE: WAT): $0.75 per share (+17.3%) on revenues of $391.6 million (+11.1%)
• Flextronics International Ltd. (NASDAQ: FLEX): $0.29 per share (+17.2%) on revenues of $8.7 billion (+57.3%)
• EMC Corp. (NYSE: EMC): $0.19 per share (+10.5%) on revenues of $3.7 billion (+12.9%)